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Regulation Question

  • 09-08-2009 11:19am
    #1
    mk6705
    Registered Users, Registered Users 2 Posts: 721 ✭✭✭


    Very simple right.
    Why aren't UPC forced to open their network to Wholesale? I mean Eircom have to do it, Three have to do it with the NBS (Not that that'll help anyone) and O2 have had to do it (For an MVNO, not broadband but it's the same principle). Seems kinda unfair does it not?


Comments

  • #2
    lucernarian
    Registered Users, Registered Users 2 Posts: 9,235 ✭✭✭lucernarian


    Not a terrible question. I don't have a clue as to the answers however. Maybe because everywhere UPC operates, eircom operates also? Therefore they wouldn't have significant market power in its operating areas.


  • #3
    watty
    Registered Users, Registered Users 2 Posts: 32,417 ✭✭✭✭watty


    I don't believe O2 was "forced"? Could be wrong.

    Eircom is has the USO and has 96% of lines.
    UPC bought two smaller outfits that had consolidated various licences. They are geographically very limited.

    Also the concept of Wholesale eircom is a regulatory failure. It leads to no extra infrastructure and it's fake retail competition that have produced little innovation and less profit.

    It's doctrinaire rather than proven to be the "right solution" for the Consumer and the Nation.

    We see the same "Bankrupt" doctrine changing ESB from being comparitively cheap Electricity to being the more expensive in Europe so as to "encourage" Competition. How much sense is it that ESB is not allowed to reduce prices and Bord Gais is now selling Electricity?


  • #4
    Moriarty
    Registered Users, Registered Users 2 Posts: 6,007 ✭✭✭Moriarty


    Afaik, UPC would first have to be designated as an operator with "Significant Market Power" by comreg - I think UPC would have to have >25% of the broadband market for this to happen. Comreg would then have to decide that it would be worthwhile forcing UPC to open up to wholesale business.

    I can't see it happening, there doesn't seem to be much of a demand for it.


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