Sunday Business Post : wholesale price ADSL price to be 28 euros

williamb

Not on their website yet, but the Business Post have a story quoting Eircom spokesman Gerry O'Sullivan that the wholesale ADSL price will be 28 Euros, giving Eircom the same profit margin as their existing ADSL product, of around 38%.

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making eircoms current offering easily betterable

parasite

is this reasonable ?

Deu

What section in the paper?

segadreamcast

This is exciting enough news - if it happens, we can assume that Eircom's 45 euro ex-vat package can be undercut by anywhere between 5-10 euro, right?

Now - if more lines pass the DSL tests... I think we're set to enter some kind of broadband era. 45 Euro Inc VAT from UTV or the like for a 512/128k package would be fairly consumer-friendly.

sceptre

Link

PiE

That seems a very positive attitude from Gerry O'Sullivan... maybe Eircom have finally realised it's gonna happen sooner or later and they may as well get a head start on the rest.

Don't like the way he implied the current service is €89 though, most people would assume that means inc. VAT ;\

Jorinn

As long as someone offers no cap, or a reasonable cap. With eircoms cap I could um, attempt to download a set of complete linux iso's but then be charged extra to browse the net.

bricks

Introduce at a really high price and then be the heros for reducing the cost dramatically.
My guess is they will now try to grab as much of the market as posible. This is probably also the time when NTL will jump back in and try to get their stuff going. i.e. once they see the demand generated.

spongebob

Originally posted by bricks
This is probably also the time when NTL will jump back in and try to get their stuff going.

. No...not really...ever.

Boston

I actually believe this, since a wholesale price of around this would have to be introduced for the 45 ex vat product.

One question, where does this leave esat who are using unbundled lines to provide their service. I doubt they will be able to compete without undercutting themselves

Btw NTL are gone as far as broadband, dont expect anything from them. Maybe that stupid digibox internet thing, but i can't see it happening here before the uk.

SkepticOne

"This is not a game for Eircom. If we did not intend to go ahead with our plans for broadband, we would be setting ourselves up for a big fall."

We shall see. Proof is in the pudding. Certainly, if 28 euros is the wholesale price, it will be hard for ComReg to reject them on the basis of "margin sqeeze". Nevertheless, it is very important that ISPs other than just Eircom.net are able to resell the product.

SkepticOne

He said Eircom was also committed to providing flat rate internet access. Under a directive from the telecoms regulator, the telco has to offer a wholesale flat rate service by next month to allow rivals to offer their own packages by June.

Never thought I'd hear this coming from Eircom. LOL.

ando

This is probably also the time when NTL will jump back in and try to get their stuff going

bwahahahahaah ... ah man, that .. hahahahaha.. cracks me up


seriously, what's up with eircom ?

BoneCollector

My guess is they will now try to grab as much of the market as posible.

Certainly, if 28 euros is the wholesale price, it will be hard for ComReg to reject them on the basis of "margin sqeeze".

One major prob on both counts
ercom could say there launcing a DSL package for FREE!!!
and Launch it, and tell the regulator.. "Look! where offering free and no ones buying??"

This is probably because anyone that wants it cant get it cuz there exchange is not DSL enabled?
So they can still justify that no one is interested cus no ones buying, but never admit its because people cant access the service there advertising.. Unless this is going to change dramicaly in the next 4-6 weeks??

Ardmore

This is probably because anyone that wants it cant get it cuz there exchange is not DSL enabled?
So they can still justify that no one is interested cus no ones buying, but never admit its because people cant access the service there advertising.. Unless this is going to change dramicaly in the next 4-6 weeks??

As there are tens of thousands of people on DSL enabled exchanges today, I think you must be a little bit confused.

Fergus

I reckon eircom are trying to principally stop other operators from deploying their own DSL in exchanges with LLU etc. If they go in with a low wholesale DSL product, it makes it much more difficult for an OLO to justify investing in their own DSLAMs etc. The idea is to maintain a 100% monopoly on DSL supply at wholesale level. Leverage their economies of scale.

And the more DSL subscribers are connected via eircom's DSL network, the less feasible use of the Fiber Rings project backbone becomes for other operators.

SkepticOne

Originally posted by Ardmore
As there are tens of thousands of people on DSL enabled exchanges today, I think you must be a little bit confused.

I wonder, though, if this proposed service, if it comes to pass at all, will be available out of all the currently enabled exchanges initially. My understanding is that RADSL will be the technology to be used.

wormhole

As there are tens of thousands of people on DSL enabled exchanges today, I think you must be a little bit confused

if you think being on an enabled exchange is enough to get
adsl then your confused.
line test failures amongst those brave (deluded) souls who
wanted the package as it is now seem very high
if a reasonable cost package becomes available the high demand
will reveil the true state of the phone network and if 50% of
applicants can pass the line test i'd be very supprised.

K!LL!@N

There seems to be a lot of concern about people on enabled exchanges still failing line tests. As far as i know, i'm on an enabled exchange ( Dun Laoghaire ), my mate in the next street currently has i-stream ( he got on the trial and couldn't give it up ). I on the other hand failed the line test even though i'm actually closer to the exchange.

Anyways, I think that someone should keep a record of people who are interested in adsl but fail the line test. This could then be thrown in the face of eircom, if they turn around and say there's no interest. I'm really hoping this won't be the case though. I think eircom are out to get the jump on their competitors and will sign up anyone that's willing, and able, to jump aboard.

Killian

aidan_dunne

Repeating myself from this thread here:

http://www.boards.ie/vbulletin/showthread.php?s=&threadid=78258

Hmmm, €28 wholsesale would be quite nice but this is Eircom we're talking about here so I honestly can't see it being that low.

Still, if this were true..... C'MON UTV, give us ADSL with no cap for €40. You know you want to. Even ADSL for that price with somthing like, say, a 10GB cap and bandwidth throttling after that would be good.

aidan_dunne

Actually, I just did some calculation and, at that price, UTV wouldn't be able to offer €40 ADSL. Damn! Unless it's €28 inc. VAT which, of course, it's not.

<Note to self> Remember to put brain into first gear before posting in future!<Note to self>

BoneCollector

C'MON UTV, give us ADSL with no cap for €40

to be honest, i cant see NO CAP
since all us irish internet users have been starved for the past few years with NO friaco, NO broadband.
If we where presented with a plate of Broandband with added NO CAP! we would be ravenous! :eek: just like a Wild Pack of dogs!! to say the least

I think we may need to be weened 1st untill we get use to the idea
maybe a 6GB for starters would be nice

neverhappen

eircom have said that e28 would maintain their margin at the same level as their current broadband offering, however (to my knowledge) no OLOs have been reselling istream at those margins.

Given that a retail price of e55ish should generate a lot of interest, does comreg need to force the wholesale price lower (and thus margins higher) to ensure that competition is created/maintained in the consumer/soho dsl market from the start before eircom captures the whole lot ?

parasite

yeah, it's going to be hard to change the habits of a lifetime, i.e. not leaving it idle for a single second, having about 10 windows open simultaneously etc ..
they've only themselves to blame :0

Dustaz

Originally posted by neverhappen
eircom have said that e28 would maintain their margin at the same level as their current broadband offering, however (to my knowledge) no OLOs have been reselling istream at those margins.

VIA networks DSL is a reselling of i-stream afaik.

flamegrill

Originally posted by Dustaz
VIA networks DSL is a reselling of i-stream afaik.

Correct.

spongebob

Originally posted by flamegrill
Correct.

in Dublin.......................only.

parasite

i just heard noel o'flynn t.d., on the "fish 'n' fones" committee, and he was just back from a junket in seattle looking at broadband, nicely critical of eircom, saying a price of 45 plus vat, he's going to request a wholesale price of 15 yoyo's with a view for low 20's retail, for what his view is worth

edit that doesn't read well at all, can't be bothered to fix it

Boston

Originally posted by aidan_dunne
Actually, I just did some calculation and, at that price, UTV wouldn't be able to offer €40 ADSL. Damn! Unless it's €28 inc. VAT which, of course, it's not.

Why would there be vat on a wholesale product? any wholesale product infact.

25 euro as far as i can remember will buy the isp a port in the dslam. Then you have the cost of suppling your own bandwidth, or paying for eircoms. Then the cost of equipment, then employ costs. all coem to getter for the total price, which is then subjected to vat. As you can see the more people that use the service, the lower the average costs. But there are always certain fixed costs

exiztone

That's great news!