Eircom to cut broadband rates

MDR

from Rte.ie

Eircom is cutting its monthly rental fee for high speed broadband services from the beginning of March.

Subject to regulatory approval Eircom broadband customers will now pay €40 per month including VAT, down from €54. The wholesale rate charged to other operators who sell on services under their own brand will fall from €27 to €23 per month.

Eircom is trying to sign up 100,000 broadband customers by the end of the year, and says it already has 35,000. director David McRedmond said the country was set to reach the average EU broadband penetration rate of 6-7% by the end of this year. Eircom also said it would soon announce plans for a new range of broadband retail products.

Tazzle

Have any of the other isps made announcements to cut their prices in response?

Thorbar

Any news on increasing the cap?

crawler

I will post details shortly......trying to find a softcopy!

crawler

See MDRs post - Mods you can delete this if you want!

Praetorian

I also hope they will announce other RADSL packages. 1024x256, 2048 x 512 and 4096 x ???. Come on Eircom your customers want more speed!

MarkR

Also in the broadband forum. Think i'll call UTV and ask for more info on my order...

spongebob

Originally posted by MDR
from Rte.ie
Subject to regulatory approval Eircom broadband customers will now pay €40 per month including VAT, down from €54.

McRedmond was quoted in the Independent by Ailish O Hora as saying.

1. The price cuts take effect 01 March
2. Headline price for 512k RADSL will be €39.99 INCL Vat , a reduction of €14.54 . Thats a reduction from €45 to €34 ex VAT in the retail price.
3. The wholesale price will drop from €27 to €23 ex Vat .

The final pricing scheme will appear here in the PENDING Changes File by early Feb at the latest. McRedmond has not mentioned any changes to the headline Installation costs which will probably go up to pre discount levels, €199 wasn't it ? Meanwhile he was banging away about how they are cheaper yadda yadda.

Eircom will still have the most expensive line rental and installation charges in the EU after this so the TCO in a year will be the highest as always.

M

Dangger

Nevertheless, this is very good news.

shinzon

Originally posted by Dangger
Nevertheless, this is very good news.

For those that can get it that is

Shinzon was having a very good day until yet again eircom rubs it in my face

GRRRRR

:mad: :mad: :mad: :mad:

Shin

Gerry

So, they have cut the retail rate by 20%, but the wholesale rate by only 14.8%.

Surely the regulator should tell them to cut the wholesale rate by the same percentage?

What I'm saying is that it is unlikely that any wholesale operator can afford to match eircoms retail price now.

MDR

Indeed its sounds like the margin squeeze issue may rear its ugly head again,
although some quick sums,

On the €27 wholesale rate:

Eircom offered a product which cost 203% of the wholesale price (€55)
Esat offered a product which cost 185% of the wholesale price (€50)
UTV offered a product which cost 175% of the wholesale price (€47.5)

On the €23 wholesale rate:

Eircom will offer a product which costs 173% of the wholesale price (€40)

Now given the figures above UTV will probabily be able to offering a product
weighing in at the same price (and no doubt Esat they will cut their margins to
match Eircoms I am sure), therefore margin squeeze may not become an issue ...

we will have to wait and see.

Praetorian

Eircom are cutting their margin, and are expecting (forcing) Netsource and Esat BT (Radsl) to do the same. Most companies will accept a cut in their profit margin once sales increase enough.

bk

I'd assume that the price reductions applies to existing customers also, not just new customers.

Also I heard a rumour that Eircom are planning to raise the cap to 8GB, I don't know if this is true, but I wouldn't be surprised if it is.

I'd also wouldn't be surprised if Eircom launch a 1m residential service by the end of the year.

echomadman

1. The price cuts take effect 01 March
2. Headline price for 512k RADSL will be €39.99 INCL Vat , a reduction of €14.54 . Thats a reduction from €45 to €34 ex VAT in the retail price.
3. The wholesale price will drop from €27 to €23 ex Vat .

Any news of a price reduction for those of us paying 169+Vat per month for their 1Meg service?

Mr_Man

According to the IT the connection fee will be 'cut' to 60 Euro when the current promotion ends, down from the original 150 Euro.

In the same article McRedmond claimed thw cut in the BB cost would make Ireland the 5th cheapest for BB in the EU - is this really the case ?

M.

Xterminator

I called Eircom sales today, and they hadnt ever heard about the cut in prices!!!

The girl guessed it might come into place after the current 'offer' finishes at the end of february (free modem, free home install, 1st month rental free).

I then called Esat sales, and they said the cost of there retail offering will not be cut, as 'it wouldn't be fair to exisiting customers' according to the sales person.

X

MDR

I then called Esat sales, and they said the cost of there retail offering will not be cut, as 'it wouldn't be fair to exisiting customers' according to the sales person.

thats a load of bollox,
if Eircom cuts to €40,
Esat will have to undercut them,
the sales rep was just encouraging you to sign up now rather than later.

Urban Weigl

Originally posted by Mr_Man
In the same article McRedmond claimed thw cut in the BB cost would make Ireland the 5th cheapest for BB in the EU - is this really the case ?

McRedmond is lying (again). Unless they planned to cut it to between 20 and 30 euros (incl VAT).

vinnyfitz

According to today's Irish Times the connection fee will be €60 once the new rate kicks in.

machalla

From my reading of this the new prices have to be approved by Comreg first and if so will come into effect on March 1st of this year. So you're kind of wasting your time calling anyone about this at the moment. Whens it approved all existing customers rate will drop to the new rate.

Just to clarify for anyone who hasn't gotten all the details.

dahamsta

IrelandOffline should take an ad in the Irish Independent saying simply:

Eircom's David McRedmond Is A Big Fat Smelly Fibber

It's not like the langer would be in a position to sue; but even if he did, discovery'd be a hoot. I'll pledge a hundred towards the ad and a hundred towards the defense fund right now.

Might be an idea to leave out Fat and Smelly, since there's a possibility he isn't. And make sure to add about four long paragraphs of small print, just to get the muppets in legal back.

adam

shinzon

Eircom's David McRedmond Is A Big Fat Smelly Fibber

hmm i heard hes a bit of an armpit bandit

shin

Ripwave

Originally posted by MDR
the sales rep was just encouraging you to sign up now rather than later.

IOLBB today is cheaper than eircoms proposed new prices:

The minimum contract is 12 months:
IOLBB today will cost €49.99 * 11 = €549.89 (1st month free, free connection, free ethernet/USB modem)

eircoms proposed new price is €40 * 12 + (€60 +VAT) = €552.60, and we don't know if that will include a modem or not.

So if you like the look of this new price, there's no point in waiting until March.

bk

Originally posted by Ripwave
IOLBB today is cheaper than eircoms proposed new prices:

The minimum contract is 12 months:
IOLBB today will cost €49.99 * 11 = €549.89 (1st month free, free connection, free ethernet/USB modem)

eircoms proposed new price is €40 * 12 + (€60 +VAT) = €552.60, and we don't know if that will include a modem or not.

So if you like the look of this new price, there's no point in waiting until March.

Just one or two points.

The installation wholesale price is increasing to e60, however that isn't to say it will be passed onto the consumer.

When the RADSL products first came out, the wholesale installation price was e150, but most companies charged the customers e99 for self install, the rest of the cost can be absorbed over two years (I believe according to UTV).

When the promotion was introduced the wholesale installation charge was e20. This allowed the companies to give free install, free modem and free first month rental.

At the new e60 wholesale install price, it should be easy for the companies to continue with the free install and modem, however they will probably drop the first month free (or perhaphs give one month free, with a e50 install).

To put this another way during the promotion, the companies costs looked something like:

Free Install: e20
Free Modem & filters: ~ e50
Free First Month: ~ e45
Total: ~ e115

Now it will cost:

Free Install: e60
Free Modem & filters: ~ e50
Total: ~ e110

Of course these are just estimates, but I do believe that they would pan out.

The question that needs to be asked, will the price reduction be passed onto existing customers (it'd better). If it will be, then it would be in your favour to sign up now, as you would get the first month free and therefore would probably never even pay the current rate.

Ripwave

Originally posted by bk
The question that needs to be asked, will the price reduction be passed onto existing customers (it'd better).

I've heard (from someone who knew there was a price cut coming, but who was optimistic about the new price) that the new price will be for a new "product", and existing customers will be "upgraded", either to a higher cap, or a higher speed (or both, as the vast majority of users aren't bothered by the cap).

You can probably get switched to the "new product" if you kick up a fuss, but otherwise you'll continue to be billed €54.45 for the "new, improved" DSL.

lynchie

Originally posted by Ripwave
I've heard (from someone who knew there was a price cut coming, but who was optimistic about the new price) that the new price will be for a new "product", and existing customers will be "upgraded", either to a higher cap, or a higher speed (or both, as the vast majority of users aren't bothered by the cap).

Heard this too.. Have been told by a few ppl that the 1mb uncapped enhanced service was being upgraded to a 2mb service in march. Anyone else hear this?

irish life

This has probably been answered already. If I order broadband now and get free first month and installation, will I then have to pay €40.00 a month from then on???

Ripwave

Originally posted by irish life
This has probably been answered already. If I order broadband now and get free first month and installation, will I then have to pay €40.00 a month from then on???

It hasn't been definitively answered becase nobody knows. The rumours coming from within oreillycom suggest that no, you'll continue to pay €54.45, but you'll get "more" than new customers get (1 1MB connection instead of a 512K connection).