Oireachtas Joint and Select Committees

Tuesday, 23 May 2017

Joint Oireachtas Committee on Communications, Climate Action and Environment

Commission for Communications Regulation Performance Review: Discussion

5:00 pm

Mr. Kevin O'Brien:

I will set out the key projects that ComReg is working on and that we see ourselves delivering on over the next two-year period. The first is promoting competition. Where operators have significant power in the market, and this usually means Eir or Eircom Limited about which we are talking, we introduce regulation. In the case of Eircom's network for broadband, through regulation we allow companies like Sky and Vodafone to use the Eir network so that they can sell services on to Irish consumers. That is a constantly changing piece of regulation and we have some big pieces of work in the job jar on that over the next 24 months. They will be dealing with issues like how other operators get access to things like poles and ducts on the Eir network and also at how Eir has led price, in particular with regard to the bundles market.

My second point concerns Eir's regulatory governance model. Over the years ComReg has had concerns about Eir's approach to meeting its regulatory obligations. Recently we commissioned consultants to do a deep dive examination of Eir in this regard. Those consultants are just finishing their work and on the basis of their recommendations we will be proceeding to look at new ways of approaching Eir to demand certain standards from it around governance and adherence to regulation. That can include issues such as aspects or rules around separation of elements of the company.

I will now address the issue of empowering consumers. We have commissioned research into this area on an ongoing basis but we are trying to deepen our levels of research and understanding of consumer behaviour and consumers' ability to grapple with complex information better. We will produce a new comparison tool. ComReg had the first comparison tool on its website ten or more years ago called callcosts. We are updating that tool and we will relaunch it in 2017. It will be much more advanced and useful for consumers. Through our new website we are trying to find better ways for consumers to engage with us and ask us questions, and we are also starting to implement the neutrality rules, which are new European rules from last year. These concern keeping the Internet free and open.

ComReg has a number of initiatives in the area of mobile user experience. These are being carried out in the context of the Department's broadband and mobile coverage task force. We plan to gather information so that we can put in place something like a coverage checker map. We have not yet decided on the actual output of that yet but it will be something that consumers can use to understand coverage in their area. We are starting to work on examining handset performance because there is a big issue about the variability of handsets when it comes to mobile coverage and we will try to make data publicly available on that. We also want to examine the impact of better insulation in housing because that also has an impact on indoor coverage.

Moving on to how operators deal with complaints, we are currently consulting on proposals to basically tighten up the obligations on operators when they are contacted by consumers and we will propose new regulation in that regard.

My next point concerns investment. One of the spectrum bands that will become available in the next three years is the 700 band. Some members may remember analogue switch-off and the freeing up of the 800 band, which was subsequently auctioned and is now used for 4G services. It has now been decided at a European level that the 700 band will be used and made available for electronic communication services. Currently, RTE in conjunction with the Department is planning to continue providing the same television services but more efficiently and freeing up the 700 band. What is interesting about this band is that it has very good coverage characteristics so the ability to reach more on a geographic basis is a big possibility here.

Another point mentioned by Mr. Godfrey is our role in supporting the Department. The Department is the decision maker in all aspects of the national broadband plan project, however under state aid guidelines we have an advisory role.

I will now mention universal service. Eir is obliged to make sure that everybody in Ireland has a fixed telephony service that is fit for purpose. We have put in place obligations on that and we intend to ensure those obligations are met by Eir. In due course, we will also examine the question as to whether universal service should also include broadband.

My final point concerns the organisation. First, I will talk about compliance. We have learned in ComReg over that years that for regulation to be effective there must be real and serious compliance action. We have become more active in that regard. We want there to be proper deterrents to ensure operators meet their obligations. I mention to the committee that we have been engaging with Departments and with the Law Reform Commission on the need for regulators to have appropriate powers and in 2017 the Law Reform Commission intends to publish its findings on this. That is something the committee might want to look at when it comes out. We need the organisation to be able to deliver on the strategic intent and projects we have mentioned so far. Therefore, to have the right capacity and the right skills means that, in some cases, we need additional staff and skills in the organisation. That is to ensure we deliver on our remit. I will pass back to Mr. Fahy.