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Row brews over Eircom's low-cost DSL

Guess what? BT is the underdog

Esat BT has attacked Eircom's introduction of a new DSL service in Ireland as anti-competitive because the incumbent did not offer a wholesale version before its launch.

Eircom said today that it will introduce a new mass market, low-cost broadband DSL service from March 2003. With an intended monthly charge of €45 per month (excluding VAT and line rental) for access speeds of up to 512kbs, it is half the cost of similar speed DSL offerings from Esat BT. The minimum speed of Eircom's new product will be 256kbs.

Esat BT however has said that it is "deeply concerned" that is has not been given the chance to match the offering. "Eircom has not given us the opportunity, as we are legally entitled to, to offer this service. This is a breach of the regulatory framework," said Una McGirr, communications director for Esat BT.

McGirr told ElectricNews.Net that the company now intends to challenge the launch of the service through the telecoms regulator ComReg. This is likely to delay its availability.

McGirr also remarked that Eircom's actions in this matter closely resembled what occurred when the incumbent initially attempted to introduce text messaging from landlines in July of last year. The move was blocked by ComReg, the Irish regulator, in December because Eircom did not supply other operators with a wholesale product and the matter was only resolved on 22 January after Eircom agreed to provide competitors with a wholesale price, so that they could offer a similar service.

"In that instance, the delay gave Eircom a lot of time to promote the service and build awareness of it, while other operators had to wait and see whether it would be economically viable for them to provide the same product. It would appear that Eircom is doing this kind of pre-selling again with its DSL offering and it is anti-competitive," said McGirr.

A spokesperson for Eircom said it would not comment on Esat BT's accusations, but commented that it had notified ComReg of its plans and will now focus on finalising the full pricing of the service, including pricing of the wholesale equivalent, in consultation with the regulator and the industry.

"We will deliver a wholesale offering to competing telecoms operators, including our own retail business, to provide the new self-install DSL service to their customers," said Eircom's Chief Executive, Philip Nolan, in a statement announcing the new service.

For its part, ComReg said in a short press release that it welcomed the movement towards lower pricing for DSL, but that as the major operator in the market Eircom had obligations to provide an appropriate wholesale equivalent and to satisfy competition law.

"ComReg will be working with the industry to ensure that an appropriately priced wholesale product is in place and that all competitive aspects are examined before sanctioning the product," the statement concluded.

Communications Minister, Dermot Ahern, TD, has warmly greeted Eircom's decision to reduce DSL costs, but Internet users lobby group Ireland Offline criticised the manner in which it has been introduced

Chairman David Long told ElectricNews.Net that while the reduction was good for consumers, the failure of Eircom to offer a wholesale service to other telecoms operators was not good for competition in the market. He also said the move appeared to be an attempt by Eircom to raise the profile of the service before competitors could introduce a similar offering.

© ENN

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