Competition Authority: Eircom not efficient

Dangger

Circle the wagons.....

From today's Irish Times:

Eircom has not done enough to improve its efficiency and the telecommunications market is not adequately competitive, according to Dr. John Fingleton, chairman if the Competition Authority.

Telecommunications was one area where the benefits of deregulations had still to come through to consumers through real competition, he said in a speech yesterday.

However, Eircom has strongly rejected Dr. Fingleton's comments with a spokesman saying that efficiency had greatly improved, feeding through to lower prices for consumers (????).

Dr. Fingelton's comments about Eircom were part of an address on competition to the Institute of European Affairs (IEA) in Dublin where he was responding to a speech from the EU Competition Commissioner, Mr Mario Monti.

"Eircom has not made the type of substantial progress on efficiency that is possible and should be required," Dr Fingelton said. Real competition had still to be introduced to the energy sector and the telecoms market, he said, pointing to a recent survey whcih has shown that Ireland ranked badly in terms of cost and availability of broadband.

However, Eircom has strongly disputed Dr Fingelton's analysis. "The efficiency is being driven in Eircom and it is leading to lower prices (????)", according to Mr David McRedmond, commercial director. Prices had fallen by 40 per cent in real terms since 1997, he said, and Eircom's staff numbers had fallen from 13,5000 to 8,5000 in the past four years. An OECD study had shown that business prices here were cheaper than in the UK, while household prices were now similar.

Eircom was now making available a low-cost broadband product through its new DSL service, he said, which, the company was confident would increase uptake in this area.

[cont.]

SkepticOne

Eircom should really take the CA to court over this! I would not stand for it. Not doing so is tantamount to agreeing with them.

dahamsta

[cont.]

I hope this isn't a misspelled comment on the spokesperson?

(Anyone noticed how Eircom SP's never want to be named?)

adam

dahamsta

In all seriousness though, I'd be interested to hear the official line on this one: Do you think this is an ominous first volley, or just more rhetoric? I can't decide meself, although obviously I think they should have grabbed Eircom by the balls and squeezed /real/ hard quite some time ago.

adam

shinzon

Eircom has not done enough to improve its efficiency and the telecommunications market is not adequately competitive, according to Dr. John Fingleton, chairman if the Competition Authority.

Telecommunications was one area where the benefits of deregulations had still to come through to consumers through real competition, he said in a speech yesterday.

However, Eircom has strongly rejected Dr. Fingleton's comments with a spokesman saying that efficiency had greatly improved, feeding through to lower prices for consumers (????).

Dr. Fingelton's comments about Eircom were part of an address on competition to the Institute of European Affairs (IEA) in Dublin where he was responding to a speech from the EU Competition Commissioner, Mr Mario Monti.

"Eircom has not made the type of substantial progress on efficiency that is possible and should be required," Dr Fingelton said. Real competition had still to be introduced to the energy sector and the telecoms market, he said, pointing to a recent survey whcih has shown that Ireland ranked badly in terms of cost and availability of broadband.

However, Eircom has strongly disputed Dr Fingelton's analysis. "The efficiency is being driven in Eircom and it is leading to lower prices (????)", according to Mr David McRedmond, commercial director. Prices had fallen by 40 per cent in real terms since 1997, he said, and Eircom's staff numbers had fallen from 13,5000 to 8,5000 in the past four years. An OECD study had shown that business prices here were cheaper than in the UK, while household prices were now similar.

Eircom was now making available a low-cost broadband product through its new DSL service, he said, which, the company was confident would increase uptake in this area.


I have to say this is really taking the piss, eircom not efficient tis like saying theres sand in the sahara

Have to say this has brightened my day LOL

Regards
Shin

bk

Originally posted by dahamsta
In all seriousness though, I'd be interested to hear the official line on this one: Do you think this is an ominous first volley, or just more rhetoric? I can't decide meself, although obviously I think they should have grabbed Eircom by the balls and squeezed /real/ hard quite some time ago.

adam

I believe it is a shot across Eircoms bow.

It is a very good result that the CA considers Eircom a problem, therefore we can probably expect investigations by the CA into Eircom.

Dangger

I'll be on air with Dr. Fingleton this afternoon on Newstalk 106 and around 12:30/12:40.

Trebor

Originally posted by Dangger
I'll be on air with Dr. Fingleton this afternoon on Newstalk 106 and around 12:30/12:40.

will be listening, lets hope he gives you more time than the last show

flav0rflav

Is this also a comment on the performance of the regulator?

Broadband is necessary for the economic development of the nation, and should not be placed at a lower priority than the profiteering of a private company in a monopoly position.

I would suggest that the eircom 'facts' about it's efficiency and pricing are based on all it's services, not just broadband. Sure, their local call per minute off peak rate is probably very good. But how much are they charging a competitor to wholesale a 1 Meg service compared to the rest of europe, line and handover.

Trebor

Originally posted by Dangger
I'll be on air with Dr. Fingleton this afternoon on Newstalk 106 and around 12:30/12:40.

damn i missed it could someone post a link to where i can download it from?

gandalf

One thing I noticed on the Eircom response is the staff numbers have dropped from 13,500 to 8,500 in the last 4 years. Surely most of these were when Eircell split from them to join Vodafone.

TBH it sounds like more soundbites in any other country the competition authority would have taken action against the incumbent years ago. Unfortunately we live in Ireland where its "all talk and no trousers".

Gandalf.

swoofer

Gandalf, I totally agree with your sentiments. I am moving back from the UK and it is like going back in time but I don't want o keep on harping about yjings so it is good to see others express my sentiments. Makes me feel a bit better.

A download limit on BB!!


GB--

shinzon

Did anyine catch the intervew today, if they did can someone put a link up to where I could dl it

Thx


Regards

Shin

Stonemason

Dr. Fingelton's comments about Eircom were part of an address on competition to the Institute of European Affairs (IEA) in Dublin where he was RESPONDING!!! to a speech from the EU Competition Commissioner, Mr Mario Monti.

What was in Mr Monti,s speech ?.Personaly no offence to IOFFL as they have created allot more awareness,but having the EU leaning on the goverment to get moving is the only way to get anything really done here chuck in a few fines if they still drag there feet.

Anyone got a link to the interview sounds interesting.


TA

Paddy20

Yes, It would be nice to have a listen to the Newstalk 106 interview with Dangger & Dr. Fingleton.

As I live in Donegal, I believe that programme is not available up here. So if anyone recorded it pehaps they would not mind sharing it with us deprived country folk?..

Paddy20.

dahamsta

Originally posted by Stonemason
What was in Mr Monti,s speech

http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/03/264|0|RAPID&lg=EN&display=