Several telecom operators threaten to leave IBEC

dahamsta

Several telecom operators threaten to leave IBEC
By Jamie Smyth

Several telecoms operators are considering leaving the employers' body IBEC over concerns that it favours dominant firms such as Eircom, Digifone and Vodafone in policy issues.

The operators, which are understood to include Esat Telecom and Nevada tele.com, are furious about attempts by IBEC to propose a series of amendments to the Communications Regulation Bill.

The Bill, which is set for a final reading in the Dáil this Thursday, includes a range of stiff penalty provisions including fines of up to 10 per cent of a firm's turnover, if it breaches the terms of its licence.

This would mean companies such as Eircom, if found guilty of breaking the terms of their telecoms licence, could face fines of up to €254 million on prosecution.

These penalty provisions have already been the subject of controversy as they were taken out of the first draft of the Bill following advice from the Attorney General. However, they were reintroduced as an amendment when the Bill was read in the Dáil.

The Bill would also create a new commission to replace the Office of the Director of Telecommunications Regulation. This body would have greater power to force operators to act in a non-discriminatory manner, and has been heralded as a piece of legislation that would promote extra competition. But a subcommittee of IBEC's telecoms division, which includes Vodafone and Eircom representatives, has proposed a series of amendments that would substantially reduce the level of fines that could be levied on operators.

A draft document circulated to IBEC members last week proposed lobbying the Government to reduce the fines and give owners of infrastructure greater rights over whether they should give access to competing firms. It is intended this document should be circulated to politicians before the final reading of the Bill this week.

But several firms are opposing the amendments and have accused IBEC of pandering to its larger members such as Eircom, Vodafone and Digifone.

The head of IBEC's telecom's division, Mr Tommy McCabe, was not available for comment yesterday. An Esat spokesman was also unavailable for comment.

An Eircom spokesman said last night a majority of IBEC's sub-group on telecoms supported the amendments and the paramount issue was ensuring there was an environment which supported investment in infrastructure.

A Vodafone spokeswoman said the proposed sanctions in the Bill should reflect the seriousness of the offence.

Stonemason

Why would they be woried about huge fines if they intend to play by the book.




Stone:D

dahamsta

My sentiments exactly Stone.

adam

sceptre

Bottom line (stating the obvious) is that a fine as large as that would make it pretty much compulsory for the telcos to deliver on their promises and legal requirements.

The current fines are small enough that it's paying Eircom (pardon pun) just to pay them so they can milk their leased lines (and PSTN lines as well)

Backing off from the large fines would result in a lack of progress here for years

dahamsta

If they back off on the fines, there will be nothing left in the Bill.

The creation of a Commission will solve nothing, as although there will three Commissioners, they will have the same powers of enforcement as the current Regulator, i.e. ostensibly none; because the judicial system won't go next to near the high-end flat fines. Even if the percentage fines remain in the Bill, we'll be walking a fine line, because:

a) The onus will still be on the Commissioners to take a proactive[1] approach to promoting competition in the marketplace. Farting about with Regulation won't be enough, some tough decisions will have to be made, and enforced. This means that BOTH of the commissioners appointed next to Etain Doyle will have to have a proactive mindset. If just one decided that they should be reactive, Status Quo will do another comeback tour. And:

b) The Commission itself will not be able to fine naughty OLO's, they will have to submit a file to the DPP, who will be the ones to decide if there is a case to be brought. Any fines to be levied on Eircom will go straight to the Attorney General, who you might remember last year thought that percentage fines were unconstitutional. This is another political link in the chain that Eircom can and will worry, bribe or threaten.

If the percentage fines are removed from the Bill, there's a very high risk of me going postal.

adam

[1] Sorry, Word of the Week.