TELECOMS & MOBILE
Price cut to invigorate broadband market?
27-06-2008
by Deirdre McArdle
In a move that's likely to stimulate the Irish broadband market, ComReg has directed Eircom to slash its LLU line share pricing by 65 percent.
The communications regulator has told Eircom to reduce the current monthly wholesale price for LLU line share from EUR8.41 to EUR2.94. Eircom is legally obliged to offer alternative operators its LLU line share product. This product allows operators to access the higher bandwidth part of the fixed line so that they can offer broadband without having to provide a telephony service.
As part of a wider review of the LLU market in March, ComReg published a consultation document proposing the cutting of the LLU line share price; the announcement on Friday confirms that price cut.
ComReg chairperson John Doherty is confident that the announcement will invigorate the broadband market. "This price reduction will have a very positive effect on competition in the broadband market in terms of price, quality and the choice available to residential and business consumers of broadband services."
Liam O'Halloran, chairman of ALTO, welcomed the price cut. "This is good news for the Irish broadband market and for any company investing in providing broadband over their own network," O'Halloran told ENN. "This will make providing quality broadband services a much more viable option for alternative operators."
Other operators weighed in with their reactions to the announcement. Chris Clark, CEO of BT, said the move will bring Eircom's wholesale prices for this service in line with the rest of Europe. "This is good for competition and innovation and good for consumers," he said in a statement.
Eircom had not returned a call for comment by the time of publication.
It's been an eventful day for the Irish broadband market; earlier on Friday UPC announced the release of a 20Mbps broadband product for EUR40 per month.
And there's likely to be more excitement next week as Communications Minister Eamon Ryan reveals his next-generation broadband strategy on Thursday.
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