How can the cost of DSL drop 50%? Can costings supplied by the Eircom be trusted?

SkepticOne

Originally posted by dahamsta
Pure speculation, of course. YMMV.

adam

Yes and we'll have none of that round here.

yellum

Originally posted by dahamsta
which suggests eircom and the ODTR colluded to deceive the OLOs and the public

OUT ETAIN OUT!

Repeating myself?

Is she worth the €157k a year she makes plus expenses ? Shes playing a blinder. At least one of the biddys is gone.

http://www.onbusiness.ie/2003/0124/comreg.html

Ardmore

Originally posted by yellum
Is she worth the €157k a year she makes plus expenses ? Shes playing a blinder. At least one of the biddys is gone.

http://www.onbusiness.ie/2003/0124/comreg.html

Is she any relation to that Alfie Kane fella?

SkepticOne

Originally posted by neverhappen
For one thing its not launched yet. Those bad people at comreg could well hold the whole thing up with that pesky requirement for a cost-based wholesale price...

Of course this will be Eircom's fault as they are fully aware of their responsibilities, as IOFFL reminded them recently on ENN:

Internet lobby group IrelandOffline says it welcomes Eircom's decision to introduce low-cost broadband for consumers, but it expressed concern that the lack of a wholesale product may cause delays in its rollout. As reported on Thursday, Eircom announced its plan to make a mass-market DSL service available from March 2003, with an intended monthly charge of EUR45 (excluding VAT). IrelandOffline has noted that Eircom's announcement said it was still working on providing a wholesale service, which is a basic regulatory requirement. IrelandOffline Chairman David Long said "In September 2001, Eircom were unable to offer businesses DSL due to failure to provide the correct wholesale product. We don't want the same to happen to ordinary consumers now; we've waited long enough."

dahamsta

Is she worth the €157k a year she makes plus expenses ?

Holy Hand Grenades Batman, that's effing loony! Am I only only one that thinks she's feckin useless?

adam

mike65

Originally posted by dahamsta
The big problem here is that there isn't enough seperation between the people who own the infrastructure and the "retail" wing of Eircom.

Y'know I had'nt really thought about that! The infrastructure
should be "owned" by the State (we all paid for it) and run by an independent body answerable to the minister.
All retail companies should be given equal access to the lines.

Mike.

dahamsta

[ Although I've said the above dozens of times here, on this occasion the attribution is incorrect -- I was quoting Ardmore from a previous post. ]

There are going to be problems no matter which route you take Mike. I certainly don't believe that the Government should have sold the infrastructure at the same time as the retail arm; and I quite definitely don't think that they should have sold it to the same company, but the other options have difficulties in their own right. They are:

- Retain the infrastructure, which will result in continued persistent overstaffing, chronically high costs, massive budget overruns, etc; all transferred ultimately to the taxpayer.

- Sell the infrastructure to a separate company, which is going to be doing the same thing Eircom is doing now, albeit without the anti-competitive retail connection.

- Sell the company to an NGO with capped profits -- which means capped salaries, capped skillsets, and thus capped innovation.

I don't agree with the former at all. The Government has no business in telecommunications any more, it's far too commercial for them. Yhey should concentrate on accessibility issues which can be handled via regulation. I think the latter would be a bad idea, since we need innovation in telecommunications in Ireland, especially now.

So I guess I favour the middle option above. There will still be difficulties, in that a for-profit company is always going to be pushing for higher profits, but with strict regulation they can be handled.

adam

zynaps

Originally posted by neverhappen
Maybe eircom knew the game was up on their per-second pricing model when the friaco order came and decided that they could make more out of dsl (still expensive for what you get what with caps etc), so moved in to take the market ?

That's what I'd say is going on...
eircom originally tried to keep demand for DSL down by keeping the price up (while arguing the converse was happening), so as to continue to reap in the dough from per-minute billing which is still in effect, and getting them a -lot- of money, as we can probably all attest to (a £500 bill for 2 months, back in 1999 was bad enough and enough of a shock for me to jump to esat's surf nolimits when it came out).

Now that friaco is pending, it's only a matter of time before they lose at least a huge chunk of that advantage, so they will try to come up with a new and improved, cheaper DSL service which will happen to coincide with the release of a flat rate product either from themselves or a competing telco.

If it works out right for them, the uninformed public will see them come out with cheaper broadband, and flat rate internet access at the same time... and with their overbudgeted marketing campaigns they will be regarded as forward thinking saviours who were probably working to give cheap internet access to all for ages.

Baahhhhhhhhhhhhh.

zynaps

hmmm

Originally posted by dahamsta
Is she worth the €157k a year she makes plus expenses ?

Holy Hand Grenades Batman, that's effing loony! Am I only only one that thinks she's feckin useless?

adam

her contract also includes up to 20% "performance related bonus". What a pity that can't be a negative figure.

b20uvkft6m5xwg

How can the cost of DSL drop 50%?

*Creative Accounting
*Supression of Financial Data
*Lavishing your Auditors w/ Corporate Gifts, Golf Outings and the likes

Can costings supplied by the Eircom be trusted?

My question is...Can Eircom be trusted?*








*No


The mind boggles alright, when you try to rationalise it all.

kamobe

How can the cost of DSL drop 50%? Can costings supplied by the Eircom be trusted?

Eircom finally doing something right, and now we're going to criticise them? Hardly going to encourage them to do likewise in the future now is it? I'm sure they can justify their prices, and all questioning them about it is going to do is make them raise it back. I think having a go at them right now is a bad thing, and they should only be encouraged for finally promoting competition.

Dangger

I'm sure they can justify their prices, and all questioning them about it is going to do is make them raise it back

I'm quite sure they can justify their prices also. The problem is can any independent authority justify them?

The question was not posed to attack, I'm genuinely interested in suggestions of what costs may have been written off, to do with DSL provision.

To fear they will raise them again becase of such questioning is I feel, a little dramatic. Are you suggesting previous discussions to drop the price actually had some efect?

Since May of last year an investment they claim has cost them over €150 million has had just under 2,200 installations. They had to do something!

spongebob

and that it is being ringfenced....maybe bacause it is vender financed or acquired on a funky lease to ensure that Charlie Mc Creevey gets nothing while the New York bankers do.

One knows not!

BoneCollector

The question was not posed to attack, I'm genuinely interested in suggestions of what costs may have been written off, to do with DSL provision.

Since the Per minute model is about to be abolished in favor of FRIACO, errcom have to now look at mass marketing there only other product, DSL.
Since it was probably the Per min model that was essencialy offseting the non infiltration of DSL and sustaining its hi price.

So the new Business model would be, to saturate the market with dsl and make it more attractive than FRIACO, because they will make twice as much on mass market DSL than with FRIACO dialup.

Its kinda what i said earlier, which was that introduction of FRIACO would drive the price of broadband down, its doing it now, and showing just how fat the cat was on per minuite internet access.

Thats my 10c worth