ComReg and Eircom agree 45pc drop in exchange costs

3 Sep 2004

It emerged this afternoon that the Commission for Communications Regulation (ComReg) and Eircom have agreed 45pc reduction in charges for other telcos who use Eircom exchanges.

Until now, when a telecom company requires space in Eircom’s exchanges, it must request Eircom to identify where there is space available and if such space exists Eircom would make an offer to the company for that space.

However, following a series of discussions initiated by ComReg, Eircom has informed ComReg that charges for surveys and offers in relation to space in telephone exchanges will be reduced by an average of 45pc.

For example, a charge of €12,000 will fall to less than €6,250 per exchange as a result of the new reduction.

ComReg said it welcomed the introduction in prices as it will help to stimulate further take-up of local loop unbundling by operators.

This in turn will enable operators to offer more competitive services such as broadband internet access, leased lines and voice services.

Commenting on the 45pc price reduction, ComReg’s chairman John Doherty said: “Local loop unbundling can play an important role in developing competition here and across Europe.

“These latest reductions, coupled with the recently proposed lower local loop unbundling line rental costs, will all contribute to stimulating more competition here to the benefit of consumers.

“ComReg is also currently reviewing a number of other aspects of the local loop unbundling product,” Doherty said.

By John Kennedy