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Industry bodies debate over Net access 
Thursday, November 22 2001
by Louise Carroll


The Chambers of Commerce of Ireland and IBEC are in the midst of a debate over
the implementation of two Net access technologies, broadband and flat-rate
dial-up.

 

"We are already one of the most expensive countries in Europe for leased lines
and we think that always-on flat rate Internet access should be the priority,"
Karen Hynes, manager of e-business services for CCI (Chambers of Commerce of
Ireland) told ElectricNews.Net. The CCI said it "completely rejects" the
recommendation by IBEC that telecommunication providers should be allowed raise
the cost of services to businesses. 

 

The CCI said it believes that the most important service to SMEs is to have
flat-rate dial-up access to the Internet. The CCI supports this argument with its
annual survey results that found that 81 percent of Irish SMEs are content with
dial-up access and do not require broadband. The CCI explained that SMEs are not
using the kind of applications that require broadband, as most SMEs use the
Internet for e-mail, communications and to source information.

 

In order for flat-rate access to be available, the CCI argues that the unbundling
of the local loop should be given top priority in Ireland as well as the
introduction of the Communications Bill, which gives stronger powers to the
telecoms regulator. 

 

But the IBEC believes that broadband is the priority. It argues that the
ODTR-mandated price caps on telcos, including Eircom, should be removed in order
to stimulate competition and rollout broadband services. "Broadband is
analogous to the mobile phone. Before people had them, they didn't know they
needed them. We believes that the SME market needs broadband," Tommy McCabe,
director of the Telecommunication and Internet Federation for IBEC said.

 

McCabe also suggested that the government should help provide incentives for
businesses and consumers to take-up broadband services. He gave an example that a
business or residential broadband user could set his broadband bill against his
tax bill as one way the government can stimulate the demand for broadband. 

 

Both organisations agree that the Communications Bill is imperative to improve
Internet access developments in Ireland, but are frustrated by the lack of
progress that the bill is making through the Dail. "The inexplicable delays in
the introduction of the Communications Bill, the fact that the local loop in
Ireland is still effectively monopolised by one operator and the long delays in
re establishing the Information Society Commission make a mockery of Ireland's
pretension to be an e-commerce hub," said John Dunne, chief executive of the
CCI.

 

The Communications Bill, which has been described as crucial to the effective
regulation of the telecoms sector in Ireland, has not been included in the
government's legislative programme for the Autumn. In fact, the bill is not
expected to be passed through the Dail before a general election next year. The
new legislation, if passed, would replace the ODTR with a three-person
commission. The commission would have broader powers over telecommunication
regulation including the authority to impose fines.

 

For more information visit HREF="http://www.chambersireland.ie">http://www.chambersireland.ie and HREF="http://www.ibec.ie/tif">http://www.ibec.ie/tif