RELEASE: IrelandOffline Asks Regulators Why Line Prices Need To Be Highest In Europe

dahamsta · 31-08-2004 5:50pm #1

DUBLIN, AUGUST 31 2004 -- Communications pressure group IrelandOffline is disappointed by the decision of regulator ComReg to set the local loop unbundling price at the highest in Europe. The price of â‚¬14.65 per month will end up selling out the future for competition in this country once again. While other countries have reduced LLU pricing by as much as 70% (BT in UK) and wholesale prices keep falling every few months, ComReg has decided to lock in this rate until 2007, but are allowing eircom to increase the price by no more that the rate of consumer inflation by reference to the consumer price index (â€˜CPIâ€™) in each year. IrelandOffline feels ComReg has lost sight of its aims to drive competition* in Ireland and bring about choice for consumers.

IrelandOffline urges Dermot Ahern, the Minister of Communications, to intervene on this matter and issue a policy directive to the communications companies and ComReg to reduce the pricing. The Minister's previous directives brought Ireland into line with the rest of Europe and the flat rate directive enabled Ireland to finally avail of affordable dialup internet access. With another groundbreaking directive the Minister could bring about the next phase of competition in the sector. The Minister's response could be a significant step in defining Irelands broadband advancement on a world stage.

IrelandOffline Chairman Adam Beecher stated: "The DCMNR and the Minister have made some great inroads into tackling the poor net access situation and lack of broadband in this country with iniatives such as the Flat Rate directive, the MAN schemes and the Group Broadband Scheme. We'd like to see them keep progressing and direct ComReg to challenge Eircom, Esat and the members of ALTO to work together to produce affordable LLU in a reasonable timeframe for the benefit of consumers, business and the Irish economy."

Beecher further added that Local Loop Unbundling is one of many areas that its 2,000 strong members want tackled, according to feedback from their current Internet Survey. The survey is available at http://IrelandOffline.org/survey , with results to be announced on the 11th of September at Buswells Hotel in Dublin.

* From the ComReg website: "ComReg enables competition in the communications sector by facilitating market entry through a general authorisation to provide networks and service and by regulating access to networks so as to develop effective choice for consumers both business and residential."

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