ALTO slams eircom's new Broadband service

ALTO, the association representing Alternative Operators in the communications market, has slammed a new wholesale broadband service – Partial Private Circuits - introduced by eircom.

The group 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 significantly improved prices.

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.

Nine months later eircom has introduced a service which actually increases wholesale prices to operators.

PPCs have been introduced throughout the EU and have led to significant savings in the cost of broadband services.

For example, in the UK, operators have seen reductions of 40%. Consumers there have benefited directly from these reductions.

"Similar reductions could be expected in the Irish market with the introduction of a realistic service," said Iarla Flynn, chairman, ALTO.

"However, what has been offered to operators completely fails to meet market requirements.

"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?"

The pricing for broadband circuits outside Dublin is particularly unattractive. A broadband circuit from Dublin to Shannon shows a price increase of up to 50%.

ComReg has stated that PPCs would 'stimulate a competitive market, provide for effective competition, encourage economic efficiency, and provide benefit to end users'.

The service now on offer will meet none of these objectives according to Flynn.

Mr Flynn said: "In response to strong encouragement from ComReg, and looking at the huge savings gained in other countries, operators have spent the last 12 months working on getting this new service launched.

"However, this has been a total waste of effort and once again it is the consumer who loses out. We have to ask what ComReg have been doing for the last 12 months.

"The outcome of this process raises serious questions for the competitiveness of Ireland’s communications sector. We are seeking a meeting with Minister Ahern to highlight these issues."