LLU, Ireland worst in the EU with the highest cost per month

spongebob

This article is in French but Dégroupage = Unbundling and the prices ARE in €

Ireland only has 280 Unbundled lines (the lowest) with some 1380 Partially Unbundled lines, so now ye know how many customers ESAT have for their Biz DSL product

Thanks for everything Comreg.

The source data comes from a report by Cocom..who are Cocom ?

M

oscarBravo

Originally posted by Muck
Thanks for everything Comreg.

And EsatBT, of course. At double the price of the equivalent Eircom product, it's obvious that EsatBT don't want to sell their undbundled product.

The burning question is, why not?

viking

Babelfish translation:

Total Unbundling: a slow alarm clock in Europe
In the whole of the European Union, one counts a little more than 2 million lines 100% dégroupées. Only Germany and Italy dissociate themselves for the moment but France should accelerate this summer. (03/06/2004)

The rise to power of the total unbundling, which makes it possible to an operator to control from beginning to end the chain of the network telecom via which it markets services Internet and telephony, is slow but palpable in Europe. At the end of 2003, the European Commission and the Communications Committee (Cocom) listed 2,1 million lines in total unbundling in the 15 European Convention country, of which the half is in Germany.

First report: on the whole of the Member States, it isGermany which is most advanced in the deployment of lines in total unbundling. At the end of 2003, one counted 1,3 of them million on the German territory. Behind, with more than 500.000 dégroupées lines, Italy appears. In third position, one finds Finland with nearly 80.000 completely dégroupées lines. In the prize list of the five most voluntary countries, one also finds Denmark and the Netherlands.
Sweden is not distinguished in this classification dedicated to the total unbundling because it supported the development of the partial unbundling. The situation is similar in France at the present time.

The rate of penetration of the unbundling gives an idea of the relative importance of the movement in the current state. In the best of the cases, Finland posts a rate of penetration of the dégroupées lines of 3,7%. France is located in eleventh position in the classification. At May first, the Authority of regulation of telecommunications (ART) counted 547 613 lines dégroupées on the French territory, from including only 8 487 accessible in total unbundling. Whereas France counts with total more than 34 million telephone lines. But the Hexagon should quickly make up for its lost time thanks to the launching of offers of total unbundling during June by Free and Last nine Telecom (to readthe article of the 04/05/04). Tiscali, Tele2 and certainly Cegetel will follow little afterwards.

Etrangement, in the statistics of Ofcom (authority of regulation of telecommunications in the United Kingdom), the number of agreements related to the total unbundling in Europe dropped in 2003: it would be 307 in 2003, against 455 in 2002. Would Finland explain this difference? This country signed 182 agreements of this type in 2002 but Ofcom could not not recovered the reactualized figures. Logically, one finds the countries the most implied in the processes of unbundling total like Germany, Sweden, the United Kingdom and Italy.

The analysis by the prism of the prices charged inter-operator for the total unbundling is also interesting. Finland is characterized by its policy from high prices: the tariffs for the price of connection are at least three times more expensive than the European average. Five countries placed the very high bar in term of tariffing (Finland, Luxembourg, Sweden, Royaume-Uni, Ireland). In the case of Ireland, that undoubtedly explains why the rate of lines in total deblocking is so weak (280 lines dedicated in all). It appears indeed difficult for an operator to make profitable his investments with such tariff conditions. In France, the offers general public which are profiled seem much less low. Free should for example propose the total unbundling without overcost with the monthly subscription of 29,99 euros as from next 7 June.

Urban Weigl

Originally posted by oscarBravo
And EsatBT, of course. At double the price of the equivalent Eircom product, it's obvious that EsatBT don't want to sell their undbundled product.

The burning question is, why not?

As far as I know, the answer is simple: Margins are already tight for their Biz DSL product, since Eircom's colocation and other fees stack up (in addition to the cost of unbundling itself).

If they were to advertise it more, launch at a lower price and offer innovative DSL products, all they would be doing is turning over money for Eircom, and possibly making a loss themselves. No business will invest in something they can't make any money on.

dahamsta

Originally posted by oscarBravo
And EsatBT, of course. At double the price of the equivalent Eircom product, it's obvious that EsatBT don't want to sell their undbundled product.

The burning question is, why not?

I'd imagine it's a combination of:

1. Wholesale costs. We know these are far too high, and with no competition in the marketplace (for LLU), there isn't enough pressure to bring them down.
2. Equipments costs. Since the scale of their rollout is much smaller than Eircom's, it'll take longer to build up a customer base and recoup the initial outlay.
3. Following on from b), Esat are probably afraid of pushing it too hard for fear of losing leased line revenue from SMEs.

adam

spongebob

Originally posted by dahamsta
I'd imagine it's a combination of:

1. Wholesale costs. We know these are far too high, and with no competition in the marketplace (for LLU), there isn't enough pressure to bring them down.
2. Equipments costs. Since the scale of their rollout is much smaller than Eircom's, it'll take longer to build up a customer base and recoup the initial outlay.
3. Following on from b), Esat are probably afraid of pushing it too hard for fear of losing leased line revenue from SMEs.

adam

1. Thats for sure. Last I heard on LLU from Comreg they wanted to know how much a telephone pole costs.
2. The government gave them £10 million (€12.5 Milion) to roll it into 40 exchanges , thats £250k per exchange , recoup what exactly one wonders. . They also had the DSL market to themselves in the major cities for a while.
3. or a salesforce and back office that could make p1ssing complicated in practice.

M

dahamsta

Originally posted by Muck
2. The government gave them £10 million (€12.5 Milion) to roll it into 40 exchanges , thats £250k per exchange , recoup what exactly one wonders. . They also had the DSL market to themselves in the major cities for a while.

Sadly, I can't argue with that. My apologies for not projecting.

3. or a salesforce and back office that could make p1ssing complicated in practice.

See above.

adam