ComReg looking at splitting Eircom in two

h0stn0tf0und

Rte Onbusiness

Comreg cant do it but the courts could.

ComReg warns that the option would not provide a quick and easy solution, and could reduce investment and cause disruption in the industry. It says Eircom could cut back on investment in the short term, cause disruption in the industry and result in reduced investment in infrastructure from alternative telecoms firms.

Eircom could cut back?!

What do you all think of this?

damien

The regulator says the move would also encourage competition in advanced broadband services, allow more deregulation and prevent Eircom from leveraging its market power from one sector of the telecoms arena to another.

All things they can do now with better regulation. I love how they're back to the old "but we don't have the power" excuse too. If you don't have it ASK for it. An FOI request to the DCMNR would see what input they've been giving to the upcoming Telecoms Bill.

Given all the excuses they've already been generating like in your quote above, it says to me that they're not going to go forward with this idea. Sabre rattling at most and with with tinfoil sabres. Leaves rustling together would generate more noise.

De Rebel

This little piece of kite flying was put in so that ComReg could answer "yes" if ever asked the question "has ComReg ever considered splitting Eircom into Wholesale and Retail entities?"

Comreg has taken 3 years to get around to introducing something as simple as a minimum standard for data over analogue lines. This is a "universal" standard that in Ireland will only apply to 93% of the lines, proving that ComReg is not alone a weak regulator, but also has a very poor command of the English language. The standard being introduced in 2005, with full compliance target for 2012. The standard was internationally agreed in the mid 1990s', so it will be almost 20 years old by the time we get there. This is ComReg's alternative to telling Eircom "Fix you expensive lines, and do it soon" ComReg take this approach because if they did anything approaching directing Eircom to fix their bloody expensive lines in a short time frame Eircom would haul their ass through the courts.

With such a useless approach to what is a simple issue, do you think there is any change of Isolda mooching up to Lord Anthony and asking "Hey Anto, would you ever split the ould cash cow into its back part and its front part and make less money and give the opposition a break?"

This one would spend lots of time in court, be used as an excuse to block all other developments while "sub judice" and cost ConReg a fortune. And given ComReg's complete ineptitude in introducing change, it is probably just as well not to even embark on this route.

The DCMNR looked at the possibility of taking part of eircom back into public ownership some time ago, and declined for a lot of reasons.

Pure kite flying.

vinnyfitz

Well, Goggin used to be a Member of the Competition Authority (CA). Maybe they have now worked out how ComReg could work together with the CA to bring legal proceedings in the High Court.

Also it's impressive that our super sleuth journalists spotted this item on page 50 of the document within a couple of hours of the launch! One would deduce that ComReg pointed it out to the press and see it as an idea they are keen on get a discussion going on.

One might ask the question as to how ComReg propose to weigh up the reactions they get to this element of the consultation and when they propose to take a decision as to whether they will move on this?

jwt

Pure smoke blowing excersise, if this was a bit of software it'd be vapourware.

ComReg have as much intention of splitting eircom up as eircom becoming a non-profit organisation


John

dahamsta

MPs 'unconvinced' about need to break-up BT

By Tim Richardson
Published Wednesday 6th April 2005 16:22 GMT
A group of MPs remains "unconvinced" for the need to split up BT maintaining that pursuing the "nuclear" option should only be a last resort.

A report by the Trade and Industry Select Committee (TISC) into the Telecoms Review by Ofcom found that MPs broadly supported the progress made so far by the regulator.

TISC agreed with Ofcom that there is no need to split BT's retail and wholesale divisions as part of a major intervention to increase competition, although this was not to say that BT might not decide to divide itself sometime in the future.

Said Martin O'Neill MP, Chairman of the Committee: "We reiterate our opinion that the case for forcing BT to structurally separate has not been made, and that Ofcom's pursuit of genuine equality of access is the best way forward. It may be that equality of access prompts BT to voluntarily separate; however, that is a matter for BT's management and shareholders."

Instead, TISC agreed with Ofcom that "equivalence" - which includes giving rival telcos equal access to BT's wholesale product range - is the best way forward. Bolt on the competition generated by unbundling the local loop (LLU) and things should be hunky dory.

[...]

sed -e s/MP/TD/g
sed -e s/BT/eircom/g
sed -e s/Ofcom/ComReg/g
sed -e s/2005/2006/g
echo "H.G. Wells, eat yer heart out, bitch."

jwt

and the result of the script is............................





TDs 'unconvinced' about need to break-up eircom

By Tim Richardson
Published Wednesday 6th April 2006 16:22 GMT
A group of TDs remains "unconvinced" for the need to split up eircom maintaining that pursuing the "nuclear" option should only be a last resort.

A report by the Trade and Industry Select Committee (TISC) into the Telecoms Review by ComReg found that TDs broadly supported the progress made so far by the regulator.

TISC agreed with ComReg that there is no need to split eircom's retail and wholesale divisions as part of a major intervention to increase coTDetition, although this was not to say that eircom might not decide to divide itself sometime in the future.

Said Martin O'Neill TD, Chairman of the Committee: "We reiterate our opinion that the case for forcing eircom to structurally separate has not been made, and that ComReg's pursuit of genuine equality of access is the best way forward. It may be that equality of access proTDts eircom to voluntarily separate; however, that is a matter for eircom's management and shareholders."

Instead, TISC agreed with ComReg that "equivalence" - which includes giving rival telcos equal access to eircom's wholesale product range - is the best way forward. Bolt on the coTDetition generated by unbundling the local loop (LLU) and things should be hunky dory


H.G. Wells, eat yer heart out, bitch.



Couldn't resist sorry

cgarvey

jwt wrote:

found that TDs broadly supported the progress made so far by the regulator

Of which Party?!

dahamsta

Five gets ya ten he used some Windows app to do the search and replace. Tsk tsk.

adam

jwt

Ouch!



Does open office count?

John

dahamsta

De Rebel wrote:

This little piece of kite flying was put in so that ComReg could answer "yes" if ever asked the question "has ComReg ever considered splitting Eircom into Wholesale and Retail entities?"

I think that everyone in ComReg should be forced to work on Thursday evenings, so they don't get to watch the West Wing and get ideas above their station. Bookmark De Rebel's prediction folks, one of you will be pointing to it within the year.

jwt wrote:

Does open office count?

OpenOffice I can forgive jwt, but I should add that if you don't call it OpenOffice.org, at least one of the developers will cry like a little girl.

I should also like to add on a more personal level that OpenOffice.org is stupidest name on the planet, after "Mandriva".

adam /actually had to man sed

vinnyfitz

Opinion article in the business section.

ComReg enters the futures market

Ensuring competition is maintained could result in Eircom being split up



Comment Isolde Goggin

Niels Bohr, the Nobel-prize winning physicist, once said that prediction is very difficult, especially about the future. It would be a brave person who tried to forecast the future of an industry as dynamic as telecommunications, where so many past predictions have gone so spectacularly wrong.

Having spent almost 20 years in the industry, if I had a euro for every time I heard that video phones were the next big thing, I'd now be comfortably retired.

On the other hand, nobody predicted that the humble text message would take over the world, with over a billion texts sent by Irish users in the last quarter of 2004.

Despite the perils associated with looking ahead, it's important from time to time for a regulatory agency like ComReg to take stock, to ensure that it is following the appropriate strategy for the future, rather than trying to solve the past's problems.

Ireland is currently entering a period of significant change in the telecoms sector, with new technologies rapidly emerging. The communications sector is worth an estimated €4 billion in direct contribution to the economy each year, as well as providing over 15,000 jobs.

Since liberalisation of the sector in 1997, telecommunications prices have fallen by almost 20 per cent in nominal terms, while per capita spending has almost doubled from € 547 to € 964.

This growth is largely due to mobile phones usage, which now stands at 94 per cent of the population.

The use of information and communications technologies (ICT) is also important in improving efficiency and productivity in the economy in general; the Organisation for Economic Co-operation and Development (OECD) estimates that it contributes around 1 per cent to annual gross domestic product growth (GDP) in Ireland, the second highest in Europe.

In addition to its economic impact, the communications sector also touches almost every aspect of our daily lives. Communicating with friends and family, booking seats for the cinema or theatre, buying goods and services, listening to music and watching films have all been enabled by developments in fixed and mobile telecommunications networks.

As the industry regulator, ComReg has initiated a debate about the future of Ireland's telecoms sector. Our aim is to stimulate debate and encourage feedback on issues that may affect the sector as it develops up to 2010, and on how we should adapt regulation to cope with change.

To get a debate started, we have published a consultation paper entitled: Forward looking Review of the Irish Telecoms Sector (available at www.comreg.ie). The outcome of this debate will be used, not only to complete ComReg's formal Strategy Statement for 2005 to 2007 which will be published during the summer, but also to inform our thinking on the role of telecommunications regulation in the longer term.

We believe that there are a number of important trends that will critically affect the evolution of the telecoms sector in the next five years.

Firstly, investment is needed in next generation networks - the networks which will provide bandwidths much higher than what is currently considered "broadband".

This is imperative if consumers and service providers are to benefit from the potential of next generation networks, and Ireland is to remain competitive. There are some indications that this investment is beginning in Ireland.

Secondly, convergence is likely to take place between different aspects of the telecoms sector - between fixed and mobile, for instance, or between broadcasting and mobile.

Wireless technologies such as Wi-Max are likely to play an important role in fixed mobile convergence.

Thirdly, as telecommunications becomes more a part of our everyday lives, its importance in terms of social inclusion is increasing. As next generation networks develop the role of universal service obligations may need to be re-examined.

How these developments play out over the next five years affects, and is affected by, ComReg's actions. Our main roles are to promote competition and to protect consumers. In the ideal scenario, convergence between different "platforms" (fixed, mobile, broadcasting) would lead to the development of a competitive market where consumers are well served in terms of price, choice and quality.

In this scenario little regulation is needed, beyond technical functions in areas such as spectrum management and numbering.

On the other hand, it may be that competition will not increase without more radical measures than hitherto, to ensure non-discrimination in access to infrastructure, ranging from behavioural change up to even the separation of Eircom's network and retail businesses into different companies.

Where companies continue to hold a dominant position in a particular market, it is likely that the need for some consumer protection will remain, but there may be a trade-off between regulation at the wholesale and retail levels.

In order to shape a rounded and comprehensive strategy for the telecoms sector, it's important that ComReg gets a wide range of views on the future of the sector.

ComReg would welcome opinions from the public, industry and interest groups in relation to the scenarios and options outlined in the document. The full document is available on the ComReg website. www.comreg.ie

Isolde Goggin is chairwoman of ComReg



© The Irish Times

shoegirl

This probably will never gappen. Its rather like Railtrack. One companies looks after the infrastructure and receives payment for access to its services, the other actually runs the retail element of the services. The problem is - just like Railtrack - the pricing of the wholesale arm would be largely fixed by the regulator, so Irish telecom infrastructure (wholesale) would never be a viable target for investors. Without consistent investment AND the chance to make a profit, the company would follow Railtrack into oblivion, and probably also make just as big a mess of the infrastructure.

From my perspective, there are 3 fundamental problems with eircom:

1. Late and limited delivery of new services, sometimes years after they are widely available in other countries (for example Bitstream services
2. Enormous regional discrepancies - some areas have full range of services, while other areas languish with only very basic services
3. Overpricing of basic products which have led to the highest telecom prices in Europe

Also the problems with eircom didn't suddenly start in 1999 when the company was privatised, they go right back to the 1970s when getting a telephone line took up to 2 years, and as recently as 1994 when Telecom Eireann abolished low cost local calls (it was suggested at the time that this was done to cross subsidise lower cost international calls even though many home users didn't actually make international calls). Telecom and its predecessor P&T, were not reknowned as a customer-friendly company.

damien

From the Sunday Tribune Business Week section on back page of Business Section (no link as I typed it up):

Watchdog Bares Gums:

Comreg made a frank and rather depressing admission in its most recent report on Itish telecommunications secto.

The report noted that: "given the complex nature of most wholesale products, it is impossible for the regulator to anticipate all the ways in which access seekers can be discriminated against".

In plain English, ComReg is admitting that it has no hope of figuring out the ways in which Eircom will attempt to frustrate ither companies wishing to piggyback on its network and offer competing services, and since it's impossible to guess how Eircom will stifle the competition in advance, presumably any action that ComReg takes is reactive, so during the weeks and months of investigation, claim and counterclaim Eircom can continue to discriminate against other players.

One option the ComReg report suggested was to split Eircom into a retail arm and a wholesale business but even the regulator admits that this is a slow and messy solution. As if that wasn't bad enough, ComReg doesn't have the power to force Eircom to split in two and. although the courts do, it's hardly a likely scencario.

kasintahan

shoegirl wrote:

Also the problems with eircom didn't suddenly start in 1999 when the company was privatised, they go right back to the 1970s

They certainly have had (and still very much do) their problems but in the early to mid 80's Telecom Eireann had one of the most advanced depolyments of fiber linked digital exchanges in the world.
The reason they could afford this is because they went directly from 2nd world war tech skipping past all the electro mechanical and cross bar era's.

Now the infrastructure is owned by a mostly US consortium of investors who try to maximise their revenue and I don't blame them, that's what I'd do in their position. If the Irish people (us) want a better system then they should never have agreed to the sale of the copper without defined maintanance and upgrade terms.

SkepticOne

One of the few positive predictions one can make is that there is to be no going back to the grim days of public monopoly ownership of infrastructure with its upgrade cycles of a quarter century.