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Dáil Éireann debate -
Thursday, 2 Apr 1992

Vol. 418 No. 2

Written Answers. - Telecom Charges.

Gerry O'Sullivan

Question:

17 Mr. G. O'Sullivan asked the Minister for Tourism, Transport and Communications if, in view of the recent European report which revealed Telecom charges are among the highest in the EC, she will outline the proposals she has to reduce Telecom charges to bring them into line with our EC partners; and if she will make a statement on the matter.

I assume that the Deputy is referring to the recent report of a survey of telephone charges carried out by the Brussels-based consumers' organisation BEUC. This survey found that for some services Telecom Éireann's charges are at the highest end of the countries surveyed.

At the outset I should mention that Telecom Éireann have a high cost structure principally because of the high level of debt, over £1 billion, which the company must service and because the demographic structure of the area they serve involves a high average cost per line compared to other EC member states. While bringing costs into line with our EC partners is desirable it is not, for these reasons, something which can be accomplished in the short term. For example, I accept that international calls from Ireland are too high and that they will have to be reduced. However, any reduction in international charges will have to impact in other areas and the most likely areas to be affected will be the charges for local calls which, I am informed by Telecom Éireann, are priced below cost in some cases at present.
The initiative for proposing reductions in telecommunications charges lies with Telecom Éireann and I understand that the company are at present considering the options open to them to enable international calls to be reduced.
I need hardly remind the Deputy that my predecessor agreed a package affecting local and trunk calls which took effect on 15 January last and which reduced the national telephone bill by an estimated £50 million.
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