ComReg to deregulate leased line business

4 Jun 2004

The Commission for Communications Regulation (ComReg) has deemed the markets for retail leased lines and high capacity leased lines to be well served with providers and has moved to lift restrictions and obligations on Eircom providing these lines.

The move follows the publication of two consultation papers and the results of market analysis of the leased line markets.

Leased lines are a core element of the comms market in Ireland in terms of providing businesses with dedicated voice and data services and can directly and indirectly support consumer needs too.

Retail leased lines are used by businesses for efficient voice and data communications between multiple sites while wholesale leased lines are used by network operators like fixed and mobile service providers to build out their networks to supply businesses and retail customers.

“Businesses now have a choice of many providers of international retail leased lines, and no single company is dominant,” ComReg said in a statement. “In a deregulatory move, ComReg is therefore proposing to lift restrictions on Eircom for the provision of these lines and allow market forces to operate.

“Similarly for high capacity retail leased lines within Ireland, ComReg proposes to find the market effectively competitive and to lift existing obligations on Eircom,” the regulator stated.

However, ComReg warned that effective market competition has not been reached in the market for national retail leased lines at lower bandwidth and wholesale leased lines. “Eircom enjoys a competitive advantage in this market. For this reason ComReg is proposing to designate Eircom as having significant market power and puts forward proposals for further regulation to be placed on Eircom,” the regulator said.

By John Kennedy