ComReg announces 50% cut in Local Loop Unbundling Process charges

damien

The Commission for Communications Regulation (ComReg) has today
announced reductions of up to 50% in Local Loop Unbundling (LLU) process
charges.

These reductions are part of a wide-ranging review of Local Loop Unbundling
(LLU) products that ComReg is currently conducting. As part of this process
ComReg has finalised the review of LLU process charges and has directed
eircom to amend its Access Reference Offer (ARO) with new prices to be
effective from the 1st of February 2005.

The new prices will result in significant reductions for other telecoms
operators. The price for each connection will fall by more than 50% from
February from €121.52 to €58. This will further fall to €55 per connection
when volumes of orders exceed 50,000 lines and to €49 per connection when
over 100,000 orders have been completed. The disconnection fee, which was
€49.58 and is now €39.44, will no longer apply in most cases.

Recent European experience illustrates that the provision of Broadband and
new innovative products such as voice over internet (VOIP) can significantly
drive LLU take-up. These radical changes proposed by ComReg, who have
been working closely with the industry, now provide the basis for significant
growth in the area.

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.

SkepticOne

Well done ComReg. A step in the right direction. This needs to continue with the rest of the charges.

Paddy20

Great news, it is getting better and better, and I have no doubt that a lot of credit is due to the very determined professional voluntary IrelandOffline Committee's recent meeting with Minister Dempsey.

dahamsta

I'll wait until we hear what the OLO's say. Any comments from them Damien?

adam

damien

This is just the connection fee, all the other access charges to the exchange itself remain static. Reducing the prices is always good but I'm a little concerned at the speed they are tackling the charges. It's going to be another long while at this rate before the OLO's will be comfortable with the prices I would think. Not heard a thing from the OLO's Adam.

Also the proper pricing document is not on the ComReg site yes, just the press release, which means its hard to give a proper analysis when the press ask for comments. Which they already have.

damien

http://www.enn.ie/frontpage/news-9571638.html

I also did a very short interview with Radio 1. Should be in their Business news section later.

eircomtribunal

"ComReg announces 50% cut in Local Loop Unbundling Process charges

The Commission for Communications Regulation (ComReg) has today
announced reductions of up to 50% in Local Loop Unbundling (LLU) process
charges."

Why does ComReg deem it necessary to put this type of misleading spin in nearly all of its media releases?

That's just plain dodgy.

The new connection price is welcome, but long overdue.

For it to be higher than the price Ofcom is setting in the UK (£ 34.86 = € 50.50) is not a good thing. Remember, ComReg is under the DCMNR direction to make sure that Ireland is catching up with the EU broadband average by mid 2005.

P.

damien

Consumer Lobby Group Reacts to ComReg Pricing Move

Consumer lobby group IrelandOffline today welcomed the latest charge review for Local Loop Unbundling by ComReg.

Speaking earlier today, committee member John Timmons said "The announcement today by ComReg that more LLU prices are being reduced is a welcome step in the process. However we are still lumbered with the 2nd highest monthly LLU rental charge in the EU, which ComReg will not review again until 2007. If Ireland is to be on par with the rest of Europe the pace of LLU price reviews needs to increase."

The price drop today was the equivalent of a connection fee payable to eircom for a company to connect a consumers line to their equipment. On top of this charge a company has to pay a monthly charge to eircom to have their services on the consumers line, aswell as having to pay excessively high prices to locate their equipment in the local exchange. The end result is a cumbersome and costly process for a company to pursue and profit from.

LLU is one of the key ways to enable broadband rollout and increase competition but has so far been a failure in Ireland. Despite government investment through the NDP only 2,500 out of a possible 1.7m lines have been unbundled. An EU report* on telecommunications expressed concern about the LLU process in Ireland. Across Europe those countries with competitive LLU pricing have been the leaders in broadband rollout.

IrelandOffline chairman Damien Mulley added "A significant number of charges still remain static and these need to be aggressively tackled by the regulator in order to make LLU work. This charge reduction alone will not be the enabler for LLU uptake but is a positive step nonetheless. From a consumer point of view the sooner all charges are normalised the sooner there can be broadband for all. "


* Eu Report: http://tinyurl.com/5kjab

spongebob

eircomtribunal wrote:

"ComReg announces 50% cut in Local Loop Unbundling Process charges

That's just plain dodgy.

Back in September Comreg announced a 50% cut in LLU charges that turned out to be 50% cut in 3 out of some 50 charges and not all 50.

This time they did pretty much the same thing, a piecemeal fiddling with part of the charging matrix comprising some 50 charges . At this rate they will have addressed every charge at least once by 2007 .......and we will still be nowhere .

I could put this as forcefully as it should be put with supporting links and all that but frankly I couldn't be bothered .

M