Oireachtas Joint and Select Committees

Thursday, 14 March 2013

Joint Oireachtas Committee on Transport and Communications

Line Rental Charges: Discussion with Commission for Communications Regulation

10:40 am

Mr. Kevin O'Brien:

An external provider is setting up the scheme for us and that entity is responsible for putting together the sample, which needs to be an appropriate size with an adequate geographic spread. I can discuss this further with the Deputy after the meeting and would be happy to provide her with the specifics on the scheme. It is very important for us that the sample is correct, accurate and reflects the real experience. That is a new project for us. We have also had discussions with the Advertising Standards Authority of Ireland, ASAI, about the advertisement of broadband speeds. A number of years ago the authority set out guidelines for telecommunications operators and their broadband advertisements so that the operators would not exaggerate the speeds available in their advertisements. The operators have been directed to indicate speeds at busy times rather than in the middle of the night, for example. We have done a lot of work in that space.

In response to Deputy Fleming's contribution, I repeat what I said to Deputy Harrington, namely that there is no change in the retail price for a fixed line in Ireland. The universal service regime applies fully. We are fully aware of the need to try to drive telecommunications investment out as far as we can into more rural areas and we are very aware of the value of these services to rural communities. Everybody needs high-quality telecommunications services in this day and age. We do our best to regulate the market in a way that pushes service provision out but for that last leg or piece of the picture, the Department of Communications, Energy and Natural Resources engages in public interventions, as is the case across Europe. We try to minimise the piece that the Government needs to fill in.

In the context of universal service, we insist on high-quality standards from Eircom. We have put in place a performance improvement scheme with the company, whereby it is expected to achieve certain metrics, year on year. As an example of this, Eircom had obligations last year with regard to fault repair, whereby it had to repair 80% of all faults within two days.

While Eircom achieved most of the targets we had set, this was one it did not meet. We applied a penalty of €225,000 in respect of fault repair which it paid over to us at the end of last year. We have this performance improvement regime in place for universal service and where Eircom does not match up, we apply penalties to the company. It is a regime that is in place to try to improve the quality of universal service provided everywhere in the country.

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