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In the papers 01 May  
Tuesday, May 01 2001
by Paula Mythen


Esat Fusion cuts off 2,000 "IOL No Limits" customers for using the service
"excessively" | Etain Doyle, has told Eircom to open its local access network
to competitors



The Irish Times reports that Esat Fusion is cutting off approximately 2,000
customers who use its "IOL No Limits" Internet service because the company has
deemed them to be using the service too much. Esat sent letters to selected
customers - which it judged to be using the Internet "excessively" - last
Friday and advised them their contracts would be terminated within 31 days. The
company will continue to monitor the Internet use of its remaining 18,000 No
Limits customers for overuse and may cancel the No limits product altogether.
Dereck Kickam, chief executive of Esat Fusion, said the customers who would be
disconnected were chosen on the basis of overall usage. Customers who spent in
excess of 75-100 hours a week would be affected, he added. It is understood
several customers have threatened Esat with legal action over the withdrawal of
service. However, Kickam claimed the company was fully within its rights to
cancel the contracts. 



The same paper also reports that telecoms regulator, Etain Doyle, has told Eircom
to open its local access network to competitors for EUR13.53 per month well short
of the EUR32.50 the price Eircom had originally proposed. However, Monday night
Eircom rejected the pricing. It is understood the company may lodge a legal
challenge to the directive within the next few days. In the decision notice,
Doyle strongly criticised Eircom's lack of co-operation in the unbundling process
and noted that the company had failed to supply all relevant information. In
addition to the monthly charges for line rental, the directive sets out a full
list of fees associated with the unbundling process.



The Irish Independent reports that the management of banking software company
Flexicom has paid just IEP1 to buy back the 30 percent of the company for which
Eircom paid IEP6.5 million less than 18 months ago. The Irish Independent has
learned that Flexicom directors Pat Shiel and John Clarke have bought back the
Eircom stake for almost nothing. It is understood that Eircom has retained the
right to a 10 percent share of the proceeds if Flexicom is sold within 12 months.




The same paper also reports that NTL is in early stage talks with AOL/Time
Warner, about a possible partnership in Europe, bartering NTL broadband network
for AOL's content.



The Irish Examiner reports that Imagine's 20,000 subscribers are waiting on a
decision from the mobile operator on what will happen to their numbers. Cellular
3 is thought to be in discussions with bot Eircell and Meteor. If customers move
to Eircell, they are likely to keep their numbers and accounts, however a move to
Meteor would entail a number/phone change. Part of the problem for Imagine in
selling on its customers base is that Meteor have only 55 percent network
coverage at present, while Imagine's phones are Eircell handsets with Eircell SIM
cards. A decision on how many customers pass on to Eircell is expected within
days, with money raised to be lodged with the Supreme Court.



The Financial Times reports that Internet service providers are lobbying the UK
government to amend the tobacco advertising bill, which they believe sets a
dangerous precedent by treating them as publishers, rather than simply conduits
for information. The Internet Service Providers' Association will argue before UK
ministers next week that the bill contradicts European regulations and could
create a framework for making providers liable for content accessed by their
customers via the Internet.

 

The same paper also reports that US software company, Computer Associates, has
denied a media report that it used "tricky" accounting practices to inflate
revenue figures. Sanjay Kumar, CA's chief executive, on Monday morning held a
conference call in which he denied a report in the New York Times that accused
the company of using accounting tricks to "systematically overstate its revenue
and profits for years".

 

The Wall Street Journal reports that BT is in talks to sell its 20 percent stake
in Japan Telecom together with its interest in J-Phone to British mobile-phone
operator Vodafone for more than USD4 billion, people familiar with the situation
said. The discussions come as BT is also holding talks to sell its stake in
Airtel Moviles SA, the Spanish mobile-phone operator, to Vodafone, which controls
Airtel. Both deals could be announced as early this week when BT unveils a
proposal designed to restore investor confidence in the flagging phone company. 



The same paper also reports that Excite At Home told employees is to cut another
380 jobs, or 13 percent of its work force. According to an internal memo, the
cuts will occur in all business units, although certain unspecified business
units "are impacted more heavily." The move will reduce total work force to
about 2,470.