eircom launch residential offering €60

crawler · 23-01-2003 8:51am #1

The Cigarette Smoking Man · 23-01-2003 8:56am

More from the Times:

Eircom prepares to deliver high speed internet for €50 a month
By Jamie Smyth

Eircom will cut the price of its high-speed internet service i-stream within weeks. It plans to offer this new service using DSL technology at a monthly fee of close to €50, targeted at the consumer. The current fee for Eircom's i-stream solo product is €107 including VAT.

DSL or digital subscriber line technology is considered vital to promoting wider use of the internet and enabling a range of internet applications ranging from home working to online gaming.

It is also crucial for the provision of cheap access to the internet for small and medium firms.

The uptake of DSL services has been severely delayed by regulatory problems and the relatively high cost of purchasing a service in the Republic until now.

It is estimated that under 3,500 DSL lines have been sold to businesses and residents since the service was introduced last year, placing the Republic at the bottom of the EU in terms of DSL lines.

Eircom is expected to announce its decision to offer a consumer product possibly as early as today.

Its decision to introduce the service is not totally unexpected. Last year in an interview with The Irish Times, Mr Cathal Magee, managing director of Eircom Retail, said the firm would revisit the question of a consumer DSL service in early 2003.

The firm also faces competition from Esat BT which recently presented its consumer DSL offering in certain areas. This is available at a monthly fee of just under €50.

Eircom's decision to offer a cheap consumer DSL product is likely to have a significant impact on the domestic market. In the UK, a similar decision by British Telecom last year prompted strong growth. More than 500,000 DSL lines had been sold in Britain by December 2002 and there were 30 million DSL connections worldwide, according to the UK-based research group Point Topic.

Eircom's move to launch a consumer DSL offering will please the Government and the Commission for Communication Regulation, which this week called on Eircom to introduce a more reasonably priced DSL product.

"Current price levels are not attracting significant numbers of customers, creating the danger that Ireland will slip further behind in the take-up of broadband by small and medium-sized firms and residential users," wrote Ms Etain Doyle, chairman of the Commission, in an official paper.

Future Delivery of Broadband in Ireland also highlighted the lack of investment in the cable TV networks in the Republic for many years, and the current financial problems faced by the cable operators, removed the competitive catalyst which spurred competition in other countries, and a speedier build out of DSL.

NTL halted the roll-out of its own high-speed internet service in 2001 due to financial pressures.

But Ms Doyle argues that NTL's emergence from chapter 11 bankruptcy and the strong performance of its Irish subsidiary in recent results may prompt new interest from the firm in the direct provision of internet services.

Washout · 23-01-2003 9:02am

me wonderis that if this is indeed true will it be a new offering of 256K or will it apply to the existing package.

I ordered i-stream yesterday so Im just prayin its to the existing service

crawler · 23-01-2003 9:26am

It is Ex-Vat Skepticone...€60.50 including VAT.

rumour has it that contention will be VERY high - bad news for gamers....but you never know.

I suppose it is a start....we only have DSL a short while so any movement on price is to be welcomed....

It would worry me if it was a 128k service - placed as a replacement for ISDN - or more a revenue protector!

Tazz T · 23-01-2003 9:29am

None of these news sources seem to be focussing on the fact that it's half the speed as well as the price. I'd love to see the press release from eircom.

They're still saying up to 30 times faster - yeah, once in a blue moon.

SkepticOne · 23-01-2003 9:31am

Originally posted by Washout
me wonderis that if this is indeed true will it be a new offering of 256K or will it apply to the existing package.

I ordered i-stream yesterday so Im just prayin its to the existing service

If there's truth to these stories, then I think very unlikely that they've reduced the price on the existing i-stream 512k service. If I was forced to guess, I would say 256k at 50:1, 2 gig cap.

crawler · 23-01-2003 9:32am

I think we should get up a calculator to see how much "value for money" we really are getting.

We should use some items such as :-

the Cost per Kbps/month INCLUDING VAT
Factor in a % for caps
Factor in a % for contention
Factor in a % for "extras"

This would give us a metric for a "typical" service and we could use it to benchmark.

Dont know what people think or if anyone has the time to do this?

crawler · 23-01-2003 9:36am

Tazz T - Tony O'Reilly = Indo = eircom = valentia - you dont need to see how this came about.

I am in shock at the times article - Times = Murdoch = Sky - they NEVER say ANYTHING good about NTL, Nice one Jamie for free journalism , hope you dont lose your job over it!

bk · 23-01-2003 9:36am

Does this mean the bitstream whole sale rate has been reduced?

Otherwise how can they do this and if they have reduced the bitstream price, then surely we will be seeing products cfrom Via and maybe even UTV might start selling DSL.

I expect this move to do two things:

1) The cap to disappear or be greatly increased on the SOHO package.

2) Esat to improve or reduce the price of their DSL (remember they are on LLU and are making large margins on their current offerings).

But this is all speculation, we will have to wait for the full details of Eircoms new service before we can figure out the real impact.

spongebob · 23-01-2003 9:38am

Surely there will have to be a wholesale offering based on this 256k (presumably) product.

Eircom must make this available to its Bitstream resellers first. I can't see them make much money unless the 256k offering is pitched at €30 or so a month.....ex vat.

That affects the FRIACO cost model too.

M

SkepticOne · 23-01-2003 9:41am

Originally posted by crawler
I am in shock at the times article - Times = Murdoch = Sky - they NEVER say ANYTHING good about NTL, Nice one Jamie for free journalism , hope you dont lose your job over it!

Irish Times? Nothing to do with Murdoch. Also, what have they said about NTL that is inacurate?

Tazz T · 23-01-2003 9:42am

max 512kbps upstream 128 downstream
min 256kbps up 64 down

you can self-install for 81.81 ex VAT
Standard install 165 ex VAT

Soz can't reveal my source on this.

Washout · 23-01-2003 9:42am

If there's truth to these stories, then I think very unlikely that they've reduced the price on the existing i-stream 512k service. If I was forced to guess, I would say 256k at 50:1, 2 gig cap.

But will they keep 512k service at the current contention ratio if this is indeed the case...Interesting times ahead.

The Cigarette Smoking Man · 23-01-2003 9:45am

Originally posted by Tazz T
max 512kbps upstream 128 downstream
min 256kbps up 64 down

So your saying it's going to be a 256k or a 512k service - I could've told you that

scojones · 23-01-2003 9:46am

The installation price is a bit of a kick in the stones.

SkepticOne · 23-01-2003 9:49am

Originally posted by Muck
That affects the FRIACO cost model too.

Could you elaborate on that?

The Cigarette Smoking Man · 23-01-2003 9:49am

Originally posted by sjones
The installation price is a bit of a kick in the stones.

That covers the price of the modem - in the UK BT charge £55 (€83) for self install.

scojones · 23-01-2003 9:54am

I see, so if i called them up and ordered DSL (and if everything PASSED!) the first month would be something like €160 and then it would be €60 from then on. If flate-rate turns out to be €30 inc vat then we have dsl for double the price of flate rate. That doesn't seem too unreasonable to me.

Serbian · 23-01-2003 10:00am

Well, sounds good now, but I'd put money on a ridiculous cap a 256k line and contention will definitely be 24:1 as with all Eircom ADSL offerings.

scojones · 23-01-2003 10:03am

I forgot about the possibility of there being a cap. I must have been in another country for a few seconds there

If there was no cap I would dance for a minute or two. If there is a cap I will just do what i've been doing since No Limits was cancelled - pray, and bitch at every eircom van i see.

Tazz T · 23-01-2003 10:06am

Originally posted by The Cigarette Smoking Man
So your saying it's going to be a 256k or a 512k service - I could've told you that

What I'm saying is that it definitely isn't half price i-stream. The product is to be called eircom broadband and is a slower product. However, there's nothing mentioned about a cap.

java · 23-01-2003 10:40am

Rumours and conjecture. Why dont we wait for an official news release before getting excited or annoyed. This thread could get very large with guessing games.

Dangger · 23-01-2003 10:44am

Rumours and conjecture. Why dont we wait for an official news release before getting excited or annoyed.

Here, here. Let's wait and see. The official press release is due out around lunch time.

crawler · 23-01-2003 10:45am

Has anyone called eircom....? I called the knitting circle but clueless stuff....

SkepticOne · 23-01-2003 10:52am

Originally posted by Dangger
Here, here. Let's wait and see. The official press release is due out around lunch time.

You can get a fair amount of rumour and conjecture done in 2 hours. I say we continue speculating.

Washout · 23-01-2003 10:55am

You can get a fair amount of rumour and conjecture done in 2 hours. I say we continue speculating.

Here here... its all part of being Irish

crawler · 23-01-2003 10:59am

Hee hee - and we should make up "facts" too like - "my mate who works in eircom told me that it will be a 1mb service with 4:1 contention , no caps and the first 3 months are free , oh and installation is only €1.50 to cover post and packing" ( all prices VAT inclusive ofcourse. )

crawler · 23-01-2003 11:01am

I wonder will they have an "off the shelf , self install" ?

Tazz T · 23-01-2003 11:01am

It's called eircom broadband, it's a slower product at a lower price to 'compete' with the esat product - that's fact - not speculation.

Dustaz · 23-01-2003 11:12am

Originally posted by SkepticOne
You can get a fair amount of rumour and conjecture done in 2 hours. I say we continue speculating.

I this news before christmas and you all laughed at me

When i heard this, it was €50 for 512 at 50:1 contention. I also heard that there would be the self install option. It came from a VERY good source. Price was right anway and id say the contention is correct. Hopefully they will have the foresight to offer 512.

FYI I know a guy who was testing the self install kit and its a piece of urine to use by all accounts.

De Rebel · 23-01-2003 11:13am

i phoned 1800 512 128 just to see what they would say (why not, those free calls are about the only good value to be had from Eircom)

Biddy, in her best mullingareese "Daaats speculation. If you ring back in the afternoon it mightn't be speculation den." So there ya have it.

/aside: Muck, why are so many of the biddies from Mullingar?

Dustaz · 23-01-2003 11:15am

Eircom are denying this vehemently

"its not true. Its media speculation. Its not true. Two newspapers got it wrong, its still 107 per month."

very strange.

/edit: lol, just seen rebels post. They must have a massive idiot board that all the biddies read a script off

ITS NOT TRUE

MEDIA SPECULATION

107 PER MONTH

WHO ARE ESAT?

CitySickness · 23-01-2003 11:23am

Just to further the meaningless speculation...
I have it on good authority that the Independent reports are "inaccurate" (quelle surprise) , but yes, Eircom are indeed launching a new DSL package today. So I guess all we can do is wait for the specs...

Tazz T · 23-01-2003 11:24am

Ah, she speaks the truth - i-stream is still 107 per month. eircom broadband is a new product altogether.

(referring to the biddy in Mullingar)

Dustaz · 23-01-2003 11:26am

yet more speculation.

One thing that i couldnt mention up till now was that at the time (mid december) eircom didnt have a plan in place for shifting the 107 customers to the new price point. That sounded very bizzarre and unlikely to me, but it might be worth finding out if you can switch between the plans.

dahamsta · 23-01-2003 11:27am

Ah, she speaks the truth - i-stream is still 107 per month. eircom broadband is a new product altogether.

Ah, it's probably ISDN so.

adam

spongebob · 23-01-2003 11:28am

Originally posted by SkepticOne
Could you elaborate on that?

<speculate>
If Eircom offer Residential 256k at €60 retail they will also (must also) offer Wholesale 256k to other carriers too.

In the UK at the moment BT offer wholesale for c £15 and the ISP's offer for c £25 . Thats rough now

In Ireland we will probably see a wholesale offering for the 256k product at around €35.....the Rat has fatter margins to protect.
Am I paranoid .....or will the Rat then try to pretend that there will be 'no demand' for FRIACO (max 128k) at €30 retail....based on consnsus forecasting in the 'Dermot' thread when you can 'now' get 256k for €60
</speculate>

In other words, the specious argument that 'there is no Broadband demand' gets spun around to 'there is no FRIACO demand' instead. This is a tactical concession while Rattus Hibernicus regroups "Gerry and his Bunnies' and thats kinda what I mean Sceptic.

The IoffL press statement around lunchtime ....
<muse>
"while welcoming the market developments in the past month by ESAT followed by Eircom are nevertheless concerned that a flat rated product be introduced at the sensitive price point around <speculate>€24.99</speculate> to benefit those who spend time on line but do not have the bandwidth demands to justify 256k at the moment. "
</muse>

Back on planet, my granny loves to Yahoo IM her far flung brood, to email and to browse a bit. With a 256k product installed she now needs to learn about, Messenger Spamming, Firewalling and the rest. This is too much to expect from dear Granny who never leaves her computer on at night and will cause a shedload of layer one alarms at the local DSLAM if she has to go straight to 256k , I can confidently predict.

She is perfect FRIACO material.

Now if they would just give her a decent line at a speed higher than her current 24k she would be most happy

M

Andor · 23-01-2003 11:31am

I wonder do you have to use Eircoms hardware for der self install ..

spongebob · 23-01-2003 11:33am

Originally posted by De Rebel
i
/aside: Muck, why are so many of the biddies from Mullingar?

I normally get Kilkenny/Waterford biddies when I call. Its the Intelligent Routing behind the 1901 number so it is.

The NEW PRODUCT has a NEW 1800 number for ye to ring before the announcement.

1800 715111

Biddy Free Eircom Number , GO!

The Cigarette Smoking Man · 23-01-2003 11:34am

Originally posted by Tazz T
What I'm saying is that it definitely isn't half price i-stream. The product is to be called eircom broadband and is a slower product. However, there's nothing mentioned about a cap.

So I can be sure my i-stream bill will stay at it's current inflated price...

Originally posted by SkepticOne
You can get a fair amount of rumour and conjecture done in 2 hours. I say we continue speculating.

I agree, I just heard it was a 5Mb service and it was going to be available to everyone in the country cause Bertie said so.

Dustaz · 23-01-2003 11:34am

ROFL Muck

crawler · 23-01-2003 11:38am

Dustaz - a 512k offering for €60 odd lids. Would you put €20.00 on that? I have a VERY VERY good source that says otherwise.....well cork boy?

The Cigarette Smoking Man · 23-01-2003 11:42am

Electric News:

It is not yet known, however, whether Eircom is reducing the price of its existing DSL package or offering a slower-access package aimed at consumers.

EsatBT gave a lukewarm welcome to the reports of the new Eircom DSL service. Although EsatBT offers DSL services from various exchanges around Ireland, it does so using its own equipment which is located inside Eircom exchanges. EsatBT would rather use Eircom equipment but said that the wholesale prices are still too high.

http://www.enn.ie/news.html?code=9136275

Tazz T · 23-01-2003 11:45am

eircom is goihg to push this to market fast, tie ppl into contracts and capture the bandwidth with their customers.

UTV come on, get in there, get the wholesale product they're obliged to offer and undercut them.

Dustaz · 23-01-2003 11:45am

Originally posted by crawler
Dustaz - a 512k offering for €60 odd lids. Would you put €20.00 on that? I have a VERY VERY good source that says otherwise.....

I dont really believe it either crawler. My source is also a very very good source and he claimed that it would be 512 to squeeze esat out. Hes not a decision maker though and i highly doubt it will actually be 512, more likely 256 (altho hey, 378 is always a possibility:) )

well cork boy?

I do have access to the ban function you know

crawler · 23-01-2003 11:50am

it's 256 initally with a 512 option, but probably later on.

Could rate limit it to anything they wanted really....but they will have problems in the areas where take up will be high at high speeds at peak times.

Please dont ban me Sir , I will need IOFFL at a later date for free advertising , trolling , flaming and spaming!!

Ardmore · 23-01-2003 11:51am

Originally posted by Muck
The NEW PRODUCT has a NEW 1800 number for ye to ring before the announcement.

1800 715111

Biddy Free Eircom Number , GO!

"Welcom to the Eircom Shareholders Helpline"?????

Eircom got rid of it's shareholders over a year ago!

Scruff · 23-01-2003 11:52am

in the highly unlikely event that it is a decent 512k service, would ye swallow yer pride and bite the Eircom bullet and sign up for it or see if EsatBT or UTV can come out with a better offering in a few months?

daramullally · 23-01-2003 11:54am

More info on RTE's website -
http://www.rte.ie/news/2003/0123/internet.html

crawler · 23-01-2003 11:55am

Scruff - no I wouldnt. I wouldnt take it for free from eircom or even if they paid me to trial it ( honestly ) - but that is just me. Cost effective , reliable Broadband for the masses is the objective regardless of how I feel about eircom.

Tazz T · 23-01-2003 11:58am

I'd say a lot of ppl will jump at the chance of affordable broadband and then kick themselves when a better product comes out a couple of weeks later from an 'ethical' company. Imagine being tied into eircom for 12 months and not being able to avail of better products from better companies at better prices.

I've waited this long. I can wait a little longer.

From the RTE article: But Eircom say they have notified the regulator ComReg and are working on a new wholesale price.

Having said that, this is big step forward. FRIACO in sight and, now a wholesale price being fixed for broadband. Ireland Offline's objectives could realistically be achieved this year.

eircom launch residential offering €60

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