Written answers

Thursday, 15 November 2007

Department of Communications, Energy and Natural Resources

Telecommunications Services

5:00 pm

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Question 29: To ask the Minister for Communications, Energy and Natural Resources his views on a report (details supplied) that claimed that while western European broadband prices for residential users have decreased on average by 3.1%, the cost of average broadband went up by 35.5% here; and if he will make a statement on the matter. [28959/07]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The provision of telecommunications services, including broadband, is a matter for the private sector operating a fully liberalised market, regulated by the independent Commission for Communications Regulation (ComReg). I have no function in this matter. I understand ComReg has raised concerns with the authors of the report about the methodology adopted and the accuracy of the results published for Ireland.

Since liberalisation, Irish broadband prices have decreased significantly in comparison with the overall Consumer Price Index. For example, ADSL tariff packages cost in excess of €100 per month in 2002. By Quarter 2 of this year the average price in the market was €23, which is the 5th cheapest in the EU, the overall EU average price being €29. Broadband can also be had for as little as €9.99 when taken in a telecommunications bundle.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 30: To ask the Minister for Communications, Energy and Natural Resources his views on whether the telecoms market here is competitive; if so, the evidence there is for same; and if he will make a statement on the matter. [28979/07]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The telecoms market is fully liberalised and regulated by the Commission for Communications Regulation (ComReg), which is independent in the exercise of its functions. ComReg's objectives include the promotion of competition and the promotion of the interests of users. There are now over 600 authorised undertakings for telecoms services and this includes 100 companies offering fixed telephony services, five companies offering mobile services and over 200 companies offering high-speed broadband over a number of platforms.

Since liberalisation, Irish telecommunications prices have decreased significantly in comparison with the overall Consumer Price Index (CPI) according to information from the CSO. Ireland has the 10th lowest average broadband subscription fee according to recent figures published by the OECD.

Under the regulatory framework for telecommunications ComReg conducts market analysis to determine whether any part of the overall telecommunications market is not competitive. Where significant market power is determined, the regulator is obliged to impose remedies to ensure that the operator does not abuse a dominant position. ComReg has found significant market power in the fixed line market and has imposed remedies on the dominant operator in order to facilitate competition in the market.

ComReg's powers have been substantially strengthened by the enactment of the Communications Regulation (Amendment) Act, 2007 earlier this year. This Act enhanced ComReg's enforcement powers and also conferred on them competition law powers, similar to those of the Competition Authority, which allow it to investigate and prosecute any instances of anti-competitive behaviour or abuse of dominance in the electronic communications sector.

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