Broadband competition

MagicSean

Eircoms refusal to upgrade certain exchanges effectively gives them control over the size of the line connection broadband market in Ireland as well as complete control over access to customers. I'm curious as to how this kind of control over the market would stand up under competition law. Any theories?

castie

Not sure how it would fall under any of the regulations to be honest.
They are not benefiting from it, its a level playing field for all.


Even if it was considered to be.
I would think a simple "its uneconomical for us to make an upgrade to this exchange" would suffice.

You cant just force them to make loss making ventures.

Tom Young

The Regulatory Framework is a little more complex than that unfortunately.

MagicSean

I'd argue that it is beneficial to have total control of the size of a market and over access to individual area markets. It also contributes to the establishment of monopolies in those areas by companies who offer expensive wireless service to customers with no alternative.

Of course then you're kind of getting into the question of wether broadband is a necessity or a luxury.

CIARAN_BOYLE

MagicSean wrote: »

Eircoms refusal to upgrade certain exchanges effectively gives them control over the size of the line connection broadband market in Ireland as well as complete control over access to customers. I'm curious as to how this kind of control over the market would stand up under competition law. Any theories?

There are other competitors off the phone line, NTL use the cable line and there are providers that work off the mobile phone network so there is competition there.

Tom Young

Geographic segmentation is argued for by Eircom to try shore up perceived losses created by UPC. Those losses are very limited.

It would be wholly unsuitable as a Regulatory remedy in our market, given its size and the lack of incentive to invest at certain points in the country, e.g., the boonies.

The LLU area is regulated and other operators have access to Eircom's network.

With Eircom in an unhealthy state financially, it is unlikely much will be done to upset the current status of things!

Tom

Tom Young

MagicSean wrote: »

I'd argue that it is beneficial to have total control of the size of a market and over access to individual area markets. It also contributes to the establishment of monopolies in those areas by companies who offer expensive wireless service to customers with no alternative.

Of course then you're kind of getting into the question of wether broadband is a necessity or a luxury.

The markets are segmented into relevant markets for service(s) in most instances. I assume that is not what you are referring to above?

MagicSean

CIARAN_BOYLE wrote: »

There are other competitors off the phone line, NTL use the cable line and there are providers that work off the mobile phone network so there is competition there.

Wireless broadband cannot be compared to fibre optic landlines.

Tom Young wrote: »

The markets are segmented into relevant markets for service(s) in most instances. I assume that is not what you are referring to above?

I was referring to geographical areas. Basically Eircom have the option to analyse a geographical area and activate a service there at their own will when they believe they will have a competitive edge. For example, Eircom could time their exchange upgrades to coincide with a particular marketing scheme to give them the best chance of taking new customers. Or they could wait until the current wireless provider gets in some kind of difficulty and then swoop in and target their customers.

The network company and the provider should be seperate so profitability shouldn't really come into it.

Tom Young

Sorry but that's a pipe dream! Pun intended.

Currently, doing that would kill competition in the NGA space.

Why give an incumbent what they want?

Tom

MagicSean

Tom Young wrote: »

Sorry but that's a pipe dream! Pun intended.

Currently, doing that would kill competition in the NGA space.

Why give an incumbent what they want?

Tom

i don't follow. What would be giving them what they want?

Tom Young

Eircom has been calling for Geographic Segmentation for some time now.

MagicSean

Tom Young wrote: »

Eircom has been calling for Geographic Segmentation for some time now.

But they effectively have it. By controlling the broadband lines they can choose when and where to introduce or allow the introduction of products. Every time there is an upgrade in technology they can choose which areas to introduce it to.

Tom Young

Yes, but that's not the point. They've currently gut SMP in the relevant market for supply of legacy services.