Eircom fails to win single broadband contract

JackieChan

No surprise here:

Eircom fails to win single broadband contract
Jamie Smyth, Technology Reporter @www.ireland.com (c) 2005




Eircom has failed to win a single State broadband contract to supply internet connectivity to 4,200 schools in the Republic in a recent tender for suppliers. The contracts are worth up to €20 million over three years.

The firm has been outbid by several rival companies, which will use a selection of fixed, wireless and satellite technologies to deliver broadband to both primary and secondary schools.

Eircom, which bid for a wide range of the connectivity deals, has only secured a contract to provide and manage "routers" - special computer systems that link together to offer broadband internet access - at the schools.

This deal is estimated to be worth just €2 million, a fraction of the €20 million value of the total schools broadband project over three years. It is also a much lower-margin business than the broadband connectivity contracts offered in the State deal.

Eircom's failure to secure any of the connectivity deals in the schools project is a wake-up call for the company, which is likely to face a similar State tender worth about €130 million in May.

The Department of Finance is expected to put out to tender the Government's VPN contract, a controversial deal which contracts Eircom as the State's sole supplier of fixed line telecoms services. This deal is worth up to €130 million per year to Eircom, and its loss would be a major blow to the incumbent operator.

The Irish Times has learned that the Government sent letters to the successful firms in the schools project yesterday confirming which contracts they had secured from the tender process.

Successful bidders include the wireless firm Irish Broadband, and Esat BT, although the State's second-biggest fixed-line firm did not do as well as expected.

Eircom said last night that it had not been informed about the broadband connectivity deals, but confirmed that it had been awarded the router contract.

Firms that have been awarded connectivity contracts will be encouraged to build broadband infrastructure in an effort to promote competition in the sector.

Eircom's failure to land one of the lucrative connectivity deals is particularly ironic, given that the firm is providing up to €3 million funding for the project.

This donation was part of a total industry commitment to the schools broadband project from the likes of Esat BT, Vodafone and O2, worth €18 million. The Government made up the €2 million shortfall.

The broadband contracts decided by the Government will enable schools to offer videoconferencing, email and a range of other Web services to pupils.

HEAnet, the State's existing educa tion and research network, will manage a central broadband network on behalf of the Government.

Gilgamesh

serves them right. mayeb they will see this as a kick in the teeth, that they just do not have a monopoly on the phone after all, as alternate tech has moved in, and taken what they though was their's and their's only.

DarkTranquiLity

****, people finally starting to cop on to these dickheads. Lets hope they lose everything and go completely BUST

Mr_Man

Folks,

while I dislike Eircomm as much as the next person who can't get BB, they didn't do too badly out of this scheme as they scooped 10% of the total budget in an area which involves less overhead than actually installing BB in each school.

M.

Adey2002

Mr_Man wrote:

Folks,

while I dislike Eircomm as much as the next person who can't get BB, they didn't do too badly out of this scheme as they scooped 10% of the total budget in an area which involves less overhead than actually installing BB in each school.

M.

Yes, they are getting 10% which is 2 million, but considering they are giving 3 million to the project they are only one million down.

gline

Ah its good to see the government choosing the competition, incourages growth and kicks eircom in the ass, LOL

I am MAN

Lol Lol Lol

Rofl Rofl

MrPinK

Adey2002 wrote:

Yes, they are getting 10% which is 2 million, but considering they are giving 3 million to the project they are only one million down.

And as stated in the article, flogging and maintaining the routers has a much lower profit margin than providing the broadband.

Definitely a karmic kick in the balls

dub45

While it may be good to let off steam at Eircom nobody seems concerned as to whether they made the right choices for such am important area. Did they?

Moriarty

'Wait and see' is basically all we can do. It could work well, or not at all, or anywhere in between.

CyberGhost

DarkTranquiLity wrote:

****, people finally starting to cop on to these dickheads. Lets hope they lose everything and go completely BUST

Amen.

jimmycrackcorm

MrPinK wrote:

And as stated in the article, flogging and maintaining the routers has a much lower profit margin than providing the broadband.

Definitely a karmic kick in the balls

Must be very expensive routers. I'd say the management charges are very high and lucrative. Once they are configured - exactly how much effort is required into ongoing maintenance?

Infini

Well thats what they get for providing a lousy service, sneaky charges and giving as little value for money on their broadband service. Maybe they'll wake up and offer some REAL value now.

CyberGhost

Infini wrote:

Well thats what they get for providing a lousy service, sneaky charges and giving as little value for money on their broadband service. Maybe they'll wake up and offer some REAL value now.

erm when pigs fly buddy, they defenatelly are not going to offer anything good for a looong time, until they will HAVE TO!

it's us the board members that found out eircom lost something, but an average person doesn't know anything else but eircom

Infini

CyberGhost wrote:

erm when pigs fly buddy, they defenatelly are not going to offer anything good for a looong time, until they will HAVE TO!

it's us the board members that found out eircom lost something, but an average person doesn't know anything else but eircom

True. But if they lose the government contract (which they deserve to lose) then they'll have to. They've screwed the public off for a long time and I wont be suprised when this comes back to bite them in their fatcat asses!

damien

CyberGhost wrote:

it's us the board members that found out eircom lost something, but an average person doesn't know anything else but eircom

Then why not spread the word ?

Infini

damien.m wrote:

Then why not spread the word ?

Know any other boards we can rat them out to?

Paddy20

The RAT is dead, long live the MOUSE !

P.

Infini

Paddy20 wrote:

The RAT is dead, long live the MOUSE !

P.

Somebody's been drinking again!

CyberGhost

Paddy20 wrote:

The RAT is dead, long live the MOUSE !

P.

the rat is a highlander it can't be killed