Regulator may yet force Eircom to open network

Communications regulator ComReg has not ruled out taking steps to force Eircom to open a key part of its network to its competitors.

In a statement yesterday the regulator said that it was disappointed with Eircom's proposals to allow its competitors access connections between its exchanges and individual consumers and businesses.

The regulator believes that competition on this part of the network, known as the last mile or the local loop, is vital to the development of broadband - high speed internet access - in the Republic.

The State is 19th on an Organisation for Economic and Co-operation and Development (OECD) list of 22 countries in terms of broadband development.

This is seen as a major barrier to attracting mobile investment and job creation.

Earlier this week, Eircom delivered a report to ComReg and its competitors detailing how it intended to open the local loop to the State's other operators.

ComReg's statement said it did not agree with many of the views expressed by Eircom in the document.

It added that "it is ComReg's view that Eircom's response is disappointing in a number of respects".

"The response fails to recognise obligations which ComReg believes Eircom has in terms of meeting their wholesale customers' requests," the statement said.

A ComReg spokesman said the regulator had not ruled anything out in terms of the action it could take to speed up the process.

ComReg can issue a directive that could effectively force Eircom to open up the last mile to competitors.

However, the company can appeal this to the independent Electronic Communications Appeal Panel (ECAP), and possibly go from there to the High Court.

In a judicial review last summer, the High Court shot down a ComReg directive on the same issue because the company successfully claimed that the regulator's action did not allow it the right to go to the ECAP.

Opening the local loop would allow Eircom's competitors to use their own equipment to connect up their customers, and sell their own products and services. Currently they have to rent Eircom's lines at wholesale rates.

Eircom has agreed to tackle one important issue.

This is allowing customers who switch from its service to a competitor's local loop service to keep their number.

But the telecoms company says this will take 18 months and will cost €13 million.

ComReg said that Eircom had not provided sufficient detail to allow it assess the time and costs associated with this. It is seeking more information from the company.

An Eircom spokesman welcomed the fact that it was seeking more information from the company.

"That is just what we wanted and we have already said that we are happy to provide them with this information," he said.

He added that ComReg should complete an economic and market analysis before making a final judgement.

The spokesman said that without completing that exercise, ComReg's view of its document was only an opinion.