Eircom to contest pricing decision

EIRCOM IS expected to seek a judicial review over a decision by telecoms regulator ComReg that four of its products that bundle…

EIRCOM IS expected to seek a judicial review over a decision by telecoms regulator ComReg that four of its products that bundle mobile and fixed-line telephone services with broadband do not comply with telecoms regulations.

ComReg issued a decision this week that effectively found that four Eircom Talktime Family and Broadband bundles are being sold too cheaply. The bundles, which cost €45-60 a month, include unlimited calls from Eircom land lines to mobile phones on the Meteor network, which Eircom owns.

Industry sources said this effectively meant Eircom was using its dominance in the fixed-line market, where it has about 70 per cent market share, to encourage customers to switch to its mobile subsidiary. Significant numbers of Eircom customers were switching their mobile phones to Meteor from other networks to avail of the free calls.

It is understood mobile operator Vodafone formally complained to the regulator about the offers. A Vodafone spokeswoman said last night that the company did not comment on its private dealings with ComReg.

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Eircom released a statement which questioned the decision.

“Eircom believes that ComReg’s efforts to force Eircom to increase its rates for the bundles in question are misguided and wrong,” it said in the statement. “Eircom will fight for our right to compete and our customers’ rights to great services and will pursue all avenues to ensure that our customers can continue to take these bundles at competitive prices.”

If Eircom does not remedy the matter within 30 days, ComReg can seek an enforcement order in the High Court.

Ronan Lutpon of Alto, which represents other telecoms operators, called for ComReg to take “affirmative action” if Eircom did not comply.