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Competition dearth in Irish telco market

25-09-2002 8:39am

#1

dahamsta

Banned (with Prison Access) Posts: 16,659 ✭✭✭✭

Join Date: October 2000

Posts: 15270

ENN

The lack of competition in the Irish telecoms market has kept the price of broadband, mobile and corporate communication services high, according to IDC.

An IDC report says 38 percent of large Irish organisations (over 500 employees) are expecting to pay less for voice telephony in 2002 than they did in 2001. However, almost as many Irish firms (31 percent) believe their overall telecoms expenditure will be higher this year compared to last year, with only 23 percent of organisations taking the opposite view.

Meanwhile, the economic downturn has had very little effect on business communications costs, IDC said, with only 6 percent of organisations expecting to spend less than originally budgeted on telecom costs. Twenty-seven percent of Irish companies will spend more than their original budget, and more than 44 percent of large companies in the Republic, or those employing more than 500 people, will overspend their telecoms budget.

IDC consultant John Gilsenan said that the overspending by many organisations suggested that prices were not falling as quickly as expected. "This underlines the low level of competitive pressures in the Irish market," Gilsenan added.

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