Eircom settle LLU battle out of court.

Dangger

Direct from the Eircom press release....

Friday 26th September, 2003. eircom today welcomed ComReg's decision to initiate a new process to establish an appropriate price for LLU. Both parties have agreed to settle the issue outside of the courts. As a result of this settlement the previous LLU price of 16.81 euro has been restored until a new price is set in April 2004.

eircom objected to the process used to arrive at the LLU price of euro 14.67 and had proposed arbitration to ComReg with a view to avoiding court action. The company however was left with no choice but to issue court proceedings when ComReg published their Direction in May of this year. eircom now looks forward to working constructively with ComReg as part of a new rigorous and professional process, to identify the right price for LLU.

eircom believes that the outcome of these discussions is critical for the telecommunications infrastructure and for the industry, given the importance of a well invested local loop to support the further roll-out of broadband in Ireland.

spongebob

The last process took a year (ending in May)

Surely the High Court would be faster than this crap. Comreg can't do anything useful in a reasonable timeframe (less than 6 months)

M

MarcusGarvey

Hang on. I know who the losers are in this case (the consumer , who else ? ) but who actually won here ?

Did Eircom get their way ? Or did they just drag it on long enough to get their way for a long time and then go into negotiations where they can once again run back to the courts ?

nahdoic

What's comreg playing at, didn't they spend ages talking about the new LLU charge with eircom, but in the end they could't come to a decision that they could agree on.

So comreg had to take a regulatory decision, and set the LLU charge at E14.67. That should have been the end of the story. How exactly are they going to agree this time round? What are you playing at comreg. If you don't have the power to regulate eircom, then ask for it.

I'm sure eircom are just going to roll over this time. Geeze.

Dangger

This means that ComReg have learnt very little from their experiences at the hands of Eircom for the past few years and proves that Minister Ahern is correct that government intervention is required, where the market (and regulation) continues to fail, as is the case in Ireland .

The announcement means that Eircom have suceeded in leading ComReg on a merry dance once again which they can stall and stall and stall whilst yet another investigation is carried out into their LLU pricing and efficiency, and OLO's cannot take a risk of planning a price cut into offerings with the danger that after April 2004 they will be stung with a price rise rather than a cut.

The only time we have seen real movement is when Ahern intervened as was the case with FRIACO. ComReg are simply unable to impose their will or decisions on Eircom.

The danger however is that the rest of Europe's regualtion is moving ahead of us. So Brussels is calling for less intervention which would favour Eircom, which is currently the case, yet the Irish government thankfully have realised that their IS market failure in Ireland and they have to intervene. There has been failure all along but the government never had the will or perhaps (dare I say) the understanding under O'Rourke to get into the fray and get their hands dirty.

The government may now have to fight Brussels over intervention now and Eircom have a good case with Brussels on the unfairness of it all (as far as they are concerned any way!).

nahdoic

from the powerless comreg website

Page 1/2 ComReg PR260903
ComReg says challenge to LLU pricing dropped
In the High Court today ComReg and eircom have agreed to settle the judicial review
proceedings in relation to the pricing of local loop unbundling (LLU). Eircom has
agreed to withdraw its challenge to Comreg’s direction of May 2003. Both sides have
agreed that the current prevailing price of €16.81 will continue to apply until 31 March
2004.

ComReg believes that, despite the endeavours of those involved, the judicial review
proceedings were unlikely to have been concluded before the existing price expires in
March 2004. ComReg believes that the most efficient way to resolve this matter will
be to issue a new decision as soon as possible in the New Year to be implemented on
1 April 2004. ComReg looks forward to a fresh decision early in the New Year and we
hope for a constructive and realistic approach from eircom
The Chairperson for the Commission for Communications Regulation, Etain Doyle said
that now that the challenge is behind us we can look forward to getting certainty on
this particular issue.

ComReg issued a decision on May the 28th this year directing eircom to apply a price
of €14.67, which takes into account the costs of an efficient operator. This price was
challenged by eircom who were seeking a price of €27. As part of their challenge,
eircom sought a stay the price directed by eircom pending a Judicial Review by the
High Court. Eircom undertook to apply a price of €16.81, the price which had
previously been in place, for the duration of the Judicial Review.

ComReg considers that there is merit in avoiding the possibility of parallel proceedings
through, an appeal or a judicial review, on the same or similar issues. ComReg
believes that the settlement has the merit that - although the implementation of
ComReg’s view of the appropriate price of LLU will be delayed in the short term - the
matter is likely to be brought to a conclusion more speedily.

A Local Loop is the connection between a local telephone exchange and a customer’s
premises. The vast majority of Local Loops in Ireland are owned by eircom. eircom is
legally obliged to allow other operators have access these loops in order that they
may provide their own services, including broadband, directly to customers. This
process is known as Local Loop Unbundling (LLU). Eircom is obliged to provide these
loops at a price which reflects their cost of provision.
Media Release- Friday, 26th of September

ComReg is very conscious of the importance of LLU for the development of broadband
and LLU pricing is also critical in terms of the provision of other important products,
such as Partial Private Circuits.
It is imperative that other operators have certainty on the issue of pricing at the
earliest possible date, so that they can plan their investment and broadband product
development for the long term.
The main points of the settlement are:
• The case is to be struck out.
• The prevailing rate of €16.81 to continue to apply until 31 March with a further
decision to be made in the interim. ComReg has amended its decision note to
allow this to happen.
An information note ComReg 03/116 about this matter and an amended version of
document ComReg 03/55 is available on the comreg website www.comreg.ie
ENDS
Issued By
Tom Butler
Public Affairs Manager, ComReg

spongebob

Eircom also appeared to fold as Capex budgets were being finalised in Ntl BT Worldcom etc. As there is no certainty in the Next round of LLU negotiations then they won't invest in Ireland next year....2004 .

Eircom won't invest next year as we know.

Therefore nobody will !

We are all f***ed

M

nahdoic

IOFFL should kick up blue murder about the impotence of comreg.

nahdoic

ComReg looks forward to a fresh decision early in the New Year and we
hope for a constructive and realistic approach from eircom

You hope? You hope? Sweet mother of the Divine, you hope?

Eurorunner

If Etain Doyle cared about the role shes supposed to be playing in all of this, surely she should be publicly calling for more powers....not rolling over:rolleyes:

Paddy20

Dear Mr Ahern,

Please use the powers vested in you. By the Government and the voters of this fair Isle.

Intervene NOW. Eircom is now a bloody disgraced, ex - Irish public utility, that was stolen from the people in a national scam that even robbed pensioners. Only for our beloved P&T/Eircom to be registered in damned London as a British privately owned business.

Just how much blatant highway robbery, do you really expect the silent majority of "Decent" Irish Citizens to tolerate. Before they introduce the Guillotine?.. Act now, or {CALL AN } Immediate General Election!.

Or stop funding "CoNreG" forthwith, and sack the bunch of spineless wonders employed in that farce. They are hardly going to rush into solving this disastrous crisis, as they would only be voting themselves out of a comfortable overpaid quango.

P.:mad:

nahdoic

Hats off to eircom though. Congrats. The skill with which they are able to consistently spin a yarn to comreg is nothing short of genius.

Etain Doyle how do you sleep at night? You've ruined Ireland's chances of catching up. If you're angry about your powerless position. If you're angry at the slow pace. If you're angry at being bullied by eircom's elite legal team, then for goodness sake, MAKE SOME NOISE. Call for more powers. Ask Dermot Ahern specifcally for help with LLU. Face facts. There will will never be an acceptable agreement between yourselves and eircom. Stop codding yourselves. Stop smoothing over the situation. You're not there to makes friends, you're there to regulate and promote competition. You've failed miserably and consistently.

nahdoic

I don't have much time these days, but this weekend I'm going to make time. Postal letters to Dermot Ahern and Etain Doyle about this situation. It's nothing short of scandalous. I wonder if they'll respond.

I'm assuming

Etain Doyle
Commission for Communications Regulation
Block DEF, Abbey Court
Irish Life Centre
Lower Abbey Street
Dublin 1

and

Dermot Ahern, T.D.,
Minister for Communications, Marine and Natural Resources,
Hill Cottage,
The Crescent,
Blackrock,Dundalk,
Co. Louth

will get to both of them.

Dangger

IOFFL have had some media contact as this news broke, and it's likely that there will be a piece on Radio 1's 5-7 (6:50pm tonight I believe) live business program today and in tomorrow's Irish Times.

I agree nahdoic, this is nothing but a victory for Eircom.
Regulation is not working, and continues to let consumers and businesses down.

Paddy20

nahdoic,

If you posted your letters to :-

1, Ms Etain Doyle,
Commissioner for NON - Coms Reg,
Dublin.

and,

2, Mr Dermot Ahern,
Minister for NO - Communication,
Dublin.

I feel sure our An-Post would deliver to the correct individuals !.

P.;)

Eurorunner

Postal letters to Dermot Ahern and Etain Doyle about this situation.

I'm sure some more boardsie's will join you in this Nadhoic.

it's likely that there will be a piece on Radio 1's 5-7 (6:50pm tonight I believe)

If someone has the means and the time, please record the interview if poss - think im going to miss it..

BigEejit

God almighty, a half deaf, half blind old dog would have learned this trick of eircoms long ago ... Doyle, you are a muppet

Capt'n Midnight

I can imagine it now - Eircom want to increase the price by €2 - so lets tell comreg we want double, they'll huff and puff and claim a victory , but we'll still get the price rise we aimed for...

SkepticOne

Well done Eircom!

Uncertainty over LLU pricing, which has to date put off operators from competing with Eircom over LLU is to be extended to April 2004. Only idiots (or EsatBt) would be foolish enough to attempt to unbundle lines while the LLU charge is still up in the air.

I wonder how many times Eircom will be able to repeat this trick befor ComReg catches on.

In April 2004, either ComReg agree to Eircom's ludicrous 27 euro charge or else they try, once again, to impose a charge based on costs an "efficient european operator" might incur and the whole merry-go-round begins again.

Either way, until either the Government or ComReg catch on to what Eircom is up to, the consumer is well and truely ****ed.

SkepticOne

Originally posted by MarcusGarvey
Did Eircom get their way ? Or did they just drag it on long enough to get their way for a long time and then go into negotiations where they can once again run back to the courts ?

Eircom won. It is in Eircom's interest to drag out the uncertainty over LLU charges for as long as possible as this means companies won't be competing with them.

The message for the Government and consumers is that competition based on the regulation does not and will not work. Only when the whole sorry mess is completely bypassed can there be proper competition and progress.

SkepticOne

The title of this thread is a little misleading. Nothing has been settled yet. Eircom have simply backed down from the court case (which may have settled the issue once and for all) in order to continue stifling the market.

Mr_Man

How about Judge Laffoy as a replacement, at least she had the bottle to stand up to the government and tell them they were wasting her and the Taxpayers time and money.

M.

MarcusGarvey

Ok, so are IOFFL finally saying that Comreg are a useless shower who have no backbone and/or clue ?

If I recall you were staying open minded about them before.

Now might be the perfect time to get the Govt to kick their sorry ass and do some good since their ratings are so low and they want to keep us plebs happy.

dahamsta

Originally posted by nahdoic
Hats off to eircom though. Congrats. The skill with which they are able to consistently spin a yarn to comreg is nothing short of genius.

I'm popping up there next week with my pink slip for the Eiffel Tower. I'll prolly throw in Big Ben as a twofor.

Mr_Man, Doyle is on the way out the door, I'm just not sure when. John Doherty's running CumRag most of the time these days. Etain's busy looking for a job.

By the way, if you're sending letters this weekend, please CC the opposition party leaders and shadow communications ministers. Here's a partial listing, some of the websites are pretty much useless for finding information:

All can be written to at Dáil Eireann, Leinster House, Dublin 2.

Pat Rabbittee TD, Labour Party Leader
Tommy Broughan TD, Labour Spokeperson on Communications
Enda Kenny TD, Fine Gael Party Leader
Simon Coveney, Fine Gael Spokerperson on Communications
Mary Harney, Progressive Democrats Party Leader
Caoimhghín Ó Caoláin, Sinn Féin Party Leader

Oh, and copy Bill Murphy on it while you're at it. Since they're the only people unbundling lines in Ireland, he should be aware that we're trying to help him. Not that the useless lump deserves it. Dunno the address but "Bill Murphy, EsatBT, Dublin" will find him.

adam

Mr_Man

Does Mr Doherty have the b***s to face up to Eircom, and if necessary the Government, to provide us with a proper regulatory service ? Or is he going to be another waste of space and money ?

M.