Eircom's costs criticised

Eircom's proposed costs for telecoms operators to access the last mile of the local telephone network are "off the wall" and a clear "monopoly play", according to the chief executive of Esat Telecom. In an interview with The Irish Times, Mr Neil Parkinson accused the incumbent operator of deliberately attempting to delay the deployment of advanced technologies such as digital subscriber line. This technology would enable telecoms companies to deliver high speed Internet access via the local loop or last mile of telephone wires which enter homes and businesses.

Mr Parkinson steps down as chief executive of Esat Telecom next month and has accepted a new role as non-executive chairman with the Esat Group.

Eircom has offered to open its network to competition at a monthly charge of #32.15 and a once-off connection fee of #484 per line. This is significantly above other European countries.

British Telecom has proposed a monthly charge of just #16.50 and a connection fee of #159 while the incumbent in Austria is charging #12.35 per month and a connection fee of #54.5.

"The [telecoms] regulator needs to take the lead," said Mr Parkinson. "We have to knock back the price as operators like Esat will not be able to go in at those prices."

The regulator, Ms Etain Doyle, is currently assessing Eircom's proposals on so called local loop unbundling and has already said that some costs seem high. She has refused to approve the company's proposals so far.

According to Mr Parkinson a failure by Eircom to open up its local telephone lines to competition would hurt the Republic's attractiveness for foreign investment and hinder small indigenous firms expansion plans.

"As more businesses become overstretched with staff shortages Ireland has to ensure that it is as technical advanced as possible," he said. "We have to have all the pieces of the puzzle to being in investment and promote growth among SMEs."

Mr Parkinson said Esat and other operators would probably not be in a position to offer digital subscriber line technology before the end of 2001.

"Because we haven't got the terms of access or equipment in the exchanges it could be 12 months before we see digital subscriber line technology in Ireland."