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ALTO Urges Action on eircom Access Charges

June, 2004

ALTO, the industry association representing alternative operators in Ireland’s communications sector, has called on the telecoms regulator, ComReg, to implement a new approach for setting access charges for eircom’s network.

ALTO’s action follows the publication of a ComReg report in relation to cost submissions from eircom. These annual cost submissions from eircom support the on-going development of costing models which allow the regulator to set prices for access to eircom’s network for other operators.

Last December, eircom provided data to ComReg which would have resulted in extra payments, of up to E4m, from other operators to eircom. Following a ComReg review, this turned into a refund from eircom to other operators of E1.7m. However, at a meeting with the regulator on 9 June, Eircom produced new information which cancelled out these refunds.

“This sequence of events is disturbing. We are gravely concerned at what has happened, particularly, as there was a similar incident in December 2003. ComReg themselves have questioned whether this was a “deliberate” action by eircom to mislead the regulator and impose a large cost on other operators.”, said Flynn.

“ComReg needs to simplify these matters by introducing a wholesale price cap, which would reduce all access charges in line with inflation each year. ComReg has already accepted this idea in principle – now is the time to deliver. The new approach should also provide for a significant penalty on eircom for any delay in providing data or any attempt to increase charges retrospectively”, he said.

ALTO's members include :

Budget Telecom
Cable & Wireless
Chorus
Colt Telecom
Conduit
Energis
EsatBT
ESB Telecoms
MCI
Meteor
NTL
Swiftcall
Smart Telecom
VarTec Telecom

ALTO's website is available at www.alto.ie


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