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"Sure, in five years or so a tribunal would be set up to investigate the Irish Internet catastrophe", we wrote at the start of eircomtribunal.com in September.
ODTR uncovers Eircoms illegal practices
On the 17/10/2002 the ODTR published its "off book" pricing investigation in respect of eircoms provision of voice services (downloadable at: www.odtr.ie/docs/odtr0287.doc); a small document packed with dynamite:
"On the basis of that investigation and the information it has received the ODTR has found eircom to be non-compliant with its legal obligations under the Voice Telephony Regulations
The investigation and the subsequent evidence provided indicate that non-compliance was more extensive than initially considered. In addition, the ODTR has confirmed a number of additional apparent anomalies with general pricing.
The ODTR considers the issues this raises to be very serious ones
Given the potential detrimental effect a lack of transparency and or discrimination in respect of prices and or discounts may have on an OLOs [Other Licensed Operators] ability to compete on fair and equal terms in the sector, in addition to the potential negative effect any weakening of competition may ultimately have on the end user
"
Eircom faces massive legal challenge
On Saturday 26/10/2002 the other Telecom operators the ones that have survived Eircoms illegal practices announced possible legal action against Eircom. If a successful legal action is taken, industry observers say that the amount of compensation awarded to the other players in the market could top 170 million euros.
ODTR is asked to examine 100 million euro Eircom deal with the State The telcos are also questioning the validity of a 100 million euro deal Eircom had done with the State to provide a range of telecommunications services to government departments. Esat/BT has asked the ODTR to investigate the deal to ascertain if it was won on the back of the same kind of "off the book" pricing.
Was there any snuggling up going on between Mary and Tony of the sort Tomy Ungerer is depicting?
Eircoms ongoing denial of Internet service attack needs to be examined
There are clear indications that Eircom have misused their dominant market position to withhold Internet access, especially broadband, from the Irish public.
The 170 million euros of damage that other telcos might sue for is nothing compared with what Eircom owe internet users for monopolising the loop, inhibiting competition, delaying the introduction of DSL, using extortionate pricing to put customers off adopting DSL, and general time wasting online for Irish Internet users on a daily basis.
Eircom's DSL testing in conjunction with RTE is a scam
DSL is an old and trusted technique and Eircoms 3-year long so called ADSL-trial with RTE is an unacceptable excuse for withholding this vital broadband Internet access path from the Irish public. Why did RTE commit itself to this scam? The business connections between Eircom and RTE need to be scrutinised by the ODTR.
Eircoms wholesale pricing for DSL is probably artificially inflated
Eircom has pushed through a wholesale pricing model for DSL that is markedly higher than the retail products everywhere else, making it virtually impossible for competitors to offer ADSL on that basis.
While ADSL is now offered around the world at a customer end price of between 30 to 40 euros per month, Eircom asks a wholesale price of 58 euros (that is still without VAT!) plus fantastic ancillary costs. While all over the world the broadband rollout is taking place mostly via wholesale, not a single reseller has taken up this offer in Ireland. Eircoms wholesale price is such an anomaly that it needs to be investigated independently how it was reached at.
Eircom's dial up Internet pricing is probably incompatible with competition legislation
Eircom is offering flatrate Internet access with a speed of 512kbit/s to a few customers in areas where it faces competition for 107 euros per month. Where it does not face competition, that is with 95 percent of its customers, it offers Internet intentionally exclusively in a packet that is strictly geared to the occasional email user, it has only a speed of 30 to 40 kbit/s and a pricing of 41 euros per single day. There is no other area of commercial life thinkable where the competition authorities could allow such a misuse of a companys dominant market power.
Eircom's pricing is in breach of its legal requirements
"An organization providing voice telephony services which has been designated under Regulation 4 shall ensure that tariffs for use of its fixed public telephone networks and fixed public telephone services follow the basic principles of transparency and cost orientation
."
Putting aside Eircom's "off-book" pricing for a moment, even Eircom's published pricing schemes with an array of discount options make price comparisons virtually impossible, contravening the principle of transparency. We would not accept a grocers shop with not a single straight price on the goods; so why should we accept this situation with telecommunications?
Eircom's Internet access pricing, especially the dial-up modem and ISDN services, are not based on cost orientation. The deliberate non-introduction of access modes for anything other than the occasional user is not compatible with the principle of cost orientated pricing. We would not accept a public transport system that was exclusively offering taxi transport, so why should we accept it with
Internet traffic?
The day will come when Eircom's current shareholders will wish they could swap their holding in Eircom with asbestos claim burdened ABB, if the company continues to charge two/three times the European average for retail DSL Internet access and generally continues to be the stumbling block for progress of Irelands Information Society. The patience of the public, the business community and the State has finally run dry. The game is up. Change radically or get lost!
All that brings up the question: How can we ordinary punters help?
Well, while Eircom is mainly owned by non-Irish speculative capital, around 30 percent of the company belongs to Eircoms staff. So it might be a good idea to bring the concerns we have with Eircom to their attention.
If you want to help, visit our "Action Two: No more favours" page, all you need is a printer and a day not lashing with rain.
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