Broadband 'cannibalising' Eircom revenue

bealtine

I had a great idea one day. It involves renationalising eircom and a panel of 12 experts running the entire network similar to the ESB and the national grid.
//
connections I have the FF Ard Comhairle will be reviewing it (I hope). It has already been supported by an esteemed party member.
//

I've a far far better idea. Lets vote out the idiots that left us in this sorry mess in the first place.
Don't forget it was the "esteemed party" in question that sold the infrastructure off without even thinking about it and sold it to one of their great supporters too, Mr Silly Title O Reilly.

Let's see if the "FF Ard Comhairle" can make a decision that will benefit our country instead of just pandering to the brown bag buddies.

Let the "FF Ard Comhairle" consider this : it's their mess in the first place and it's their votes going down the toilet too.
I've never seen so many pissed off people around:
ripped off ex eircon shareholders and other hapless consumers who still have to use ancient eighties dialup technology so some "FF Ard Comhairle" gombeen/supporter can get even richer by ripping us all off.
It makes the Third world look like paradise.

They won't invest in their crumbling network, they can't provide basic (and I mean basic) 512/128 to 90% of their consumers because the cable is so rotten, even new lines won't support 512/128. And TitleHere O Reilly and buddies take millions out of eircom...

And we have BT providing 1Mb over ordinary lines to 98% of their consumers...up north they are aiming for 100% broadband coverage.

We need yet another tribunal and to get rid of these idiots that did this to us.

Moriarty

Let's not have this veer off into a political debate.

Ripwave

bealtine wrote:

And TitleHere O Reilly and buddies take millions out of eircom...

That's HUNDREDS of millions!

lucernarian

Hold on, there's a misinterpretation taking place. By "esteemed party member" I mean a person who is respected within the party. That's all. Certainly I am apalled at the shoddy way we are being treated and I can tell you not all FF members are happy about this either.

Btw I am not a member of FF, I just happen to have a couple of friends who are.

spongebob

Lets not have a Party Political debate . The whole issue of Universal Service is a political issue anyway . It boils down to

1. Those who want to throw Telecoms to the Market and let the market decide everything.

2. Those who consider Telecoms to be a Universal Utility, like water or lekky, and are prepared to regulate and act accordingly .

All political Parties contain an admixture of persons who are viscerally inclined towards either viewpoint 1 or 2 above. This Board is the same otherwise we'd all love and hug each other all the time .

M

bealtine

Muck wrote:

Lets not have a Party Political debate . The whole issue of Universal Service is a political issue anyway . It boils down to

1. Those who want to throw Telecoms to the Market and let the market decide everything.

2. Those who consider Telecoms to be a Universal Utility, like water or lekky, and are prepared to regulate and act accordingly .

M

For those who might like a different commentary on the wonders of this, imho failed, "free market economy" try reading http://www.gregpalast.com
Greg is no mere "looney leftie". He writes for The Observer and does lots of stuff for the Beeb.

eircomtribunal

First part of a Business article in the Sunday Times on the merits of having, buying or selling Eircom shares. link to the full article, with a second analyst recommending to "hold", but similar view on the Eircom situation: http://www.timesonline.co.uk/newspaper/0,,176-1226299_1,00.html

"August 22, 2004

Judgment Day: Should you buy shares in Eircom?
Wires still crossed for telecoms giant


IF investors were to give an award for the country’s most controversial company, Eircom would probably win it. The former state-owned telecoms giant had a short but eventful life as a public company when it was touted by the previous government as an unmissable investment opportunity.

That episode ended in financial disaster for most of the company’s small investors and also seems to have set back hopes of creating a shareholder culture in Ireland.

The company’s privatisation and subsequent return to the market last March was a low-key affair directed at institutional investors, but with an attractive dividend yield of over 7% also found favour with well-heeled private investors.

However, with the company facing pressure on several fronts a number of analysts believe the investment case is very weak.

The two experts below have been selected for their skills in several investment areas. They, or the funds they manage, may hold shares in the companies or sectors discussed.

Pramit Ghose, head of investment strategy, Bloxham Stockbrokers

IN this column in March we highlighted our cautious outlook on Eircom. Since then the stock has underperformed the Iseq index by about 13% and has failed to trade above its €1.55 flotation price.

Although Eircom retains a dominant domestic position in the fixed-line rental market, it is our view that growth prospects over the medium term are limited, so we reiterate our negative outlook on the stock.

Eircom reported broadly in-line full-year results in June, benefiting from tight cost control and improved gross margins. Earnings growth over the medium term is expected to be driven by a combination of cost rationalisation and improved operating efficiencies, with growth in access and broadband revenue compensating for reduced voice-traffic revenue.

However, the roll-out of broadband and upgrade of the network will require significant capital expenditure, expected to average between €180m and €220m annually over the next three years. The group is also expected to spend €140m over the next four years reducing its head count. Combined with high indebtedness (Eircom had net debt of €1.96 billion at the end of March), we are concerned that this may lead to stress on the high dividend payout, commonly cited as the primary attraction of the stock.
Although the group has indicated that it will re-enter the mobile business when a viable option emerges, the absence of a mobile presence since the sale of Eircell in 2001 further underlines the lack of significant growth potential.

With a shrinking fixed-line business, increasing competition from mobile substitution and a lack of attractive growth opportunities, we are yet to be convinced of Eircom’s long-term prospects. Our Contrarian Fund has positions in France Telecom and Vodafone, two stocks that we believe currently offer good upside potential.


Judgment: sell"

P.

DonegalMan

eircomtribunal wrote:

First part of a Business article in the Sunday Times on the merits of having, buying or selling Eircom shares.[/B]"

And the guy recommending 'hold' says inter alia:

"Another proposed growth initiative is re-entry into the mobile market; however, Eircom needs to be innovative in its strategy. " [size=-1](My emphasis)[/size]

'Innovative' and 'Eircom' in the same phrase has to be the joke of the century

lucernarian

originally posted by eircomtribunal
However, the roll-out of broadband and upgrade of the network will require significant capital expenditure, expected to average between €180m and €220m annually over the next three years. The group is also expected to spend €140m over the next four years reducing its head count. Combined with high indebtedness (Eircom had net debt of €1.96 billion at the end of March), we are concerned that this may lead to stress on the high dividend payout, commonly cited as the primary attraction of the stock.

It certainly needs at least this amount of expenditure but is it going to happen? How much could that money help the infrastructure?

On another point I thought of publicised Ireland's low broadband penetration rate. I know that Comreg does not release these figures but would anyone have a rough idea of how many lines are broadband-capable? I would estimate 200,000 contrary to eircom's 1,000,000. I don't know the latest figures for the actual number of home users of broadband but when they are used as a percentage of 200,000 I'm sure this would be much larger than around 4%-6% of 1000000

dahamsta

DonegalMan wrote:

'Innovative' and 'Eircom' in the same phrase has to be the joke of the century

Ah come on now Martin, Eircom is enormously innovative at both lying and stealing!

adam

seamus

The views of dahamsta in no way reflect the official views of boards.ie or its moderators. In fact he wants to take responsibility for his own utterances as he's absolutely dying to get eircom into court under any circumstances.

jwt

dahamsta wrote:

Ah come on now Martin, Eircom is enormously innovative at both ..........

adam

Oh God
I can see the solicitors rubbing their hands with glee.

I hope you have some serious evidence to back up that statement.

John

dahamsta

seamus wrote:

The views of dahamsta in no way reflect the official views of boards.ie or its moderators.

Or IrelandOffline.

jwt wrote:

I hope you have some serious evidence to back up that statement.

You can't libel a company, only a person. Unless of course someone in Eircom wants to stand up and say to the court that it was in fact aimed at them. It wasn't of course, since Eircom is also innovative at deflecting blame and hiding the ill-gotten gains; but I'd enjoy seeing the spectacle, and I'm sure the IrelandOffline members that'd turn up to see it would too. We mightn't get enough(!) at the GM's, but I'd give you good odds on a few hundred with those guys "giving evidence"*.

Besides, I've written far worse here. I believe that I actually called a particular Eircom employee a liar in 36pt bold at one point. Course they couldn't sue me, because there's plenty of evidence against that slimy little weasel...

adam


* Lying. Stay with me.

bealtine

jwt wrote:

I hope you have some serious evidence to back up that statement.
John

The truth always hurts....

jwt

dahamsta wrote:

Or IrelandOffline.

You can't libel a company, only a person.


adam

True but only in a criminal context, AFAIK civil proceedings can still be taken

We said that the damage caused by a libel on a company could be rectified in civil proceedings and that, in these circumstances, a libel upon a company should not be a crime. There was no dissent from this proposal.

Law reform society

However it your statement could be classed as a qulaified privilege

Qualified Privilege

· A good defence in the absence of malice

· Where a person has

a duty (legal, social or moral)

or an interest

to make it to the person to whom it is made

and the recipient has a duty to receive it.

· Fair and accurate reports in newspapers, periodicals and broadcasts

o Without obligation to publish explanations or contradictions:

Ø Of meetings and proceedings of

Foreign legislatures

International conferences to which the government send a representative

Foreign courts

Or extracts from registers open to public inspection

o With obligation to publish reasonable explanation:

Findings of associations for science or learning, professional interests or sport

Public meetings, bona fide and lawfully held, for discussion of matter of public concern

Meetings of local authorities, Commissions of Enquiry and statutory boards

General meeting of a public company

Government Notice or Garda Notice.

Any enough of this OT just me having a devious mind

John

Blaster99

So let's say NTL get their collective thumbs out and roll out broadband across the major cities and everyone starts using VoIP. Them will not be pretty days for Eircom. Never mind whatever money they're supposedly losing on broadband now, they have no choice but to invest heavily in that to fend off the competition. I wouldn't be surprised if Eircom are already planning for this but are dragging their heals for as long as possible to milk the market for what it's worth while they still can.