FYI:IBEC in the Irish Times

Gunn4r

<From Electricnews>

The Irish Times reports that price caps on telecoms services should be removed by the Government to encourage companies to invest in telecoms infrastructure and services in Ireland, according to "Investment in Telecoms in Ireland - An Ongoing Imperative", a new report from IBEC. Published on Tuesday by IBEC's Telecommunications and Internet Federation (TIF), the report recommends allowing operators to set prices that will generate sufficient returns to justify ongoing investment. Pat Galvin, director of regulatory affairs at Eircom, said removing the price cap would have an important effect on the level of infrastructure investment. The report also calls for the setting up of a broadband task force to look at new ways of promoting more widespread broadband access and usage, comprising telecom operators, content providers, broadcasters, Government representatives and others.

SkepticOne

Irish Times:
IBEC urges telecoms reform

IBEC Telecommunications and Internet Federation:
Current telecoms pricing model is inhibiting investment - Press release.

Investment in Telecoms in Ireland - An Ongoing Imperative. - Full report (pdf).

Comment: The IBEC TIF does not appear to be advocating a blanket removal of caps but rather that the pricing regime be changed to encourage competition and investment. This may mean the removal of caps in some areas.

Obviously, the removal of caps on some of Eircom's wholesale prices would deter investment and competition. For example, the wholesale price at which eircom charges OLOs for carriere preselect services. If the cap was removed here and Eircom raised the price, OLOs would be discouraged from entering the market. This would strengthen Eircom's wholesale monopoly which in turn would lessen Eircom's need to invest in infrastructure.

SkepticOne

Also two articles in The Independent and the The Examiner.

Independent: Eircom leased line price too low, says IBEC

IBEC's Telecommunications and Internet Federation wants to scrap the cap on the price which Eircom can charge for offering leased for web use.

Examiner: Telecoms cap harming firm investments

Senior eircom executive Pat Galvin claimed a large increase in the cost of line rentals will be required if the company is to develop the local access network to service households.

According to Mr Galvin, eircom?s director of Regulatory Affairs, the company is running a deficit of around £200m on its access network, a loss of £130 to £140 per customer. While the company is pushing for further efficiencies, a substantial hike in line rental charges will be necessary.

Comment: Again, the point of the report was that caps prevented other companies investing in infrastructure. In the case of leased lines, there may be a case. There is already a fairly competitive market in leased lines. However, with residential lines, it is unlikely that an increase in line rental will encourage other companies to compete and install their own local loop infrastructure.

SkepticOne

Via Ireland.com breaking news: CCI responds to removal of price cap call by IBEC. Says that due to very high cost here, there is a lack of demand and only when this is solved will there be significant investment.

CCI completely rejects IBEC's recommendation that telecommunication providers should be allowed raise the cost of services to business. Ireland is already one of the most expensive places to rent leased lines among OECD countries. This proposal would only further penalise business using such services, particularly outside the Dublin area, rather than stimulating greater demand. The use of information and communication technology is about cutting costs in business but Ireland's telecommunication infrastructure makes that very difficult for all but the largest businesses".

Also later in the press release:

"The inexplicable delays in the introduction of the Communications Bill, the fact that the local loop in Ireland is still effectively monopolised by one operator and the long delays in re establishing the Information Society Commission make a mockery of Ireland's pretension to be an e-commerce hub".

Victor

Hmmm, CCI biacth-slaps IBEC.

Boston

I swear to Christ, if eircom put up line rental, ill rip out my phone lines and use the internet with smoke signals and carrier pigeons.

hey, i might just be faster.

bkehoe

If line rental goes up, then it may be just as well for me to get Hughes Directway through Educom and dump the landline. The phone is usually only for internet anyway (most people ring on mobile), and an extra £10/month would make educom seem that much cheaper, as its always on too.

ando

Originally posted by bkehoe
would make educom seem that much cheaper, as its always on too.

did you get any info yet regarding download/bandwidth caps for the educom service ? I tried emailing them but got no responce

dahamsta

FYI, there was an article on The Reg today about a Hughes company called Bridge Broadband (Flash) and the satellite service they just launched. The base-level SOHO product is 512/128, and costs GBP£159 a month, including installation and maintenance. I wonder if this is the same product Educom are selling, and if so, why Educom feel it necessary to charge such scandalous installation and setup fees.

adam

MS

Origionally posted by «Bo§ton»

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I swear to Christ, if eircom put up line rental, ill rip out my phone lines and use the internet with smoke signals and carrier pigeons.

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Im with you on this one mate

/me stocks up on empty Bean Cans and loads of String!


MS

El_MUERkO

wan the CCI, IBEC diserves to be set on fire for spouting such waffle