SINGAPORE-BASED STT has indicated to the Communications Regulator that it will invest in Eircom’s network infrastructure when it acquires the business and that it intends to stay in Ireland for the long term.
"From our discussions with them they are looking at Eircom like it's a telco and not an ATM," said John Doherty, chairman of ComReg told The Irish Times. "Eircom has a key role to play which it hasn't been playing anywhere near well enough."
Mr Doherty said officials from the regulator have had preliminary meetings with representatives of Singapore Technologies Telemedia (STT), a subsidiary of Singapore’s sovereign wealth fund.
He believes ComReg can have a “different type of engagement” with Eircom under its new owners.
Eircom has mounted a number of High Court challenges to ComReg decisions in recent years, particularly those relating to the prices it charges other operators.
Acknowledging that the company has debts of almost €4 billion, but urgently needs to invest in its network, Mr Doherty said Eircom had a challenge to come up with a new business model as revenues from fixed-line telephone calls continue to drop.
“STT is a new entrant in the markets it operates in, even in Singapore,” said Mr Doherty. As a result he believes it is more open to looking at new sources of revenue such as triple-play services combining voice, broadband and video services.
Under its previous ownership former chairman Pierre Danon unveiled a plan for so-called “next generation” access, which would have delivered faster broadband and enhanced services to Irish homes.
“The plan is there, it just needs to be implemented,” said Mr Doherty. He also pointed out that ComReg has published a number of documents in recent months putting in place the environment to encourage such an investment.
Mr Doherty welcomed investments in its network by cable TV operator UPC, which trades as Chorus and NTL.
“After many disappointments they now have 10 per cent of the broadband market,” he said. “Next year when they upgrade to the Docsis 3 standard they will be able to offer higher speeds and will be a real competitor to Eircom.”
While this year’s exit from the consumer market by BT Ireland, which sold its customer base to Vodafone, could be viewed as a failure of the market, Mr Doherty said it was in fact positive for consumers.
The move brings BT’s Irish operations more into line with its international operations where it is primarily a wholesale and corporate player.
He said Vodafone was a strong consumer player and its commitment to placing its own equipment in 55 Eircom telephone exchanges, rather than simply reselling the incumbent’s services, would benefit consumers.
Overall, Mr Doherty said the telecoms market was “getting to a point that we have the levels of competition you need”.
In January, Mr Doherty will take over as chairman of the Body for European Regulators for Electronic Communications (Berec).
It represents telecoms regulators in 27 European countries and was formed as part of the telecoms reform package that passed through the European Parliament this year. The European Commission had sought the creation of a “super regulator” with pan-European powers but this had been resisted by national bodies.
“The commission didn’t get all it wanted, the regulators didn’t get all they wanted, but the onus is on us all to make Berec work,” said Mr Doherty.
The priority for his year in office would be developing a pan-European approach to providing incentives for operators to invest in next-generation networks, he added.
