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[Irish Indo] Charges for internet use the highest in Europe

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  • 07-12-2004 11:27am
    #1
    damien
    Registered Users Posts: 4,290 ✭✭✭


    http://www.unison.ie/irish_independent/stories.php3?%20ca=9&si=1300058&issue_id=11784
    IRISH consumers are paying some of the highest rates in Europe to surf the web, the European Commission said yesterday.

    Recent moves to cut prices met with scepticism.

    In an annual report, the Commission raised concerns over a lack of competition in Ireland's internet provider market.

    It also questioned the functioning of the telecommunications regulator, ComReg.

    ComReg has proposed reducing the rate Eircom can charge companies for using its network to sell internet access to customers, cutting the monthly rate from €16.81 to €14.65.

    But the Commission said this rate would still make Irish prices the second most expensive in Europe.

    "Notwithstanding the favourable margins available between retail and wholesale prices, many alternative operators are opposed to the proposed monthly rental charge which they consider too high," read the EU executive's annual report.

    The Commission said ComReg had justified the price on the basis of Ireland's "unusual demographics" where over 40pc of people live in rural areas.

    Ireland lags behind the rest of Europe in providing broadband or high-speed internet access with only 4pc of people using broadband compared to an EU average of 12pc.

    But the Government plan to introduce the technology could break EU rules, the Commission said.

    The Government will earn money from the broadband networks but also regulate the industry, raising a potential conflict of interest.

    "It remains to be seen how the separation of regulatory and ownership functions, as required under EC law, will be ensured," said the Commission.

    The Commission also raised concerns over the functioning of ComReg.

    It said the appointment of a chairperson to the body lacked transparency and criticised the ad hoc nature of the appeals process where a panel is only set up when a company challenges a ComReg decision.

    The Commission also said the government was too hasty in issuing instructions to ComReg to liberalise a specific sector without allowing the regulator time to carry out a full market analysis.

    Aine Gallagher

    Trying to find this EU report now. No luck so far.


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