Mobile service providers warn of potentially massive service disruption

Eir has told ComReg there is a 'massive risk of a serious degradation in customer experience to the entire Eir customer base'.

Mobile service providers have warned of the risk of massive disruption to services from October, as the telecoms regulator has suggested urgent interim measures to protect customers.

Eir has told ComReg there is a “massive risk of a serious degradation in customer experience to the entire Eir customer base” while Vodafone has said customers in towns and cities would notice a “severe degradation in call connection, call set-up time, dropped call rate and data connectivity”.

Three Ireland, meanwhile, told the regulator that customers using 4G could be severely impacted and customers would be worst affected from disruption in rural and suburban areas.

The issue has arisen over a court case taken by Three over ComReg’s move to hold a new auction system for the awarding of spectrum bands for mobile and wireless broadband services.

In Ireland, telecoms providers can bid for the right to transmit signals across a number of different spectrum bands. During Covid-19, temporary licences were regularly renewed but a number are due to expire in October. ComReg had wanted new long-term licences to be in place by then.

These spectrum bands in this proposed auction were 700 MHz, 2.1 GHz, 2.3 GHz and 2.6 GHz. ComReg said these bands were essential for providing high levels of coverage, and of providing 4G and 5G services. 

Three had claimed the auction process would put it at a competitive disadvantage. ComReg, however, opposed Three's stay application and said the award process should proceed to ensure the 5G rollout goes ahead and meets EU targets to make spectrum available throughout the State which will improve performance and coverage, particularly in rural areas.

Last month, Mr Justice Denis McDonald granted a stay to Three against the planned auction which had been due to begin on July 25 and was scheduled to run until October.

Since it cannot hold the auction and grant licences, ComReg said this could have a significant impact on services and described it as “far from ideal”.

It said research it commissioned had put the overall cost to the economy of a delay in the award of these long-term licences in the order of magnitude of €1bn a year.

“Therefore, even a three-month delay could cost the Irish economy in the region of €250m,” it said.

ComReg is now proposing granting licences for these spectrum bands on a short-term basis in the interim.

“Given the potential for consumer disruption and the limited time now available before expiry of rights of use in the 700 MHz and 2.1 GHz bands in October 2022, ComReg is employing an accelerated consultation process,” it said.

It said it intends to publish its final decision on how to limit the impact on customers following receipt of submissions but “cannot provide further clarity on the overall timelines at this juncture”.