Eircom chief defends spend on broadband

b20uvkft6m5xwg

Available here...
http://www.unison.ie/irish_independent/stories.php3?ca=184&si=741452&issue_id=7308

Eircom chief defends spend on broadband

EIRCOM chief executive Philip Nolan lashed out at critics of the company's infrastructure investment yesterday. He defended Eircom's spend and commitment to broadband and other telecommunications projects, saying the former state company has spent over €2bn on infrastructure in the last five years.

He said its planned spend of €125m on the roll-out of DSL further reflects the company commitment to investment.


"Yes there have been regulatory and other delays in relation to the introduction of DSL. But DSL is not infrastructure. It is a service which runs over infrastructure," he said.

Mr Nolan was speaking to journalists after his presentation to the 46th annual Irish Management Institute conference in Killarney. Emphasising that €2.3 trillion of value had been lost in the global telecommunications and technology meltdown since 2000, Mr Nolan outlined a strategy for Eircom which was based on "prudent" investment.

He referred to what he called the "shotgun" approach of the past in the industry where management aimed at the top of the demand curve and invested massively on the basis of that demand coming.

Mr Nolan described himself as an advocate of the "rifle" approach where Eircom will focus on the trend line as it develops and manage its investments with the growth that emerges.

"There will be capital investment in the future. Telecoms infrastructure is important but it is not the one thing that will transform us," he said.

Eircom currently enjoys a massive share of the fixed line telecommunications market and it is possible that its second biggest competitor could scale back, opening the way further for the former state company.

Chris Horn, chairman of Iona Technologies, told the conference of the importance of developing broadband and its strategic role for the future of the economy.

He pointed to the wisdom of Enterprise Ireland in helping Irish companies outsource low skilled work in the Far East to save on costs and increase business.

He explained that foreign companies coming into Ireland may pull out when low skilled work can be done more cheaply in the Far East. The important thing for him was to co-ordinate efforts to ensure that the high skilled quality jobs for both foreign and Irish multinationals stay in Ireland.


Richard Curran Business Editor

Dangger

They have actually spent €70 million and plan to invest a further €55 million. I wonder does that include the mistakes they made along the way. Such as going with Cambridge kit when every other telco was using Alcatel, and then having to switch to Alcatel equipment. They must have flushed a bit away with that. And then of course they trialled a service initially (back in 1997 - with employees) which included full video on demand. They then decided to strip it of its bells and whistles (ie the Video on Demand) and offer us the basic service we are about to see.

Furez

Eircom are getting heavy handed now. Shotguns first and now rifles, we need to get the ICBM's developed fast!!.

Arms race, Arms race!!:p

Furez

b20uvkft6m5xwg

Attn: Philip Nolan
If you are going to use business metaphors at least get some good ones

He referred to what he called the "shotgun" approach of the past in the industry where management aimed at the top of the demand curve and invested massively on the basis of that demand coming.

Mr Nolan described himself as an advocate of the "rifle" approach where Eircom will focus on the trend line as it develops and manage its investments with the growth that emerges.

Like WTF !!??
Eircom are good at metaphorically putting a rifle to the head of the customers alright.

I think somebody has been getting soundbites from the Harvard Business Review...and not very good ones at that !

Fallschirmjager

well, 2 billion invested by EIRCOM...hmmm..now let me see -- WHO invested these billions. I have heard this from Eircom for years and lets get the facts...WE invested 2 BILLION...WE as in you and me...if i remember the facts and timelines...that was government money not EIRCOM money...However i maybe wrong, and if i am i apologise.

Also, in one respect Mr Nolan is right. Infrastructure is infrastructure and DSL is a service. Can i point out a small point to you Sir, i CAN ONLY BUY SERVICES. If you choose to invest 'my' (or your) money in infrastructure and then for 6 years dont offer SERVICES that you can recoup costs, perhaps a small review of your business plan is in order...

IF YOU BUILD IT WE WILL COME, says the film....yes you cant sell futures Mr Nolan but that is your job -- to build a company by offering products i want and balancing risk. Now i would say if you are 2 BILLION in, it is time to reap the rewards by offering such a range of products that i will be astounded and also learning from others across europe and america. You can be cynical, and say DSL has not worked...DSL is not McDonalds, you do not get an instant return..wait and see what happens to the companies that have invested. They now have time on their side-- and in business that accounts for a lot .For example, 25 years ago my mother had to get a letter from the MINISTER of COMMS (NO JOKE!) to get a phone in a six month timeframe (!) and the reason then was -- wait for it-- no one will want a phone and since not many people have them-- why would you want it?! This is now the mentality with DSL. Oh we dont believe that this is the way to go. Wait- you have dial up -- whats the problem. The answer here is -- you have to RISK. You are not risking now with this hideous DSL charge. 100 euro a month will not work -- it is the same mentality as the six month waiting list. Speaking as one of the sad gits who was a shareholder, it is now all too clear why we have some -- 'issues'. Still sir, i applaud your honesty but -- but if you want a personal view on business (and yes i do know a little of what i am talking about)...

you will never success in life by not taking risks. you will never success in business by having no risk. The bigger the risk, the bigger the potential reward, if you dont want risk -- work for the government, but because there is no risk, you will not have reward. Choose and choose wisely....

we are six years behind in Ireland because we are supposed to be impressed witha 2 billion investment. I realise that you have loads of services and i also note that you admit that because of this investment you have a dominant position in the marketplace, now i wish you the best success in the internet economy...but we need the type of foresight and risk takers that moved the company from the 6 month waiting list to the current state...choose and choose wisely...but remember you will have to risk -- something.

wormhole

Eircon's weapon of choice is short ranged and inaccurate
a BLUNDERBUS!:rolleyes:


Wormhole

Lemming

Submissions for quote of the week:

Originally posted by Fallschirmjager

DSL is not McDonalds, you do not get an instant return

no one will want a phone and since not many people have them-- why would you want it?!

I realise that you have loads of services and i also note that you admit that because of this investment you have a dominant position in the marketplace

As for the above quote., Eircom do not hold the dominant position in the marketplace because of any "wise" investment on their part (which they are apparently incapable of judging by their track record and myopic vision), but rather an incredibly stupid and pig-ignorant government handing the ENTIRE public telecoms infrastructure over to them for nothing.