Telecoms regulator, Ms Etain Doyle, has told Eircom to open its local access network to competitors for less than half the price the company had originally proposed. Under the directive, Eircom would charge other telecoms operators €13.53 per month for each copper line opened to competition through a process known as local loop unbundling.
This process has the potential to increase significantly the range of innovative high-speed Internet and multimedia services available to businesses and consumers. However, last night Eircom rejected the pricing. It is understood the company may lodge a legal challenge to the directive within the next few days.
"We are extremely concerned at the level of pricing that the director has set," said an Eircom spokesman. "We believe it in no way reflects the cost to Eircom of providing the infrastructure associated with unbundling."
The monthly charge places the Republic among the midrange of EU states and is significantly below the €32.50 figure, which Eircom originally proposed on January 1st.
In the decision notice, Ms Doyle strongly criticised Eircom's lack of co-operation in the unbundling process and noted that the company had failed to supply all relevant information.
"Eircom's approach with respect to costing and the level of response and co-operation on this issue is not acceptable," said Ms Doyle.
The fee level may encourage other telecoms operators to reengage with a committee established to facilitate unbundling the local loop.
Several telecoms operators withdrew from the unbundling process in recent months citing Eircom's lack of engagement with the process and increasing cash squeeze in the sector.
A spokesman for Esat said the firm "cautiously welcomed" the directive and the charges for access. However, he said the emphasis would now switch to implementation.
In addition to the monthly charges for line rental, the directive sets out a full list of fees associated with the unbundling process.
Operators will have to pay a one-off connection charge of €119.73 on a rented line and faults will be cleared at a price of €59.61.
