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ADSL is delayed following ODTR statement
Thursday, September 27 2001
by Matthew Clark


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.