Eircom could be hit if govt cuts free telephone services, paper says

4 Dec 2012

Plans by the Irish government to cut free telephone services for older people under a budget revamp could seriously impact on troubled fixed line operator Eircom, The Irish Times reports. The Dublin administration is looking to trim the budget by introducing cuts in household benefits provided to pensioners – including elements such as electricity, gas and telephone allowances, and free TV licences. However, it has been suggested that such a move would have ramifications on Eircom’s financial situation given the former monopoly currently benefits from about 60% of the EUR100 million (USD130.1 million) paid out by the government to telecoms operators under the provisions. In response to the proposal a spokesman for the operator said: ‘A significant cut to the telephone allowance would leave Eircom with no alternative but to review the priorities in our business plan.’ The struggling firm is already looking to shed upwards of 2,000 of its workforce over the next 18 months in a bid to make annual savings of EUR100 million.

Ireland,eir (formerly Eircom),

Subscribe

Subscribe to CommsUpdate to get the day’s top telecom headlines delivered to your email.

Subscribe to CommsUpdate

Feedback

Have feedback, corrections, or story ideas? Send them to editors@commsupdate.com.

Browse Past Issues

Filter

Filter CommsUpdate by the following categories or use the search.

Search

Visit our help page information on performing advanced searches, including how to restrict the results by country or company.

Advertise

CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.

Share