Regulator reviews its contract with Evros on Eir's acquisition plan

The proposed merger between Eir and Evros, which is subject to approval, creates the potential for a conflict of interest.

Bob Murray, Evros Technology Group managing director. File picture: Mark Stedman

The State’s telecom regulator has said it is reviewing its long-term relationship with Evros Technology, the IT services provider that Eir plans to buy for €80m. 

The move comes as the proposed takeover creates the potential for a conflict of interest as Evros provides IT services to ComReg, which in turn regulates Eir. 

ComReg said it had reminded both Evros and Eir of their contractual and other legal obligations relating to the security and confidentiality of data.

ComReg has been highly critical of Eir in recent months following widespread complaints about the company’s customer care services.

In November, the regulator described Eir’s performance as “completely unacceptable” and noted that Eir accounted for two-thirds of all complaints received by consumers about telecom firms in the first nine months of last year. 

A ComReg spokesperson said the regulator was also engaging with its independent IT security and risk adviser and was talking to Eir and Evros “to ensure that all necessary and appropriate additional measures are put in place in the short term to maintain continued assurance of the protection of confidential data”.

The proposed merger between Eir and Evros is subject to approval by the Competition and Consumer Protection Commission.

ComReg said it works with external service providers. 

“It is a priority to ensure the integrity and confidentiality of its data and of any data belonging to third parties that is in ComReg’s possession,” it said. 

ComReg said its contracts with IT service providers such as Evros have strong provisions to protect confidential data.

Evros was established in 1990 and employs more than 450 people at offices in Dublin, Cork, Waterford, as well as in Auckland in New Zealand.

The group includes Evros, Digital Planet, itContracting, Comsys, eSource, and mySoftware.ie. 

Eir chief executive Carolan Lennon said the deal was an important step in the company’s “ambitious investment strategy for Ireland” and would allow Eir to offer a “one-stop-shop” for IT and telecom services.