Eir appeals decision of ComReg on wholesale prices

Eircom has brought an appeal in the Commercial Court against a decision of the communications regulator, ComReg, to set new rates for the wholesale prices it charges for access to its services.

Eircom Ltd is challenging the decision, made on December 20th last by ComReg, seeking to set it aside or that it be reconsidered in accordance with the court’s judgment on the matter.

Mobile voice call termination (MVCT) is a wholesale interconnection service offered by mobile or fixed service providers whereby calls are connected to the customers of those other providers.

ComReg says that among the main competition problems arising in the MVCT market is the ability for a provider, by virtue of its market power, to set its wholesale rates above the competitive level.

Prices

At the retail level, the subscriber making the call to another mobile bears the entire cost of the call. This ultimately feeds into retail prices charged by other service providers for making “off-network” calls to mobiles.

The new pricing regime, which replaces the previous one, is due to come into operation on March 1st next. It sets the charge for wholesale access services as well as for certain wholesale broadband prices.

Eircom, which says it is not possible to say exactly what the value of this change will be, claims it will have a significant financial impact on the company but will “greatly exceed” €1 million.

The case was admitted to the fast-track commercial list on Monday by Mr Justice Denis McDonald on the application of Michael Cush SC and with the consent of Declan McGrath SC, for ComReg. Sky Ireland and Vodafone Ireland were also joined as notice parties.

The judge gave directions on how the case should proceed including in relation to an application from Eircom for a stay on the ComReg decision