Eir challenges ComReg decision on fixed-line obligations

Eir has challenged a decision by communications regulator ComReg which it says “significantly constrains its ability to freely conduct its business affairs” and to compete with other electronic communication services providers.

Eircom Ltd (Eir) is appealing ComReg's decision of July last designating Eir, for five years from July 2016 to July 2021, the "universal service obligation" (USO) for provision of "access at a fixed location" (AFL) for the entire State.

The decision means Eir must meet all reasonable requests for access to electronic communication services at fixed locations and must meet mandatory achievement targets concerning quality of service, fault repair time and connection time.

Eir says the decision means it is obliged in certain circumstances to provide connections to its public communications network supporting telephony and dial-up internet access.

Eir says it may be uneconomical to do so and also argues mobile phones are widely available and primarily used for making telephone calls.

‘Burdensome and expensive’

In order to meet the “burdensome and expensive” quality-of-service requirements, it must invest significant amounts in its legacy copper electronic communications network which is becoming obsolete, it also says.

The State is now rolling out high-speed, fibre-based broadband networks under the that national broadband plan, it adds.

In its Commercial Court challenge, Eir claims ComReg erred in law in its decision to reimpose the USO on Eir and has imposed obligations on it that are unreasonable, disproportionate and without any legal or factual justification.

ComReg also used a designation process that was “fundamentally flawed,” has “unlawfully interfered with Eir’s property rights”, and has failed to properly explain its decision, it is claimed.

The action was admitted to the fast track Commercial Court list this week by Mr Justice Brian McGovern.

As the principal provider of fixed-line electronic communications services in Ireland, Eir says it has been designated by ComReg as the universal service provider (USP) for successive periods since 2003 due to its legacy copper network.

It says last July ComReg reimposed the USO on it under the 2011 European communities regulations that govern electronic communications networks and services.

Eir says it fully recognises the social value and benefits the universal service has brought to Ireland but argues that has been at a significant cost to Eir. As the USP, it is entitled to funding but has not received any compensation, it says.

It has five requests for funding totalling €45 million before ComReg, it adds. Given the great changes in the communications sector and technology since 2003, ComReg has shown great tardiness in conducting a review of the continued requirement for a USO AFL in Ireland, it contends.