So should eircom be worried?

Headshot

So with sky entering the broadband market here in Ireland hopefully soon, im wondering will many Eircom users ditch them and sign up to Sky.

Iv eircom broadband unfortunately and I reckon the minute sky come in, ill be off like a shot to them. Iv already have sky tv service, so makes sense going to them.

About Eircom being worried, should they?

I also like to know will Eircom lose alot of money by renting out lines to sky

Logical_Bear

only because it will be cheaper..it will still be delivered over the phone line so speeds etc wont improve.

kirving

eircom will be forced to rent lines to Sky at a ridiculously low rate, while also having to charge their own customers a minimum amount.

eircom will have to move into TV in the near future and lay a heap of fiber if they want to survive.

Headshot

Kevin Irving wrote: »

eircom will be forced to rent lines to Sky at a ridiculously low rate, while also having to charge their own customers a minimum amount.

eircom will have to move into TV in the near future and lay a heap of fiber if they want to survive.

Why do you think that Kevin?

Logical_Bear

Headshot wrote: »

Why do you think that Kevin?

comreg.
just selling BB alone any more isnt an option..the providers have to add other stuff now just to compete.

upc have their BB(very fast),phone and tv all in one package that makes it very attractive.

Sky will also be able to offer discounts with them being able to provide tv as well.

for eircom to overtake both they will have to give fibre BB and a tv package good enough to rival upc.

dont forget also that eircom arent the national,state owned provider as they use to be(i.e they aint a charity,they're not gonna upgrade exchanges out in the middle of nowhere for the sake of it.they wont spend money doing it unless they can get profit back)

geneyuss

ive just one word,,,,Airtricity

kirving

I read somewhere before, that the regulator forced eircom to allow other providers use the lines for a very low fee, in order to increase competition.

Zhane

I can definitely see Sky subscribers jumping ship if they can save money with a bundle deal. I know I certainly will be.

starviewadams

Won't Sky have to pay Eircom to use their lines anyways?

yuloni

This post has been deleted.

PogMoThoin

Sky are reselling Eircom, therefore Eircom make money on every connection Sky sell regardless of whether they sell it at a loss or not. The price of Eircom bitstream includes line rental, the price of line rental is set by the regulator, Comreg. There is no low reduced rate for Sky. There are many players who already resell Eircom bitstream, another won't many any difference. Vodafone already sell it at a loss and use it to promote their Phone services.

bk

Sky will be reselling Eircoms product (at least BT LLU, which invloves a line rental charge to Eircom) and maybe also Eircom Bitstream.

So while Eircom will lose some money if people switch from Eircom to Sky, Eircom will still continue to get the majority of the money.

No, UPC is the much bigger threat to Eircom. When someone switches to UPC, Eircom loses all that revenue to UPC including line rental.

UPC has had a savage effect on Eircoms business.

Sky will be interesting, it will probably reduce the price of DSL, but not half as important as UPC.

miralize

Eircom will be doing the bins within 6 months!!

yuloni

This post has been deleted.

yuloni

This post has been deleted.

Logical_Bear

geneyuss wrote: »

ive just one word,,,,Airtricity

yes it is ,well done.


so is whatyouOnAbout?

naitsirhc

Eircom are definitely losing a lot of customers once Sky come in with broadband. They will really need to improve the product and do it cheap-ish as well if they still want to be around this time next year.

Unless they figure out a way to just improve the cables and make money purely on renting them to Sky and Vodafone etc

Sponge Bob

Sky is only a nuisance, UPC launched in Bray a year ago and took aound 1/3 of eircoms residential customers off them in only 6 months.

geneyuss

Logical_Bear wrote: »

yes it is ,well done.


so is whatyouOnAbout?

that makes sense

yuloni

This post has been deleted.

Cabaal

Kevin Irving wrote: »

eircom will be forced to rent lines to Sky at a ridiculously low rate, while also having to charge their own customers a minimum amount.

How's that going to happen now?

Up till now comreg have been toothless and have caved in in court cases against eircom, given the go ahead to eircom to raise line rental prices and also caused the failure of LLU rollout in Ireland by not standing up to Eircom.

There's no evidence to suggest in anyway that eircom will have to drop any line rental prices so your suggestion is mere speculation.

As mentioned above, its upc thats the real problem for Eircom

kirving

Ok, it was just something I read a while back. I can't remeber where, sorry.

How much do Vodafone pay eircom for each line currently? Is it up around the €25 mark that eircom charge their own customers?

MagicMarker

The wholesale cost for line rental is not much less than what the retail price is.

bealtine

Kevin Irving wrote: »

How much do Vodafone pay eircom for each line currently? Is it up around the €25 mark that eircom charge their own customers?

Here's a copy of a post I made elsewhere:

If Sky can do that then fair ball to them or even make a business case for doing it...maybe the business case is simply to head off UPC

The only part of the equation where they can make a few bob is on the LLU part. I can't see where they can make significant savings/reductions on the bitstream part of the equation.

LLU line rental currently costs E12.41 so there's some wriggle room there but the bitstream costs are fixed and exorbitant. Here is a table of current costs for bitstream : http://www.eircomwholesale.ie/News/B...am_Price_Cuts/
As you can see the most basic DSL provision costs E21.50.

Now excluding retail minus costings...

so 21.50 + 26 = 47 includes a bit of wholesaler profit
That's about the cheapest that bitstream DSL can be delivered at...and most providers like Voda are only charging E40 (with pathetic caps)
The only real wriggle room is on the cost of the TV package.

Sky must have spotted something we can't see or it's a loss leader

Wireless net

the killer is the line rental.

well then how are vodafone managing to sell the following
and also why the strange requirement to have a line capable of 8mb + speed to get this plan

and you can purchase a 150GB add on for €5.99

so for €35.98 you would get 165GB usage allowance , no calls included, and an 18 month contract. this has to be the cheapest DSL offer out there currently, for broadband only?


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Wireless net

Sponge Bob wrote: »

UPC launched in Bray a year ago and took aound 1/3 of eircoms residential customers off them in only 6 months.

i am delighted to hear that,

bealtine

Wireless net wrote: »

the killer is the line rental.



Broadband Max Value

High speed broadband from only
€29.99 per month*

Can't find any reference to that bundle...
The cheapest one I can find costs E40

http://www.vodafone.ie/df/homebroadband/productdetails.jsp?productid=381054&producttypetab=HOMEPHONEBROANDBAND&perlicoid=115007

AlmightyCushion

bealtine wrote: »

Can't find any reference to that bundle...
The cheapest one I can find costs E40

http://www.vodafone.ie/df/homebroadband/productdetails.jsp?productid=381054&producttypetab=HOMEPHONEBROANDBAND&perlicoid=115007

http://www.vodafone.ie/offers/broadband-max/

bealtine

The costs outlined above are the retail costs, so therefore Voda must have cut down their charges to wholesale level, this assumes that the wholesale markup is 33%.
The data caps are pathetic so they must have shaved on the bitstream data backhaul too.

Line rental cannot be varied as Comreg set those

Wireless net

bealtine wrote: »

The costs outlined above are the retail costs, so therefore Voda must have cut down their charges to wholesale level, this assumes that the wholesale markup is 33%.
The data caps are pathetic so they must have shaved on the bitstream data backhaul too.

Line rental cannot be varied as Comreg set those

this broadband plan is an 18 month contract.

you can get a 150GB add on for €5.99.

when i called the 1800 number they said that to get this plan, you must already have a speed of 8mb or higher.

dont know why that is, or why that would be required.

i think we will see more special offers coming out, closer to the launch of SKY Broadband

lowelife

Considering Eircom can't even give me a service I don't see how SKY can do it either.
I live in a location where I feel none of the big boys in fixed broadband business, feel its worth their while to put any sort of cable/fibre in.

Peves me off no end that I have to rely on Mobile Broadband but I chose where I live so be it.