Eircom acquiesces to ComReg call for cut in broadband access charges

26 Jan 2010

Eircom has finally agreed to ComReg’s call to slash the price it charges competitors to access broadband services over its PSTN from EUR8.41 (USD11.90) to EUR0.77. The settlement was reached yesterday, ending a dispute that has rumbled on since mid-2009.

In September last year CommsUpdate reported that Eircom was to file an appeal with the High Court against the telecoms regulator’s decision ordering it to slash the cost of an unbundled broadband connection. While the actual grounds for the appeal were unclear at the time, they were thought to centre on the extent of the cut being applied by the regulator. The decision to appeal came hard on the heels of Eircom’s Australian majority shareholder Eircom Holdings’ announcement that it had reached a deal with Singapore Technologies Telemedia (STT) concerning a takeover of the company. The timing of ComReg’s announcement of its decision to order a price reduction angered Eircom at a sensitive time in its takeover talks with STT. Local watchers say yesterday’s volte face signals a shift in attitude by Eircom’s new majority shareholders.

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