The European Commission has criticised regulatory and operational issues in the Republic which it says make it difficult for alternative telecoms operators to access Eircom's network. But the Commission's annual report on the European market, published yesterday, also praises elements of the Irish market and shows it has dropped a legal action taken against the Republic over "local loop unbundling".
Unbundling is the process by which competing telecoms operators gain access to an incumbent's local access network. Despite being prioritised by the Commission in early 2000, in many states incumbent telecoms operators have obstructed access to their phone networks.
The Eighth Report from the Commission shows the Republic has among the lowest level of "unbundling" of all member-states. It cites the Republic, along with Portugal and Germany, for competitors experiencing practical difficulties in locating equipment at incumbent local exchanges.
Competitors in the Republic need to locate DSL equipment at Eircom exchanges to be able to offer high-speed internet services. In addition to the practical difficulties associated with being allocated rental space, competitors also face problems with the cost of such space, says the report.
Variations in unbundling fees also seem to suggest inappropriate pricing methods, and cannot be explained merely in differences in population or the actual cost of network, it says. But the report shows the Commission dropped a legal action against the Republic this year for failing to open part of Eircom's local network to competition. Similar cases have been dropped against Portugal, France, Germany and the Netherlands.
The Commission said yesterday it wanted to take legal action against Germany for delaying other reforms to its telecoms industry, though it had not yet filed a formal suit. Mr Erkki Liikanen, European commissioner responsible for telecoms, said the Commission planned to issue a formal notice, the first stage of legal proceedings. The case will focus on enabling competitors to use a technology called carrier pre-select to offer a telephone service over an incumbent's network. Germany is one of the few member-states not to have this service yet.
Meanwhile, the report highlights that difficulties appear to exist in the Irish regulatory environment in that decisions are made without taking full account of all comments made during consultation proceedings. It also notes that requirements are in the pipeline to guarantee and improve enforcement of regulatory obligations.
The report singles out the Republic and Britain as examples of best practice in the implementation of cost accounting and accounting separation. These processes, conducted by the Commission for Communication Regulation, provide greater transparency of how prices are arrived at by operators, says the report.
Ms Etain Doyle, chair for the Commission for Communications Regulation, is equally frustrated at the time it takes to "unbundle".
