Analysts urge drop in Irish DSL prices

dahamsta

Analysts urge drop in Irish DSL prices

Eircom may have set one of Europe's cheapest prices for wholesale unmetered Net access, but the telco is under mounting pressure to roll out affordable DSL.

The telecoms regulator ComReg said last week that Ireland's flat-rate Internet access plans are on track, with wholesale prices set to come in at EUR12.77 per customer, per month. That pricing is for FRIACO (Flat-rate Internet Access Call Origination), which will let Web users use a dial-up connection to use the Internet for unlimited periods of time at a fixed monthly price.

In a new research note, Current Analysis has said that the dial-up flat-rate service would finally help increase Ireland's Internet penetration rate. But it stressed that the offering was extremely overdue, and that the real priority now is for Eircom to meet the demand of customers who want high-speed Internet access using DSL.

Sandra O'Boyle, analyst with Current Analysis and author of the research note, said that FRIACO will not last as long in Ireland as it has in other EU countries

"Eircom has found ways to frustrate the process and slow things down," O'Boyle told ElectricNews.Net, pointing to two major issues -- the expansion of DSL enabled phone lines and the cost of DSL. Eircom charges retail customers around EUR100 per month for DSL access, and it is only available in select Irish cities where telephone lines have been DSL enabled.

In the UK, BT has already done what Eircom needs to do here, Boyle says, which is to open up its exchanges and let market forces determine price.

Eircom announced on 23 January that it would cut its DSL rate for retail customers to around EUR45 in March. That offer has not yet been realised and a revised wholesale DSL package has not been offered, though Eircom is required to do so by ComReg. Competitors like Esat BT currently pay Eircom a wholesale price of around EUR55 for a DSL line, excluding connection charges, and are awaiting the revised wholesale price.

"As the incumbent operator, Eircom must move ahead with plans to deliver a viable wholesale price on broadband DSL," the report said. "Eircom cannot expect to get away with delay tactics for too much longer as EU regulation toughens and competitors demand a level playing field."

Boyle also said Eircom will need to begin offering as self-install DSL package. To gain DSL access requires specialised equipment, including a DSL modem. A self-install option would mean that instructions and the equipment would be sent directly to customers, and an on-site visit from an engineer may not be needed.

Separately, Current Analysis last month took a negative view on Eircom's launch of fixed-line SMS services, which let customers use a special Eircom cordless home phone to send text messages. Eircom has cited research that says many text messages are sent from the home, but Current Analysis argues that customers may not easily change their ways to begin using their home phone instead of their mobile handset for SMS.

MadsL

Where was this published 'hamsta??

DMT

Originally posted by MadsL
Where was this published 'hamsta??

Clcik the link at the top of the quoted part of the post (it was enn.ie).

Ardmore

Originally posted by dahamsta
Eircom announced on 23 January that it would cut its DSL rate for retail customers to around EUR45 in March. That offer has not yet been realised and a revised wholesale DSL package has not been offered, though Eircom is required to do so by ComReg.

FFS!

Are we going to get the retaliation in first this time, so that when Eircom start blaming the regulator for the delay, so called "technology journalists" understand that Eircom is the problem, and not regulation?

MadsL

Doh!!!

'Pologies - too many jars tonight...:p hic!

Stonemason

A heart warming peice tho id be happier if it came from berty himself.As for FRIACO being short term i hope so coz the net is getting harder and harder to surf using 56k.

MadsL

Ardmore predicted..

when Eircom start blaming the regulator for the delay

Ardmore, eircom are already blaming ComReg for the delay.

http://www.boards.ie/vbulletin/showthread.php?postid=793985#post793985

Ardmore

Originally posted by MadsL
Ardmore predicted..


Ardmore, eircom are already blaming ComReg for the delay.

http://www.boards.ie/vbulletin/showthread.php?postid=793985#post793985

Doesn't count. The product isn't "late" yet, and anyway, there's nothing untruthful in the exchange you refer to. (They don't know what the details are, because Eircom marketing can't make them up until it's approved).

I'm talking about what happens when Eircom start saying "you can't have it for €54 because the nasty regulator won't let us give it to you at that price".

sceptre

Hmmm, more journalists quoting this price ex-VAT (even they know very well that ordinary people pay VAT). Couldn't find a "corrections" address to mail or a contact address for the writer. Sent a mail to news@electricnews.net pointing out the VAT thing anyway.

MadsL

Ardmore sagely said:

there's nothing untruthful in the exchange you refer to.

Well actually there is..eircom are saying that they cannot tell me what their 'downgrade' service charge from iscream to istarter (or whatever they will call it) will be because it is with the regulator.

This is bull...ComReg have confirmed that is absolutely no need for eircom to consult the regulator on service charges like these. I am still waiting for a CS supervisor to get back to me with answers to my questions about downgrading to istarter when it appears. I suspect that the project manager doesn't know either.

Given that they (eircom) still haven't trained their CS people for this rollout means they are pretty comfortable with timing. Not a hope that this will be out by the end of March.

hoping I'm wrong

MadsL

SkepticOne

Originally posted by Ardmore
FFS!

Are we going to get the retaliation in first this time, so that when Eircom start blaming the regulator for the delay, so called "technology journalists" understand that Eircom is the problem, and not regulation?

Press release shortly after Eircom's original announcement:

Eircom will be aware of their obligation to provide an acceptable wholesale service so that consumers can choose their own Internet service provider (ISP). This is a requirement for incumbent operators such as Eircom in the EU. It is vital therefore, that this regulatory requirement is met if the service is to be introduced by March.

Commenting, IrelandOffline chairman David Long said, "There have been delays in the past. 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. Other countries have had consumer level broadband for five years now".

shinzon

Im getting a distinct sinking feeling about all of this, what happens if this isnt rolled out by the end of march (which it wont), does comreg enforce the rules

just another eircon con methinks


SHIN

spongebob

There is as yet no official Wholesale price.

Therefore there is no agreement between Eircom and Comreg

Therefore there is no 256k Eircom DSL product on the market at this point. If there was it would not be installed for 6 weeks anyway.

It may be all Bill Murphys fault, apparently the ESAT 256k product, available by Christmas if ye can rememmber last years vapourware, actually appears be vapourware in most areas....see this Thread Here on that subject.

So Eircom are under no real pressure on this one.

Thanks Bill

M

(If I'm proven wrong I will edit this out)

Dustaz

Muck, eircoms proposed product is a 512, not 256k service.


Also, they are starting to work on the advertising (ive seen it). This service is going to happen.

spongebob

I was musing on the real pressure for a start date for Eircom Residential Broadband.

You are right Dustaz. It will happen at 512k (down to 256k) RADSL.

I also agree with previous posters who could see the start date dragging a bit. It is March....like the Eircom press release said in January. The Eircom ADSL site has not been changed for over 3 Months now.

Their regulatory page (I was looking for a RIO amendment) has a most peculiar regulatory affairs link too , see Here

M