Letter from Minister

angryuser

Having spent the last while lobbying Minister Ahern, who lives here and is well known to me, the following letter was received today, from Mary O'Rourke, via Dermot Ahern. Unfortunately most, if not all of it was already known by members, but maybe there is 'something' in it of interest. ?
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“Thank you for your recent reprentations on behalf of Mr Ray Pearson of IrelandOffline concerning internet access in Ireland.
The EU regulation on unbundled access to the local loop entered into force on 1st January 2001. In accordance with this regulation, the obligation to provide unbundled access in Ireland falls on Eircom which, as of now, is the only operator that has been designated by the Director of Telecommunications Regulation as having significant market power in the provision of fixed public telephone networks.
In making available the local loop unbundling option it is important to ensure that the terms and conditions involved are fair to all parties concerned. In relation to costs, the regulation provides that operators with an obligation to allow unbundled access to their local loops set the prices for access on the basis of cost-orientation. There is also a clear obligation on the national regulator to ensure that charging for unbundled access fosters fair and sustainable competition.
As regards the pricing structure for access to the local loop, Eircom published its reference access offer (RAO) for full and shared access to its local loop on 31st Decmeber 2000, in accordance with the provisions of the Regulation.
However the ODTR regarded it as incomplete and non-compliant with certain aspects of the regulation, directed changes to the RAO and set interim prices for access within the range of pricing in other EU countries.
I understand that Eircom claims that these interim prices are unacceptable in that they are based on the EU average and are therefore not complient with EU law in allowing Eircom recover its costs. Eircom has commenced legal proceedings challenging the prices and methodology. However the interim prices will continue to apply until Eircom submits a revised RAO which is acceptable to the ODTR, or until the outcome of the legal challenge.
I understand that so far only one operator, Esat, has applied for access to Eircom’s local loop.
Despite this lack of takeup from the industry in general however, I understand that ODTR is now satisfied that the framework for LLU in Ireland is complete. In terms of effecting widespread access to the local loop, it is ultimately a matter for individual companies to apply for such access.
In terms of improving the nationwide roll-out of Broadband, the figure allocated to Telecommunications initiatives has been significantly increased under the National Development Plan, 2000-2006, to 200 million Euro’s compared to 26 million Euro’s under the previous plan. There is a commitment that 2/3rds of this budget will be spent in the Border, Midlands, and West Regions. A first call for proposals was run last year and on foot of submissions received the Department entered 9 contracts at the beginning of the year, which will result in additional investment throughout the Country in broadband infastructure.
The projects involved will be completed over the next 2 years and will entail overall investment of 160 million Euro’s in broadband leveraged from grant assistance of approximately 55 million Euro’s.
A 2nd call for proposals has been run with a number of applications received on 19th October last. These projects will be evaluated in the coming months.
I hope this answers any concerns you might have on this issue.
Mary O’Rourke.TD. Minister for Public Enterprise.