Result of ComReg review of Eircom's LLU monthly charge.

SkepticOne

Decision Notice and Direction is the response to consultation on draft directive 04/91.

ULMP monthly charge to remain fixed at €14.65 in real terms until December 2007.

http://www.comreg.ie/_fileupload/publications/ComReg04110.pdf

Jpaulik

ComReg has just sold us down the river. Making us slaves to Eircom for another 3-4 years. Well done to you. Well done to the 120 overpaid staff of ComReg for doing this.

viking

We look forward to these initiatives re-energising the market and enabling the provision of competitive products and services for consumers. The deployment and take-up of local loop unbundling is a key priority for ComReg and we will be taking all necessary steps to ensure its success.

Interesting viewpoint John. I expect a sharp reduction in the associative costs (survey etc) of LLU implementation if you mean what you say about ensuring its success.

If you don't, then you've just ensured that LLU is a failure for another 3 years.

...you don’t have local loop and bundling that has been done effectively here in Ireland. I know it’s on the Government agenda but we’ve got to get on with it because no-one will invest in the local loop to provide an alternative at current rates. Current costs, you just can’t afford to do it...

Bill Murphy CEO of EsatBT said that on 1st Nov 2004 (4 days ago).

Viking

spongebob

SkepticOne wrote:

ULMP monthly charge to remain fixed at €14.65 in real terms until December 2007.

Right,=so. Lets get SCHLUP up and running at €5 per line by the summer. SCHLUP is yet another Irish solution to an Irish problem.

M

thejollyrodger

so like is this a good price or not ?

ComReg sets price for eircom LLU charge
05/11/2004 - 14:23:42
http://breaking.tcm.ie/2004/11/05/story174523.html

The Commission for Communications Regulation (ComReg) today issued a Direction to fix eircom’s charge for full Local Loop Unbundling (LLU) at €14.65 per month, a reduction of 13%.

Eircom had previously sought a price of over €22 in 2003. ComReg has fixed the new LLU price in real terms until December 1, 2007.

Local loops are the copper wires connecting homes and businesses to their nearest telephone exchange. Local Loop Unbundling is the process whereby operators other than eircom take control of these loops by renting them from eircom in order to provide broadband and voice services to their customers.

The chairperson of ComReg, John Doherty, said: “Achieving the unbundling of the local loop is an important element to facilitating and enhancing competition, particularly in broadband. The resolution of this long-standing issue at a price below the one which eircom challenged last year is important.

"This reduction in the rental costs coupled with our active and determined approach to ensuring that all associated pricing and processes are competitive and user-friendly will, we believe, provide the basis to re-energise this area of the market. We look forward to working with eircom and the rest of the industry to ensure the success of these initiatives for the benefit of Irish consumers.”

SkepticOne

Muck wrote:

Right,=so. Lets get SCHLUP up and running at €5 per line by the summer. SCHLUP is yet another Irish solution to an Irish problem.

Will sub-loop unbundling regulations handle this?

spongebob

NO. We need to price every element from scratch and taking reality into account .

EG

Cost of Pole €300
Cost of space on pole €30 per annum
Cost of access to pole €0
Cost of reconfiguriing loop €20 (one off)
Cost of power €0 or €30 per annum if provided on a pairgain.

Thats it really. Come up with a simple easily enforceable unbundling plan that does not involve access to the Eircom exchanges and we have possibly got something useful . Pure LLU is a dead duck before 2008 at the earliest .....that is unless the EU intervenes quickly to investigate Comreg and Eircom collusion and thereby forces a reprice. .

M

SkepticOne

Muck wrote:

NO. We need to price every element from scratch and taking reality into account .

SCHLUP it is then. Hop to it, ComReg!

damien

I need everyone right now to email the Examiner over that biased story.

Email tcmtext@tcm.ie and jill.osullivan@tcm.ie and set them straight. Be nice about it !

I've already emailed them.

jwt

Done

John

SkepticOne

Copies also on RTE
http://www.rte.ie/business/2004/1105/comreg.html

and IOL
http://breakingnews.iol.ie/news/story.asp?j=81851287&p=8y85y756&n=81851786

damien

Email: fanninga@rte.ie and news@onbusiness.ie
Same thing.

eircomtribunal

thejollyrodger wrote:

so like is this a good price or not ?

No, it is a disaster.

While in other EU countries the cable industry provides broadband competition to the incumbent telco, forcing it to roll out broadband at competitive prices, we have no cable industry doing that.

Denmark was in the same position. Their regulator therefor ordered the lowest Local Loop Unbundling prices (the price other operators can rent the incumbent telco's copper from the exchange to the customer) in Europe to emulate the effect of the missing competition. Denmark is now the Eu leader in broadband usage and availability. Japan did the same, with even lower pricing and even greater success.

Our regulator thinks he has to provide Eircom with good profits on the Local Loop rent, to encourage Eircom to invest into the roll-out....So the Irish LLU price is now set at the second highest in the EU + inflation-increase for the next years.

While it can be morbidly funny to listen to our regulator's people for some time, after a while the question arises: "Where is the nurse to bring them back to the ward?"

P.

More information on the issue of LLU is here
Graph from the article. Note: The UK regulator is just in the process of reducing BT's LLU pricing by 70%

damien

I can't stress enough how important it is that everyone that reads this, sends an email with their opinions to the Examiner and RTE about this, and any other outlet that copies and pastes this press release and calls it a story.

Every single email on this counts. I want anyone who has emailed the outlets listed to just post here that they have done so. I suggest that each of you demand them to ask IrelandOffline for a comment and that they do a followup story on it, otherwise it is a disservice to every consumer in Ireland.

Damien.

eircomtribunal

Muck wrote:

Pure LLU is a dead duck before 2008 at the earliest .....that is unless the EU intervenes quickly to investigate Comreg and Eircom collusion and thereby forces a reprice. .

M

Whom would one approach there?
P.

spongebob

Not sure if we have a commission at the moment. It was a Finnish guy with responsibility for the Information Society....or his staf......who was responsible

The PRO is michael.mann@cec.eu.int

See http://www.europa.eu.int/ for details.

M

SkepticOne

Erkii Liikanen was the Commissioner.

Here's the current line-up:

http://europa.eu.int/comm/dgs/information_society/directory/index_en.htm#dirB

Directorate B would be the relevant one.

damien

LLU decision by ComReg disastrous for broadband in Ireland

In a statement today, Internet pressure group IrelandOffline berated the Commission for Communications Regulation (ComReg) on their recent decision to fix the Unbundled Local Metallic Path (ULMP) price at EUR14.65 per month.

ULMP, the price other telcos pay the incumbent operator for access to each copper pair which connects homes and businesses with their nearest telephone exchange, is at the core of the Local Loop Unbundling (LLU) process. The telcos can then offer a large range of voice and data services to their customers utilising this copper line. LLU is internationally recognised as a key method of creating and sustaining true competition in the telecoms sector.

LLU pricing has been mired in legal battles between Eircom and ComReg for a number of years. This has created an unstable and unsuitable environment for other telcos to invest in. Most European and OECD countries have meanwhile progressed by lowering prices significantly and reforming the overall process to the benefit of new telco entrants.

"Eircom have bitterly contested any change to the byzantine LLU procedures which could simplify or cheapen the process of other telcos releasing true broadband products." IrelandOffline Chairman Damien Mulley said. "A simple and affordable LLU process is long overdue in this country. The Information Society Commission recognized the need for a reality-based LLU charge, the Oireachtas Committee on Broadband recognized it, the other telcos need it but ComReg have now effectively condemned LLU to obscurity."

IrelandOffline committee member John Timmons stated, "The fact that ComReg have been quoted as saying that the new price is going to energise the market is fantasy. It is in reality nothing but detrimental to an already weakened market. The regulator needs to genuinely facilitate competition and is performing a major disservice to broadband rollout in Ireland with their spin. The facts are obvious: Ireland is two years behind almost every other country with regards to broadband rollout. Guaranteeing the second highest LLU rental price until 2008 is not how the market becomes more competitive."

Timmons also noted the upcoming review of ancillary charges by ComReg: "ComReg is currently reviewing the charges for a bewildering array of services related to the LLU process. Currently, there are over 50 separate charges that a telco must pay before they enable one single exchange. It is IrelandOffline's expectation that these charges and services will be drastically simplified and reduced in price, to make up for the inadequate ULMP pricing that will be in use."

LLU was intended to be the primary mechanism for driving down prices and introducing competition in the market place. The failure to introduce an effective LLU framework represents a major disappointment by ComReg in respect of its core objectives to the detriment of both business users and consumers. IrelandOffline calls on the Minister to urgently review this abject failure and to use his prerogative of intervention to drive this essential and overdue change.

dahamsta

<applause>

damien

http://www.rte.ie/business/2004/1109/comreg.html

'Local loop price still too high'

Internet pressure group IrelandOffline has criticised last Friday's decision by communications regulator ComReg to fix Eircom's charges for Local Loop Unbundling at €14.65 a month.

This is the price other telecoms companies will pay for access to the copper connection between a local telephone exchange and a customer's premises.

IrelandOffline's John Timmons said the price, which has been fixed in real terms until December 1 2007, was 'nothing but detrimental to an already weakened market'. Mr Timmons said the new price was the second highest in Europe.

The group said the legal battles between Eircom and ComReg over the issue had created an unstable environment for new operators.

In its decision on Friday, ComReg said it was aware that some operators thought the price was too high, but added that it also had to encourage efficient market entry and allow Eircom a reasonable return on its costs.

Mr_Man

Guys,

I think you've blown the VIP trip to next years Comreg consumer meeting.

M.

jwt

And more media

Ministerial intervention needed 'now' on local loop


09.11.2004 - Communications minister Noel Dempsey has been called on to immediately intervene in response to the decision by the Commission for Communications Regulation (ComReg) to fix the cost of local loop unbundling (LLU) at €14.65 a month until 2008. Lobby group Ireland Offline told siliconrepublic.com that the excessive costs Eircom charges operators for not only unbundling the loop but actually accessing a local exchange are preventing the onset of broadband competition in Ireland.
Last week, ComReg set the monthly rental price payable by operators to Eircom at €14.65 a month for accessing the local loop, a charge otherwise known as unbundled local metallic path (ULMP). Behind the scenes operators have vented their fury at the decision but are afraid to do so publicly for fear of attracting the ire of ComReg which could respond by ensuring future regulatory decisions are not to their advantage.

IrelandOffline spokesman Damien Mulley told siliconrepublic.com this afternoon that there are some 1,000 exchanges in this country. Out of this, however, only 40 have actually been unbundled by alternative operators to Eircom for broadband. “For example, there are some 1.7m phone lines in Ireland, of these Esat BT has only managed to unbundled 2,500 phone lines. And they are only able to do so when they can obtain a grant under the National Development Plan.”

Mulley drew attention to claims by operators that the cost of unbundling a single exchange is €100,000 when you factor in technical and legal costs. “On top of the €14.65 per line, there is a 50-step process with a charge at every step in order to unbundle a local exchange and offer a customer broadband. For example, for an engineer to actually view the local exchange it is €600 per visit. To go in and measure the exchange for installing equipment it costs €6,000 before an engineer unwinds his measuring tape.”

Mulley drew attention to Denmark, which had the same broadband problems as Ireland in terms of the non-existence of cable competition. “That country now has the lowest LLU prices in Europe. Ireland has the second LLU prices in Europe after Luxembourg and we are the second last in Europe for broadband penetration.”

Describing ComReg’s awarding of a €14.65 price to Eircom as “an abject failure” Mulley said: “A ministerial directive in the morning could change the price and energise the market.”

Earlier this afternoon, Mulley’s organisation IrelandOffline said that LLU is key to creating and sustaining true competition in the telecoms sector. It said that while most European and OECD countries have progressed by lowering prices significantly and reforming the overall process to the benefit of new telco entrants, “Eircom have bitterly contested any change to the byzantine LLU procedures which could simplify or cheapen the process of other telcos releasing true broadband products."

Mulley said: “A simple and affordable LLU process is long overdue in this country. The Information Society Commission recognized the need for a reality-based LLU charge, the Oireachtas Committee on Broadband recognized it, the other telcos need it, but ComReg have now effectively condemned LLU to obscurity."

IrelandOffline committee member John Timmons stated: "The fact that ComReg have been quoted as saying that the new price is going to energise the market is fantasy. It is in reality nothing but detrimental to an already weakened market. The regulator needs to genuinely facilitate competition and is performing a major disservice to broadband rollout in Ireland with their spin. The facts are obvious: Ireland is two years behind almost every other country with regards to broadband rollout. Guaranteeing the second highest LLU rental price until 2008 is not how the market becomes more competitive."

Timmons also noted the upcoming review of ancillary charges by ComReg: "ComReg is currently reviewing the charges for a bewildering array of services related to the LLU process. Currently, there are over 50 separate charges that a telco must pay before they enable one single exchange. It is IrelandOffline's expectation that these charges and services will be drastically simplified and reduced in price, to make up for the inadequate ULMP pricing that will be in use."

The lobby group added that failure to introduce an effective LLU framework represents a major disappointment by ComReg in respect of its core objectives to the detriment of both business users and consumers. It concluded by calling on the Minister for Communications, Marine and Natural Resources, to “urgently review this abject failure and to use his prerogative of intervention to drive this essential and overdue change.”

By John Kennedy

damien

Mr_Man wrote:

Guys,

I think you've blown the VIP trip to next years Comreg consumer meeting.

M.

Who knows ? By this time next year Adam might have his ass mark carved into a commissioners chair.

damien

Well done to Moriarty, JWT and Elana for putting a lot of work into this press release.

spongebob

damien.m wrote:

Who knows ? By this time next year Adam might have his ass mark carved into a commissioners chair.

The Third Policeman :eek: .

M

jwt

Mr_Man wrote:

Guys,

I think you've blown the VIP trip to next years Comreg consumer meeting.

M.

Well seeing as being reasonable and respectful achieved absolutely zip, you never know......

Next step is to try the Eircom approach to ComReg, treat them with disdain and contempt with a large dose of derision. That'll probably land us a Christmas hamper

John

Xterminator

Perhaps we need to organise a lobby of our local TD's to see if we can encourage ministerial intervention? Some thing along the lines of the email campaign to the news orgainisations?

After all, criticising ComWreck now the decision is taken smacks of shutting the stable door after the horse has bolted! (but does feel good i admit!)

X

jwt

After all, criticising ComWreck now the decision is taken smacks of shutting the stable door after the horse has bolted! (but does feel good i admit!)

long before the horse bolted we saw this looming large on the horizon.

We submitted our concerns, voiced our worries, aired our views, told the world and generally did our best to make it an issue and raise some concern.

Comreg blithely ignored us (as per usual) and went right on ahead setting an extortionate LLU charge.

John

Moriarty

What JWT said ^.

ComReg have ignored us at every opportunity. It's not been from lack of trying on our part.

flamegrill

Um I hate to be negative. And I agree that the LLU cost is too high. But what if the 100k, 50 step process was 10k and 3 steps. Wouldn't this fair far greater in the long run in making LLU a viable option? Just wondering what peoples thoughts are. Sorry to drag this off topic. But always good to have another slant on the ongoing conversation.

Paul

Moriarty

flamegrill wrote:

Um I hate to be negative. And I agree that the LLU cost is too high. But what if the 100k, 50 step process was 10k and 3 steps. Wouldn't this fair far greater in the long run in making LLU a viable option?

Uhm. That's what weve been saying.

flamegrill

K, but are you not rabbiting on about the monthly cost a bit much then?

Moriarty

This decision notice was soley for the monthly ULMP cost.

They say they'll have another decision/consultation for all other LLU costs 'soon'.

It makes sense to focus on what is actually been spoken about at the time, non?

flamegrill

I would agree aye. I know I'm a bit late on the scene this evening , but I'd have put more of a slant on it. Mentioning that yet again this is another poor decision and god knows what they will do with the rest of the other costs involved in LLU.

But anyways, twas great press coverage. We need to get Damo on the TV

jwt

flamegrill wrote:

Um I hate to be negative. And I agree that the LLU cost is too high. But what if the 100k, 50 step process was 10k and 3 steps. Wouldn't this fair far greater in the long run in making LLU a viable option? Just wondering what peoples thoughts are. Sorry to drag this off topic. But always good to have another slant on the ongoing conversation.

Paul

flamegrill wrote:

K, but are you not rabbiting on about the monthly cost a bit much then?

yeah we are rabbiting on about it , more or less because if we don't then Comreg will keep on doing whatever they/eircom feel they want to.

The ancillary charges are next, and again we will rant and rave.

FIA is still out there, waiting in the wings, MANS/Enet, potential 1.8bn in backhanders, Europe s.i. compliance, CDMA licenses, lack of line failure reviews figures, FRIACO not revisted (even Eircom were suprised that this hadn't happened see SEC filing) the list is endless. I'm sure Peter can chime in here with a much more comprehensive list.

oh and don't forget they never even bothered to invite the largest consumer lobby group to their self gratifying shindig.

So basically this is one of many Comreg failures and we will continue to apply pressure across all these points for the foreseeable future.

As well as continue to expose Eircom deceits, show the DMCNR what we think they should do, continue to raise awareness of the oireachtas report, GBS, GDS, emergent bb technology and on and on and on.

Eh did I mention we are up to our necks at the moment

Cue IOFFL recruiting advert...............


John

eircomtribunal

Noel has already indicated that he does not want to get involved... He hopes the MAN's will be the ALTERNATIVE to the last mile network. See and listen here

P.

eircomtribunal

There's a transcript of the Prime Time broadband programme on the new comwreck blog
Always worth a read.

P.




There's a worthwhile ethos column on broadband etc.

dahamsta

That video clip is fantastic Peter! You're your own little MoveOn.org!

adam

damien

Xterminator wrote:

After all, criticising ComWreck now the decision is taken smacks of shutting the stable door after the horse has bolted! (but does feel good i admit!)

Not at all. This is not about senseless point scoring for the sake of it. This is a very important issue that needs highlighting. This is what we have been doing before and after the decision was made. The press release if you read it again contains more than just commentary about this pricing. It highlights that all parts of LLU pricing structure needs fixing. It states where we really are now and it tells people not to swallow the ComReg spin.

damien

flamegrill wrote:

I would agree aye. I know I'm a bit late on the scene this evening , but I'd have put more of a slant on it. Mentioning that yet again this is another poor decision and god knows what they will do with the rest of the other costs involved in LLU.

Our Press Releases are factual and we don't wildly speculate. This is what earns us repeated interviews from respected journalists.

damien

http://www.businessworld.ie/bworld/livenews.htm?a=1041292

Mr_Man

Part of the IOFFL press release was reproduced in the Businnes Section of the Irish Times to-day. While it was a small piece in one of the sidebar columns, all coverage is to be welcomed.

M.

query

http://www.comreg.ie/_fileupload/publications/PR121104.pdf

SkepticOne

query wrote:

http://www.comreg.ie/_fileupload/publications/PR121104.pdf

Good stuff. ComReg may be good for something afterall.

damien

query wrote:

line share

Created a new thread on this.