Eircom faces fines over deadline

EIRCOM faces the prospect of hefty fines from tomorrow after the telecoms regulator threatened it with court action for repeatedly ignoring its orders.

ComReg has given the former State-owned phone monopoly until 11am tomorrow to comply with a direction that will force it to throw open parts of the fixed-line network to facilitate rivals.

Other phone companies, such as Esat BT and Smart, have asked Eircom to make it easier for them to have access to the network, to allow them to offer a wider range of broadband internet services.

ComReg said Eircom could not be allowed to stand in the way of other operators and prevent innovative broadband offerings and pricing strategies from reaching the market.

The regulator first cracked the whip last month by issuing two directions to the company, one of which required Eircom to provide a response to requests from other companies for enabling new technological developments. This direction was re-issued earlier this week.

“Failure by Eircom to comply with this latest direction may result in ComReg applying to the High Court for an order forcing Eircom to comply with the direction,” ComReg said. “Furthermore, ComReg may apply to the High Court for the imposition of a financial penalty if Eircom does not comply.”

The regulator also said Eircom was in breach of its legal obligations and that its continued failure to co-operate would cause “serious economic and operational problems” for other telecom companies.

Eircom has appealed the decision already.

The group representing Eircom’s rivals welcomed ComReg’s move and said Eircom’s decision to appeal was a delaying tactic and should not be entertained.

“Eircom’s latest action is just a further disgraceful example of one company’s efforts to block greater choice and value for consumers,” said Iarla Flynn, chairman of alternative telecom operators’ group ALTO. “We fully support ComReg’s actions on this matter.”

Esat BT chief executive Bill Murphy said last week that Ireland would continue to lag the rest of Europe for broadband take-up unless the Government and ComReg intervened to clear obstacles placed by Eircoms. Ireland currently sits near the bottom of the EU table for broadband availability.

The dispute centres on so-called Local Loop Unbundling (LLU), the process for allowing rival operators to install their own communications equipment in exchanges around the country. This would have the advantage of allowing Eircom’s rivals to deal with their customers more directly.