Eircom and Vodafone embroiled in home broadband price war

29 Sep 2009

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Incumbent operator Eircom and the new No 2 player in the Irish telecoms market Vodafone are embroiled in a price war over telephone and broadband bundles for home owners.

Vodafone has reduced the price of its 3Mbps Vodafone at Home fixed broadband and calls package in response to new landline and fixed broadband bundles by operator Eircom.

The company, which entered into a local loop unbundling (LLU) pact with BT, which makes it the new No 2 in the fixed market after Eircom with more than 170,000 fixed customers and a 15pc market share of the fixed broadband market. This agreement will see Vodafone take over BT’s 84,000 consumers and 3,000 small businesses.

Last night it emerged that Vodafone will drop the price point on its Vodafone at Home fixed-line package to maintain its guarantee to customers of at least 20pc savings on equivalent new Eircom bundles.

The monthly rental for Vodafone At Home up to 3Mbps Anytime headline price has been reduced from €49 to €45, to compete with the rival Eircom offer of €56.99 for up to 3Mbps bundles.

“We will live up to the commitment made to our customers to bring savings of at least 20pc on Eircom home phone and broadband packages,” Vodafone consumer director Carolan Lennon said.

“We are now a serious player in this market and an operator that is bringing true competition to the Irish market, clearly demonstrated by our quick reaction to market changes and decision to drop our prices,” Lennon added.

By John Kennedy

Photo: Vodafone has cut the price of its 3Mbps Vodafone at Home fixed broadband and calls package in response to new landline and fixed broadband bundles by operator Eircom.

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com