Eircom to take legal action on network charges

EIRCOM has issued High Court proceedings against the Office of the Director of Telecommunications (ODTR) in a dispute over the methods to be used in charging other operators for using its network.

The company is understood to be deeply unhappy with some of the conditions proposed by the Regulator, Ms Etain Doyle and her staff in the document, known as the Reference Interconnect Offer (RIO) decision notice. The row will delay any new interconnect rates. No date has yet been set for the court case.

The ODTR recently published the RIO, which is a framework covering the commercial terms and conditions which apply to interconnect arrangements between Eircom and the other operators and affects mainly voice telephony. It does not include mobile calls and does not specify a rate.

It is believed that issues in the document of major concern to Eircom include a proposal that the company give other operators access to its sites and ducts (co-location) but does not specify how the company will be compensated for doing this. There is also a proposal that Eircom give its competitors four weeks notice of any new services it intends to introduce.

Another issue of conflict is the costs incurred in billing other operators for using its network. Eircom is understood to believe that this is not reflected in the interconnect rates.

It is also understood that Eircom, formerly known as Telecom Eireann, made its submissions on the interconnect issue to the Regulator several months ago. Sources said nothing was heard back for months. Then, last week, the Regulator wrote to Eircom giving it 48 hours to give its views on the RIO decision.

It is believed that Eircom felt the 60-page document raised several issues, about which it was unhappy and wanted further time to study and to make submissions. However, it is understood that the document was published anyway.

Eircom is understood to angry about the way this was done. In a statement last night, it said the interconnect review had not been undertaken in a fair and reasonable manner. It said Eircom was also challenging the notice on a number of "substantive commercial, technical and legal grounds". An Eircom spokesman would only say that the company considered the ODTR's latest decision, "and the procedures around it", to be unacceptable. "Regrettably, we are left with no choice, but to begin legal proceedings," he said.

The Republic now has one of the lowest interconnect rates in Europe, according to industry analysts.