ODTR reviewing price cap on Eircom's services

The regulator is reviewing the current price cap that has applied to a range of services provided by Eircom since January 1, 2000.

In the first of three consultations which will take place this year, the ODTR seeks views form interested parties on what services should be subject to a price cap.

A key purpose of price capping is to protect consumers from the high prices that might result in the absence of competitive constraints. It also encourages greater efficiency in the provision of services by the operator concerned.

Under the existing price cap, Eircom is required to make price reduction of 8% per annum in real terms and over the period since its introduction, Eircom has reduced prices by more than this.