Smart crisis damaged telecoms regulation system, committee told

Last week’s Smart Telecom crisis, in which 55,000 customers were disconnected without notice, has damaged the regulatory system for telecommunications, an Oireachtas committee heard today.

Members of the Communications Committee were discussing the aftermath of the October 2 incident, which followed a billing row between Smart and Eircom.

Fine Gael TD Bernard Durkan told the all-party body: “The shenanigans that unfolded in the last 10 days or so was appalling, to say the least. I think it has done irreparable damage to the whole concept of regulation.”

Green TD Eamon Ryan claimed that Eircom is the dominant monopoly in the telecommunications market which is exerting its dominance over competitors and the entire regulatory system.

“Smart Telecom was massively resourced and seemed to have owners who had very deep pockets and it still could not compete,” he said.

Comreg chairperson Isolde Goggin accepted difficulties occurred but that competition and regulation in the market had improved during the past decade.

“We have to acknowledge that consumer confidence has taken a knock but it’s important not to talk down the industry.

“Consumers now have a choice of over 30 different operators which they can go.”

She said there were some very successful companies in this industry and prices had declined in the last 10 years of regulation.

Referring to the Smart incident, Mr Durkan added: “In this particular situation, the consumer was left with no service whatsoever, no recompense whatsoever except to complain to public representatives.

“There is absolutely no possible way that the system can tolerate another event of that nature and magnitude because public confidence in the regulatory system will disappear completely.

“The plug was pulled and the consumer was left high and dry. The minister should now take action to ensure that any more such nonsense will not be tolerated.

“The domestic and commercial consumer is punished for being the jam in the sandwich.”