Ciarán Lynch (Cork South Central, Labour)
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Question 120: To ask the Minister for Communications, Energy and Natural Resources his views on calls for a functional separation of Eircom's business rather that a full structural split of its networks and its retail arms; and if he will make a statement on the matter. [43637/08]

Eamon Ryan (Dublin South, Green Party)
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The corporate structure of eircom, which is a private company, is a matter for that company subject to appropriate engagement taking place with the Commission for Communications Regulation (ComReg) on any regulatory issues that might arise. ComReg is independent in the exercise of its functions.

More generally, the EU Commission's proposals for reform of the legislative framework for the sector include adding functional separation to the remedy tool box of national regulators. I have supported this proposal from the start as effective remedies are key to realising the benefits of a competitive market key.

There is some debate around whether customers would be best served by functional opening of the network or by a structural split between the retail and network divisions of the business. The key issue is the implementation of the operational model that provides the optimum competitive environment and promotes investment and innovation in the development of telecoms networks which facilitate the widespread introduction of new digital devices and applications.