The Telecommunications Regulator, Ms Etain Doyle, is to continue to exercise price cap control on at least four of the retail services provided by Telecom Eireann.
The four services are: the connection and provision of exchange lines; local calls; and payphone services. These are the services least open to competition, according to the regulator.
Further analysis is to be carried out on the market for another six services included in the price cap "basket" of 10 services, in order to determine the appropriate scope of any further price control. These services are: the provision of Integrated Services Digital Network lines; trunk dialled calls; weekend trunk dialled calls; international dialled calls; operator calls; and directory inquiry calls.
The price cap mechanism was introduced on January 1st, 1997, and controls the price Telecom Eireann can charge on the 10 services. The basket of services may not increase in price by more than the annual percentage change in the consumer price index, minus six, though the price of individual services can be increased up to specified levels.
In a report published yesterday, Ms Doyle found competition more developed in services for larger businesses and more advanced generally for commercial rather than residential customers, particularly low-usage customers. The new price regime is likely to be altered to reflect changes in the telecommunications market and in consumer requirements.
The regulator's office found that in the year January 1st 1998 to December 31st 1998, Telecom Eireann had aggregate reductions of 9.2 per cent in the tariffs for the basket of 10 services.
