Alex White (Dublin South, Labour) | Oireachtas source

I thank Deputy Byrne. I am glad to have this opportunity to report to the House on the measures in place to regulate the provision of telecommunications services and the options available to users to minimise costs. Since the telecommunications market was fully liberalised in 1999, in accordance with an EU timetable, the increased convergence in telecommunications technologies has allowed mobile telephone and cable service providers to compete with the traditional fixed line service providers. Telecommunications services are now provided by commercial operators working to market economy principles. Some State intervention is necessary and permissible to ensure universal access to basic telecommunications services across the country.

The Commission for Communications Regulation is authorised to impose a universal service obligation to ensure all citizens can access basic telecommunications services at regulated retail prices that are based on the average costs for the provision of such services at any fixed location in the State. The commission recently reappointed Eircom as the universal service obligation provider of basic telecommunications services across the State. Eircom is required to set connection and line rental charges at geographical averaged prices to ensure within reason that citizens in the most rural areas pay no more for basic fixed line telecommunications access than those in the most profitable urban areas. Any proposal by Eircom to increase these prices is regulated by the commission. This approach is within the limit of the discretion allowed within the EU to regulate retail prices in a market liberalised by EU directives without distorting competition.

I was interested to hear what the Deputy had to say about Eircom's TalkTime product, which is aimed at customers who were in receipt of the Department of Social Protection's telephone allowance at 31 December 2013. The TalkTime product is charged at €19.50 per month, inclusive of VAT. This includes line rental and a call allowance of up to €5. The comparable regulated retail line rental charge is €25.78. This service was introduced by Eircom. It is a matter for other competing service providers to decide whether to match this offer. I have mentioned the increasing convergence between mobile, cable and fixed line services. It is important to advise all users to look at the alternatives to the traditional telephone to secure best value. Some mobile service providers are marketing monthly rates, including calls, below the current and reduced line rental charges. These mobile options may provide a better opportunity to users who incur the line rental charge and lower call charges.

The universal service obligation is the only means available to public bodies to regulate retail prices in the liberalised telecommunications market in compliance with EU competition rules. I say that in direct response to the Deputy's question about the opportunity for intervention on the part of the Minister or any other public entity. The opportunity for intervention is quite limited. It is limited to the universal service obligation, which is the only means available to regulate prices within the market we have. The option to impose regulated retail prices on telecommunications services providers ceased when market liberalisation took place. The limited right to regulate retail prices under a universal service obligation is implemented by the Commission for Communications Regulation. The best advice to users is to examine all the market options so they can identify a service which best meets their needs.

See this speech in context