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ALTO lashes out at the ODTR
Thursday, March 14 2002
by Andrew McLindon


A group representing telecom companies has said its members lack confidence in
the ODTR and its ability to liberalise the telecoms market in Ireland.  





 

According to the Association of Licensed Telecom Operators (ALTO), its recent
survey of members has shown high levels of dissatisfaction with the way the ODTR
carries out its functions. ALTO members include companies such as Esat, Worldcom,
Cable & Wireless and NTL. 

 

ALTO said that in its survey the ODTR had been rated "well below average" and
"below average" in terms of satisfaction in areas such as commercial
awareness, clearness of strategy, and transparency.  

 

"This is a very difficult time in the industry and the ODTR must act as
champion of competition. The results of this survey indicate that they have
failed to fill this role to date," said ALTO's chairman, Iarla Flynn





ALTO members also said they there was a lack of awareness and understanding by
the ODTR of the economic difficulties facing the industry and called for the ODTR
to demonstrate more transparency by "engaging in a more pro-active and
constructive manner with operators." 

 

"For the market to grow on a sustained basis we need a clear statement from the
ODTR as to what its priorities are and when and how key issues will be tackled.
Operators also need transparency in terms of the analysis behind these
conclusions," commented Flynn.





The major concern for new entrants, Flynn told ElectricNews.Net, was the high
costs of access to mobile networks and Eircom's networks, and he called for the
ODTR to act immediately to reduce these costs.  

 

"For instance, payments for access to mobile networks cost operators over
EUR300 million per annum and this cost is being passed on to consumers. Since
both Vodafone Ireland and Digifone have significant market power the ODTR can
under law force them to offer rates at cost price and that it what we are looking
for. At the very least, the ODTR should announce an investigation into their
price regimes and set interim rates in the meantime," remarked Flynn.  

 

In response, the ODTR told ElectricNews.Net that it was surprised at the
statement given the "extensive" contacts it has with individual operators and
with ALTO itself, which are not reflected in ALTO's statement.  

 

"ALTO is well aware of, for example, the substantial progress that has been
made on leased line delivery over the last twelve months, the progress with
unbundling the local loop, the launch of the 3G competition and discussions that
are taking place with respect to the mobile market and in particular termination
rates," said a spokesperson for the ODTR. The spokesperson added that the ODTR
operates an "extensive consultation process" with the industry.

 

ALTO also said that its members regarded the introduction of Communications Bill,
which gives the ODTR increased powers, as a top priority for the government.
Flynn said that the Bill, which has been published, should be passed into law
before the upcoming general election. 

 

However, the Dail is only due to sit for a handful days between now and the
announcement of the Election. Flynn though said it was still possible for the
Bill to be enacted during that time.