Eircom seeking funds for DSL networks (apparently)

kamobe

Eircom seeking funds for DSL networks

I've been away for a bit, so i apologise if this has been posted earlier and i havent seen it

Regardless it makes an interesting read.

"Eircom will apply for Government funding this month to support a project to roll out fibre optic and digital subscriber line (DSL) technologies in the regions. The project represents a major U-turn for the firm, which in February pulled out of a similar €37 million (£29 million) State-backed scheme."

"It will target a number of towns in the Border, midlands and western regions, which have been highlighted as priority centres for industrial development. The application for funding will be made to secure structural funds for the development of regional e-commerce and communications infrastructure."

Victor

The scheme that they pulled out of was for the broadband connections between the exchanges, not between the exchanges and customers. I imagine the current proposals are on the same basis.

SkepticOne

I read this a while ago and got depressed. What Eircom is saying is that if Ireland wants DSL it will have to cough up the dosh. Another example of how the country is being held by the gooleys.

They want the government to subsidise the rollout of DSL so that Eircom can charge monopoly rates of £200 per month from customers.

There are plenty of other ways of encouraging DSL that don't involve handing money over to a monopoly.


1. Get LLU sorted out. Underwrite the the LLU charge if necessary so that uncertainty is removed.

2. Increase grants for any company, including Eircom, to make use of LLU.

3. Get the bitstream wholesale pricing sorted out.

4. Give extra powers to the ODTR and make them more accountable.

Do not subsidise monopolies. The Global Crossing project subsidised bandwidth into the country but none of these savings got passed on to the consumer because the market was not competitive.

Spend money to increase competition, not subsidise monopolies.

Gerry

I don't think you get it. In most european which have dsl, it is subsidised by the government. It is entirely logical that eircom should ask for funding for dsl in the country, since it is not financially viable, at least not without a huge % takeup of dsl (not terribly likely). So the government should do some research on it, and then pump money into developing dsl infrastructure, which will be accessible to eircom and the other telcos.

SkepticOne

You will notice that I am arguing for subsidy, just not in the way Eircom are suggesting.

SkepticOne

Originally posted by SkepticOne
You will notice that I am arguing for subsidy, just not in the way Eircom are suggesting.

I should add that I have no problem with Eircom asking for the subsidy but the Government should prioritise measures that open up the market to competition. I'm worried that Eircom will use the money to develope infrastructure at the tax payers expense and then charge monopoly prices for accessing it (either directly or through OLOs).

rardagh

Originally posted by SkepticOne

I should add that I have no problem with Eircom asking for the subsidy but the Government should prioritise measures that open up the market to competition. I'm worried that Eircom will use the money to develope infrastructure at the tax payers expense and then charge monopoly prices for accessing it (either directly or through OLOs).

There was a question on the funding of DSL by the government answered the day before yeterday in a Clarification Document from the DPE's consultants.

Q43: Could the Minister clarify whether she would enter into a contract with any operator
with SMP designation for funding the delivery of services which have not been
unconditionally approved by, or agreed with, the ODTR? Could the Minister clarify
whether she would enter into a contract with any operator with SMP designation for
funding the delivery of services which are the subject of High Court Proceedings
against the ODTR?
A43: Tenderers should note that any company entering into a contract with the Minister
will be obliged to warrant that it is familiar with and can comply with all laws that
may in any way affect the conduct validity or performance of the agreement (Clause
3.7 of the contract). Furthermore it undertakes to carry out the Project in compliance
with all applicable law, regulations, statutory orders and any requirements and codes
of practice of competent authorities affecting the project and/or the company (Clause
4.3(f)). Tenderers should note that these references to applicable laws and regulations
and competent authorities include competition law, telecommunications regulation
and the ODTR (where appropriate).
In addition, Tenderers should note any requisite consents in their tender as specified
in sections 4.2 and 4.5 of the ITT document, and the requirement to obtain consents
within a period, as noted in clause 2.4 of the draft contract as given in Appendix II of
the ITT document.
Tenderers should note any relevant unresolved litigation under the heading of
dependencies noted in item 6 of section 4.2 of the ITT.
Q44: Could the Minister clarify whether she would enter into a contract with any operator
with SMP designation for funding the delivery of services at a price which is higher
than that which the ODTR has approved?
A44: Please refer to the first paragraph of clarification question A43 above.
Where a contractor is required to alter contracted tariffs or other conditions as a
result of a regulatory decision, the contractor should notify the Minister, and an
alteration to the contract will be arranged, if appropriate.

SkepticOne

Thanks. That clears it up

oscarBravo

Originally posted by kamobe
Eircom seeking funds for DSL networks
"It will target a number of towns in the Border, midlands and western regions, which have been highlighted as priority centres for industrial development. The application for funding will be made to secure structural funds for the development of regional e-commerce and communications infrastructure."

From an email to me from an Eircom executive
As you know ISDN service is not possible now or in the future... Fixed Wireless Access is also not possible...

If Eircom are granted funds under this scheme, and I am not offered a broadband connection within 30 minutes I will be forced to temporarily forget that I am a pacifist.