Magnet resists Eircom price 'spin'

EIRCOM HAS been accused of misleading customers with its recent price increases and using “spin” to cover the real costs.

“The 3.1 per cent average increase figure used by Eircom is an outrageous piece of spin and is being used to hide much more severe price hikes,” said Mark Kellett, chief executive of Magnet Networks, the broadband and telecoms supplier. “Dig a little deeper and the real costs are laid bare.”

Eircom said the price increases announced last week would increase bills, on average, by 3.1 per cent, but it said customers who were on bundles would be unaffected. Mr Kellett pointed out that about 330,000 Eircom customers did not subscribe to a bundle.

As well as criticising the tariff increases, Mr Kellett said changes to peak times would hit customers.

“Eircom also fails to mention in its media announcement that bank holidays are now charged at peak time rates for new and non-bundle customers,” he added.

“This subtle change will be introduced six days before St Patrick’s Day – a time when people are more likely to call friends and family.”

Eircom’s price increases were “unacceptable” in the current business climate, said Ronan Lupton, chairman of Alto, the body which represents alternative telecoms suppliers.

He said customers who did not subscribe to a bundle now faced paying 36 cents for a call to a mobile phone. Mr Lupton also highlighted Eircom’s practice of rounding up call lengths to the nearest minute, which he said would raise an additional €2 million a year in revenue for the heavily indebted telecoms company.

“This is clearly a push to drive up revenue by Eircom,” said Mr Lupton.

Mr Kellett said that since it was established in 2004, Magnet had not increased its prices and “will not be raising them for the foreseeable future”.

Eircom declined to respond to the criticisms yesterday.