Eircom lessons warn against privatisation

Yesterday’s decision by the High Court to grant Eircom an interim examinership marks another sorry milestone in the long — but illustrative — decline of the company, one that provides services vital to our society and economic recovery.

It also sounds loud warning bells about what can happen — or what does not happen — when a privatisation goes wrong.

The telecommunications market is far more competitive and diverse than it was when the company was privatised in 1999. It is evolving more quickly and can no longer be defined by national boundaries. It is truly international, and international criteria and standards apply in all markets. In this context, the Eircom privatisation has been disastrous for Ireland and for the majority of those who invested in the company.