Screwed up Irish Times article 10 Feb

iwb

This is really excellent reporting.

From Todays Irish Times

'Broadband charges to drop'
By Dominic Coyle



Consumers can expect more competitive telecom tariffs in the future as fixed line operators fight for business with mobile, satellite and cable companies.

A study by KBC Asset Management (KBCAM) says Irish call charges are already low by international standards but are likely to drop still further.

"In reviewing telecom stocks for investment purposes, we have found that Ireland (along with the United States) has one of the lowest pricing differentials between fixed line and mobile," said Mr Noel O'Halloran, chief investment officer with KBCAM. "Therefore substitution of mobile for fixed line is highest."

With fixed line rental costing nearly €20 a month and the monthly charge on a mobile running from €15 depending on the package, many young people setting up home do not bother with a fixed line at all, he says.

"As a consequence of the move from fixed line to mobile, fixed-line companies must find new sources of revenue and quickly," Mr O'Halloran argues.

"That is one of the reasons they are in such a hurry to supply broadband" which was essential for both the financial services and IT industries on which Ireland was highly dependent.

However, competition on broadband provision from satellite and cable television companies should quickly exert downward pressure on prices, such as in Britain, where a range of competitive packages is on offer including flat-rate access, he argues.

Ends

First off, only the differential is low. The overall charges are higher than most other countries in Europe if I remember correctly.
Next, no one in my view is in any hurry to supply broadband.
The last paragraph is the best though. With the huge amount of satellite and cable modem access in the country, I would think Eircom are quaking in their boots now.

SkepticOne

Frightening how close to Eircom propaganda this is. Only just before Christmas, Phil Nolan went on about how regulation should be eased on Eircom due to competition from Eircom.