ALTO hits out at ComReg

The association representing alternative operators in the communications market has slammed a new wholesale broadband service introduced by eircom.

ALTO has also heavily criticised the role played by communications regulator ComReg in managing the service development process.

Partial Private Circuits (PPCs) is a wholesale service from eircom - similar to leased lines - which should allow other operators to provide nationwide broadband services to businesses at a significantly improved price.

The introduction of PPCs was first proposed by ComReg in July 2001 as a key enabler of broadband competition, and a launch deadline was set for last December.

According to ALTO an effective PPC product would have significantly lowered the costs of leased line services for consumers and businesses round the country.

However, the group claim that eircom has introduced a service which actually increases wholesale prices to operators.

Iarla Flynn, chairman, ALTO said today : “The prices for the service, which were only released by eircom to operators in recent weeks, show significant increases in many cases and only marginal savings in others.

“How can any company be expected to make use of this service, when it will actually increase their costs of doing business?”

“We have to ask what ComReg have been doing for the last 12 months as this raises serious questions for the competitiveness of Ireland’s communications sector.

“ALTO are seeking a meeting with Minister Ahern to highlight these issues,” Flynn concluded.

Eircom currently supplies 21,000 leased lines directly round the country with a further 9,000 leased lines supplied by other operators on eircom’s network. This business is estimated to be worth about €125m to eircom per annum.