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In a move that will delay the launch of i-stream, Etain Doyle issued a direction to Eircom to submit revised wholesale pricing proposals for its ADSL product.
The ODTR has asked Eircom to provide evidence that its pricing proposals were not in breach of competition law. According to a statement released by the ODTR, "Eircom have, to date, not satisfied the regulator that their proposed wholesale prices are offered on a cost oriented and non-discriminatory basis."
The government agency said the directive was to ensure that other licensed operators are in a position to compete with Eircom. The regulator has also directed the former state owned telecom that no launch can take place until 21 days after she has approved the revised prices. The decision will almost certainly delay the announced launch of i-stream, Eircom's long awaited consumer high-speed Internet service.
I-stream was set to be introduced in October with consumer monthly fees for a single connection starting at EUR99 and a connection fee of EUR125, but the debate between the company and the ODTR threatens to delay the rollout of the service. The project represents a massive capital investment over the past five years by Eircom.
"The ODTR is required to ensure that every new product is offered on a cost oriented and non-discriminatory basis," the ODTR said. "We have reviewed Eircom's position and the issues carefully and believe that the framework can be adjusted in a way that meets these objectives and enable Eircom to launch. I am looking forward to receiving new price proposals from Eircom."
Last week the ODTR said it was reviewing a letter received by Eircom "as a matter of priority." The letter referred to the likelihood that telecommunications regulator Etain Doyle would implement a price structure on Eircom's new wholesale DSL service. According to the letter, Eircom said it will "immediately seek legal redress in the event of such a price structure being imposed."
The row between the two organisations erupted the previous week when Eircom was directed by the ODTR to provide additional information on its wholesale ADSL product. Subsequently Etain Doyle indicated she had serious concerns about the prices proposed by Eircom, which hopes to charge an EUR75 connection fee to competitors who want to offer the service. Doyle said she was not satisfied that the company's proposed wholesale prices were cost oriented and non-discriminatory and it is understood that the ODTR wants to lower the connection fee to EUR50.
However a spokesperson for Eircom told ElectricNews.Net on Thursday that the prices it gave the ODTR in July for the wholesale service were the only sustainable ones. "Basically the position is that we are happy to cooperate in what is an identical mathematical exercise that we have already completed with the ODTR," said the spokesperson.
She continued, "The price that we have originally proposed is cost oriented and we are not going to be able to sustain the service if we have to operate at a loss. At this stage the regulator is continuing to delay the launch of DSL."
ADSL technology will increase the speed of Internet access for customers by up to 30 times that of standard telephone lines. The service will bring high bandwidth information over ordinary copper telephone lines, and it will eliminate the need for customers to connect to, and disconnect from, the Internet.
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