[SBP] ComReg to have tougher powers to fine telecoms

damien

http://www.sbpost.ie/post/pages/p/story.aspx-qqqid=6318-qqqx=1.asp

Telecom firms that break the law will face tougher fines under legislation to be introduced next year. The maximum fine for breaches of regulations is currently €3,000 on summary conviction and the telecommunications regulator, ComReg, must first go to court before imposing a fine.

However, (the Electronic Communications (Miscellaneous Provisions) Bill, which will be published later this year, will give ComReg back its original power to fine companies up to 10 per cent of turnover, according to a spokesman for the Department of Communications, Marine and Natural Resources.

This power was lost two years ago when EU regulations on electronic communications were passed in Ireland. Telecom sources said last week that it would be early next year before the draft bill becomes law.

Mike Byrne, a commissioner with ComReg, said the new fines were needed if ComReg was to be able to the market effectively. “The present level of fines that can be levied in this multi-billion euro industry is €3,000,” said Byrne.

“We need to have effective penalties. These new fines should bring us back into line with those that can be imposed by the financial regulator.” ComReg has publicly called for additional powers to allow it carry out its functions more effectively.

“The spate of overcharging issues last year further illustrated the need for such powers to be extended,” said Byrne. “We're not afraid to go to court, but if we had additional powers, it would probably remove bottlenecks.”

Last month, ComReg said that legal challenges to its decisions were threatening the development of the Irish telecoms market. The Organisation for Economic Cooperation and Development (OECD) and the European Commission have already expressed similar concerns.

“ComReg fully recognises the rights of affected persons to bring appeals, but is concerned that they should be concluded quickly so that regulatory certainty can be brought to the market,” said Byrne. “Businesses tend not to invest when the environment in which they are operating may be uncertain or unpredictable.”

Eircom, Vodafone and O2 are among the companies challenging ComReg's decisions on market dominance.

Why not use the powers they have now? I believe that they have never fined someone even with the paltry fines. Why not use the powers they have, fine them the max amount and then go back to the DCMNR saying "we're taking them to task but these fines are a joke". I'm sure they could do with the experience of fining the big players and dealing with the appeals that will no doubt occur.

I'm pissed off too that the DCMNR is delaying this bill for another year. This bill has been about 2 years or more at this stage.

Sponge Bob

They also have penalty clauses for non rollout in spectrum licences, straightforward contract law. They have never enforced them either.

Comreg would sooner snort cold earthworm saloo in public than enforce their regulations consistently...no matter what the law says.

Tom Young

Mike Byrne is being very political here, the reality is that the courts will probably have last word on the fines regardless of the intentions of the regulator.

Use of rhetoric such as fines applicable to overbilling is indicative of a completely inexperienced commissioner.

Fines should be used to provide teeth or balls, not to levy penalties on mistakes that are handled generally well by companies. If a regulator openly makes statements such as this it is not exactly in synch with pro-competition, investment and co-regulation in the information society for Ireland.

Capt'n Midnight

€3,000 - that's about how much a incorrectly configured dial up router woud go through in a month..

Tom Young

Router configuration is generally a users own fault, I'm sorry but dial-up protection is like wireless hopping and phishing. No patience for same at all.

ComReg should focus on blagards, where fines are concerned.

The Internet Dial 'hijack scam' and the blockage of national dial plans is a crime against welfare economics and international diplomacy. Why do you think 4 ambassadors visited Ireland at the time to complain about the unfair treatment of their colony and soverign states. Not good.

Capt'n Midnight

Tom Young wrote:

Router configuration is generally a users own fault, I'm sorry but dial-up protection is like wireless hopping and phishing. No patience for same at all.

Point is that the fine the regulator can impose could be paid for by one user with one problem in one month, mainly because the broadband option still isn't available in all areas. If they offered BB all over then they'd loose such windfalls.