ComReg to get power to fine up to €5m

govinda

http://www.businessworld.ie/livenews.htm?a=1006286;s=rollingnews.htm

The Government is drawing up new measures which will allow the telecoms regulator impose fines of up to E5m on firms found to have acted inappropriately.


[font=Verdana,Arial,Helvetica,sans-serif]The new powers, which see the fines levied directly by the regulator, are being considered as a response to recent overcharging scandals but could also be used to penalise firms that breach regulations.

At present, ComReg can only levy fines of E3,000 against errant operators on indictment in court. Given this low ceiling and the costs involved in pursuing prosecutions, no court action has been taken against any company.
[/font]
In an interview with The Irish Times, Communications Minister Dermot Ahern said he had asked his officials to try to model the penalty regime for ComReg on similar powers that have been granted recently to the IFSRA. The new legislation should go before the Dail next month when the section dealing with ComReg's ability to levy fines directly has been completed by Ahern's officials.

MarVeL

Ok so finally some realistic teeth (wonder if ComReg asked for this or if its just being given to them) but what are the odds on them biting anyone let alone eircom?

Ripwave

MarVeL wrote:

Ok so finally some realistic teeth (wonder if ComReg asked for this or if its just being given to them) but what are the odds on them biting anyone let alone eircom?

This means that they will have the power to shut down almost any other provider in the country except eircom (IOL/ESAT might be the only one who could survive a €5m fine).

And you can be damn sure that if they try to charge eircom €5m for an infraction that they charged someone else €100k for, then it'll end up in the Four Goldmines.

As Comreg always had the "final solution" option of cancelling a providers license, I'm not convinced that this will really make any difference.

(And bear in mind that Comreg approved eircoms line rental increase despite the fact that eircom were blatantly dragging their heels in a range of areas, so it's not as if Comreg have shown any willingness to apply financial pressure in their dealings with eircom up to now anyway).

dahamsta

govinda wrote:

[font=Verdana,Arial,Helvetica,sans-serif]At present, ComReg can only levy fines of E3,000 against errant operators on indictment in court. Given this low ceiling and the costs involved in pursuing prosecutions, no court action has been taken against any company.

First of all, as far as I'm aware ComReg doesn't have to go to court to levy the fine, except if the operator challenges it. Given ComReg's record on this front (nought for nought), they haven't set much of a precedent to prove that all operators actually will do so.

Secondly, I'm pretty damned sure that the Communications Act that we spent so much time [/font]on a couple years ago provides for fines up up to 10% of turnover? Or are there some conditions I've forgotten?

adam

damien

Didn't ComReg previously have the ability to fine the Telcos a % of their turnover ?

Does anyone know for fact if ComReg has ever fined a telco ? Even with no teeth have they smacked a telco with the €3500 fine ? It's not just the amount, its the symbolism of the fining that's important.

Ripwave

damien.m wrote:

Didn't ComReg previously have the ability to fine the Telcos a % of their turnover ?

Not to the best of my knowledge. That's what was being called for in this forum (and elsewhere, I imagine), because a "flat fee" approach suits eircom down to the ground.

eircomtribunal

Any one able to "inform" us on the text of the Dermot Ahern article in today's Irish Times?

P.

vinnyfitz

eircomtribunal wrote:

Any one able to "inform" us on the text of the Dermot Ahern article in today's Irish Times?

P.

1. on front page of business ection
Minister set to increase ComReg's powers to fine




Telecoms firms may face fines of up to €5 million under a tough new penalty regime being drawn up by the Governmen, writes Jamie Smyth, Technology Reporter.

The new powers, which see the fines levied directly by the regulator, are being considered as a response to recent overcharging scandals but could also be used to penalise firms that breach regulations.

Currently, the Commission for Communications Regulation (ComReg) can only levy fines of €3,000 against errant operators on indictment in court. Given the low level of the maximum fine and the costs involved in pursuing prosecutions, the regulator has not taken court action against any company.

In an interview yesterday with The Irish Times, the Minister for Communications, Mr Ahern, said he had asked his officials to try to model the penalty regime for ComReg on similar powers that have been granted recently to the Irish Financial Services Regulatory Authority (IFSRA).

He said there was a question about whether or not independent regulators had the power to impose fines directly but that the Central Bank and Financial Services Act 2004 had addressed this.

"We are looking at that legislation and the possibility of using that as a template," said Mr Ahern, who dismissed criticism about a delay in introducing proper penalties for ComReg.

Under new legislation rushed through the Dáil in the wake of the AIB overcharging scandal, IFSRA can fine banks up to a maximum of €5 million without pursuing a case through the courts.

Mr Ahern said he had signed off all parts of a new Telecoms Miscellaneous Bill, except the section relating to direct fines.

The new legislation should go before the Dáil next month when the section dealing with ComReg's ability to levy fines directly has been completed by Mr Ahern's officials.

The new Bill will reinstate ComReg's ability to seek court approval to levy fines worth 10 per cent of a telecoms firm's turnover if they breach regulations. This power, which has never been used by ComReg due to the lengthy process of proving a case in court, lapsed in July 2003 when a new European regulatory framework was introduced.

It is understood that the Government is keen to introduce the new penalty regime as quickly as possible following three separate overcharging incidents this year.

O2, Vodafone and Eircom all admitted to overcharging customers due to billing system errors this summer. When the new penalties are passed, telecoms firms could face fines for future instances of overcharging.



© The Irish Times

vinnyfitz

From page 8 of the busines section

Minister says broadband expansion key achievement in portfolio




It has been a busy two years for the Minister for Communications, Mr Dermot Ahern, who has overseen big changes in the telecoms sector since taking on the job, writes Jamie Smyth, Technology Reporter.

Now, with a Cabinet reshuffle due for next week, he says he is staying focused on his portfolio, despite persistent rumours linking him with different ministries, including foreign affairs.

"My preference is to stay in Cabinet but I enjoy this ministry and it is a challenge," says Mr Ahern, who quickly shifts the conversation to accomplishments.

"One of the key areas that I identified when coming into the job was broadband and I am reasonably happy with the changes that have happened," he says. "There were just 3,000 broadband users when I came into office and there are now more than 80,000. Prices were more than €100 and now they are at the EU average."

Faced with an incumbent operator in Eircom that had resisted calls for lower prices and more investment, Mr Ahern set about securing public investment to drive the roll-out of broadband.

"I was acutely aware of the need for Government to be more interventionist... In my view we had to intervene - if you leave it to the market then you have a situation where the peripheral areas and areas not commercially viable for broadband will not have it."

Despite a vigorous campaign conducted by the Communications Workers Union (CWU) in his own backyard and lobbying by Eircom to have funding for regional fibre networks cut, Mr Ahern persuaded Minister for Finance, Mr McCreevy, to fund the projects.

"During the last six months, Finance has agreed as part of the estimates process to fund broadband in 2005 to 2007 with an average of €35 million per year... networks will now be rolled out to another 90 regional towns."

Mr Ahern acknowledges that difficulties remain in opening the last mile of Eircom's network to competitors but he says there is no going back as public networks and new technologies emerge.

Despite consumer frustrations with a 24 per cent failure rate on Eircom's network, he remains upbeat about the future for broadband take-up in Ireland, which he says is catching up with the EU.

"I would like to see Eircom and the other telecoms firms invest more but they will have to make their own commercial decisions," he says. "What we are experiencing here is no different than other European countries."

Mr Ahern also heralds the establishment of the group broadband scheme - which offers rural communities access to funding worth €25 million - as a success, despite a very low take-up so far.

"We have more of a job to promote the scheme... I am not going to go back to the days where we gave big companies a dollop of money and let them go off and build networks. I will target taxpayers' money to ensure there is not more of a digital divide."

One success in his tenure was the use of policy directions to force the regulator to take aggressive action to ensure Eircom set up flat-rate dial-up internet and wholesale line rental.

"I am happy that I was vindicated in my push to open up flat-rate dial-up and 90,000 people have signed up for it so far. But the next challenge is to move these people to broadband, something which surprisingly isn't happening at the moment," he says.

Critics cite Mr Ahern's interventionist approach in regulation and the creation of an Appeals Panel that can overrule decisions made by the Commission for Communications Regulation (ComReg) as evidence that he has undermined the regulator.

He dismisses this criticism signalling that Government must set policy, but he acknowledges that ComReg needs new powers.

"On every occasion when ComReg comes into me I have asked them if they require legislation to ensure that action is taken... Legislation takes time to bring forward, that is the reality. I have now signed off on new legislation that will increase the fines they can levy on firms," he says.

The new powers will be contained in the Telecoms Miscellaneous Bill, which will go before the Oireachtas this autumn. The Bill will reinstate maximum fines of 10 per cent of turnover on indictment of a telecoms firm that breaches regulation. But it may also give ComReg the power to fine telecoms firms without having to go to the courts.

The power to levy tough fines without recourse to the courts has long been a weapon sought by ComReg, which currently can levy only a puny fine of €3,000 on a successful court indictment.

One problem area in his portfolio that Mr Ahern has so far failed to deliver results is the creation of a viable digital TV platform in the Republic. Despite a Government commitment to get a platform up and running since 1998, one attempt has failed and no firm new policy has emerged.

"We could be lucky in that some other countries set these up in the boom and lost millions when the firms collapsed," says Mr Ahern.

"We are now actively looking at rolling DTT [digital terrestrial television\] out nationally but on a gradual basis beginning in the greater Dublin area and over a 30-month period facilitate the development of the market," he says.

Under the current plan, up to 12 channels would be made available to consumers on a trial basis in Dublin at a cost of €3 million

But after six years of waiting for DTT, consumers would be ill-advised to bet the house on it.



© The Irish Times

dahamsta

From the horse's ass (PDF):

(a) A person guilty of an offence under subsection (2)(c) or (i), (3)(c) or (f), (4)(d) or (7)(d) is liable—

(i) on summary conviction, to a fine not exceeding €3,000, or

(ii) on conviction on indictment, to a fine not exceeding whichever of the following amounts is the greater, namely, €4,000,000 or 10 per cent of the turnover of the person in the financial year ending in the 12 months prior to the conviction.

So yeah, the percentage is on conviction.

However they don't have to go to court to levy the smaller fine, anyone want to contradict the suggestion that ComReg has never done this?

If not, why not? Headlines not big enough for Doherty and Doyle?

adam

damien

Someone could always ring and ask ComReg. Unfortunately some folks in ComReg are not returning my calls anymore. Or replying to my emails. It really saddens me. *cries*

But I''ve kept record of every communication including dates in case some of the frequent visitors from ComReg would like to take exception with my above statement.

Saying that I have been in continuous contact with others in ComReg and I have to say they are such angels to deal with. Amazing the way some people differ within an organisation of 120 people.

MarVeL

First of all, as far as I'm aware ComReg doesn't have to go to court to levy the fine, except if the operator challenges it.

Can't imagine eircom not taking a fine to court. Think of the precedent! It would mean a regulater who actually regulated as opposed to rubber stamped or, in extreme cases, tut tutted at them. On a point of "principle" they would have to.

Sleipnir

Sure what does it matter if it's 5 million or 500 million?
Comreg would never want to upset Eircon anyway. No matter what Eircon do,
Comreg won't touch them.