Phone charges set to rise 5%
The increase follows on a raft of other price hikes over the past five weeks including a 13% increase in electricity charges and an 8% rise in bus and train fares.
But last night the Communications Commissioner Etain Doyle, who regulates the telecom sector, said the decision to ease the price control on the main service provider struck a balance between consumer and phone company interests.
Eircom would not comment on the outcome last night, which will allow them increases in line with inflation, and would only say they will be reviewing their pricing policies.
But industry sources expect a 5% increase to be implemented soon with the former national phone company’s stance likely to be followed by other service providers such as Esat.
The increase applies to installation, line rental and phone call charges for landlines, including ISDN services.
Ms Doyle, who decides these matters alongside two other commissioners, last night said the outcome followed a wide range of consultations with phone companies and service users.
She said regulations in recent years had driven down phone charges to consumers and she wanted to protect these gains but also take account of new difficulties faced by phone companies.
Ms Doyle added that the rate of increase was far less than that granted for electricity and public transport prices.
The changes follow intense lobbying from phone companies and Eircom has argued there were grounds for abandoning the price cap and allowing competition in the market to fix rates.
