Eircom plans ADSL costs at top of scale

Eircom's proposed costs for high speed Internet lines, or ADSL, are among the highest in the world, with the price of installing a line nearly three times the cost charged by British Telecom, according to a reference document published over the weekend.

The charges for ADSL are included in Eircom's 115-page draft Access Reference Offer document, setting out its proposed terms and costs for unbundling the local loop - giving competitors access to the copper phone lines that run directly between local phone exchanges and homes and businesses.

The company was required to provide the document by December 31st last to comply with an EU demand for all member-states to begin unbundling by January 1st, 2001. ADSL, asymmetric digital subscriber line, is a technology that increases the speed at which ordinary phone lines can access the Internet by a factor of 10. ADSL is viewed globally as a central element of unbundling. Unbundling will create greater competition and is expected to broaden the range of Internet, telephony and broadcast services.

According to the reference document, Eircom has suggested a wholesale price to other carriers of €483.77 (£381) per year for line rental, and a monthly recurring charge of €32.15. By contrast, BT's line rental charges are about €160 per year.

The Office of the Director of Telecommunications Regulation said that its study of international costs showed that the average monthly cost for most countries ranged between €11.50 to €13. The regulator had expected a range of €15.90 to €17.10 for fully unbundled loop monthly rental in the Republic.

The draft reference document also limits competitors to offering ADSL over the local loop, rather than SDSL, or symmetric DSL. Competitors want to supply higher-quality SDSL to businesses, since it would cost companies far less than the leased lines currently available.

The telecommunications regulator, Ms Etain Doyle, said in a recent statement that she did not believe EU non-discrimination regulations would allow Eircom to block SDSL.

According to the proposals, competitors are also not allowed to sublet lines or share space on lines from Eircom.