Pressure is mounting on Eircom, the telecoms regulator and the Government to break the deadlock on the roll-out of high-speed internet technologies. The European Commission is losing patience with incumbent telecoms operators, such as Eircom, which are refusing to give up their monopoly on the local loop, and the team of EU national regulators who seem powerless to act.
This week the competition directorate extended an investigation into Eircom's handling of the process to open its local network to competition. The threat of a hefty fine, possibly as much as 10 per cent of turnover, is looming large. The Government may also face legal action from a separate directorate for its failure to push through unbundling. The bottom line is that the Commission feels snubbed.
Despite passing a regulation mandating access to local telecoms networks, the European Commission has failed to persuade incumbent operators to give up their hold on the local loop. Competitors were supposed to gain access to local networks from January 1st, 2001, but in most member-states the reality has been tortuous negotiations and stalling.
Gaining access to the local network - the last mile of copper wire that links into almost every home in Europe - is the goal for competitors. It would enable firms to provide innovative multimedia services direct to customers.
Research consultancy Gartner this week published figures showing just 1.35 per cent of homes in Europe have broadband high-speed internet connections. The survey shows the Republic in the same league as Spain, Greece, Portugal and Italy. It also pinpoints the cause of the delay as a "regulatory nightmare" and advises EU ministers to change their policies.
Eircom's obstinate behaviour towards both the EU regulation on unbundling and the telecoms regulator's rulings is legendary. The company has persistently used legal actions to delay progress. It is currently challenging interim prices set by the regulator for competitors to access its own networks. It is also involved in a stand-off with the regulator over its introduction of a high-speed internet service called i-stream.
The telecoms regulator, Ms Etain Doyle, has stood up to Eircom's posturing but has only limited powers to force greater competition. She has not been helped by the Government, which has effectively shelved a Communications Bill that would strengthen her powers. So it was no surprise that the Commission moved this week to curb the powers of national regulators and beef up its own powers.
The question is, will it follow through on all of its own bluff and bluster, and use penalty powers against Eircom and the Government?
