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High stakes at play in fibre broadband regulation row

Eir is fighting ComReg’s decisions to limit its ability to compete on pricing in the market for wholesale high-speed broadband

Eir wants to overturn a decision by ComReg to limit its ability to compete on price in the wholesale fibre broadband market. Photograph: Nick Bradshaw

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Thu Dec 21 2023 - 06:00

Last week the European Commission gave its view on ComReg’s recent draft review of the Irish telecoms market for the next five years, which once again cited Eir as having “significant market power” in the market for wholesale high-speed fibre broadband.

ComReg’s decision means Eir would be obliged to provide products and services at regulated prices to rivals (essentially Virgin Media and Siro) who do not have networks or who have insufficient network coverage of their own. This is designed to allow them to compete in providing retail high-speed broadband services to homes and businesses and it prevents Eir from discounting its services over the period.

ComReg said the commission had welcomed its wholesale pricing proposals, noting “these should encourage ongoing investment and innovation in next-generation broadband services, including fibre-to-the-home”, adding that “ensuring fair competition means that, ultimately, consumers can benefit from having a wide choice of service providers offering high-quality next-generation broadband services at competitive prices”.

Eir took a different view, noting in a statement to The Irish Times that the commission’s view was that ComReg’s regulatory approach was “overly conservative”.

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Eir chief executive Oliver Loomes said: “We also note that ComReg’s current regulatory approach to the market has been effectively time-limited and, in order to satisfy the European Commission, ComReg has been required to commit to further deregulation and an annual review of their approach in just 12 months.”

Regulatory decisions are rarely black and white, of course, and the two sides have chosen to focus on the elements of the commission’s letter that suits their position.

This is a big issue for Eir. Xavier Neil, the French businessman who is Eir’s majority shareholder, won’t want to wait five years for the company to be free to compete on pricing for wholesale high-speed fibre broadband. Eir is still fighting ComReg’s last market review decision, from 2018, recently lodging a High Court challenge over a decision it says limits its ability to compete in the wholesale broadband market.

If it manages to overturn the 2018 decision in the courts, Eir would effectively make ComReg’s latest review null and void and allow it to freely compete on pricing with Virgin Media and Siro. With billions being invested in fibre broadband here, this is a high-stakes game.

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