Dáil Éireann díospóireacht -
Tuesday, 6 Feb 1996

Vol. 461 No. 1

Written Answers - Telephone Charges.

Ivor Callely

Ceist:

259 Mr. Callely asked the Minister for Transport, Energy and Communications if his attention has been drawn to the restructuring of leased circuit pricing; the percentage increase from 1995 prices to 1997; and if he will make a statement on the matter. [2316/96]

Minister for Transport, Energy and Communications (Mr. Lowry)

Some time ago Telecom Éireann submitted proposals to me for a comprehensive re-balancing of leased lines charges. These charges had not been adjusted in many years and a serious shortfall had developed, especially in the provision of national leased lines, between the costs of providing the service and the revenue earned from it.

Following lengthy discussions between officials of my Department and the company I agreed a range of increases in leased line charges to be implemented by the company in two phases; the first in 1996 and the second in 1997. These affected the tariffs for national leased lines, leased lines to the UK and analogue lines to Europe. Having regard to all the circumstances I am satisfied that these increases are appropriate at this stage.

With regard to national leased lines it is not possible to provide the information in the precise form requested by the Deputy because the actual charge for any one leased line is the sum of the various cost elements involved i.e. connection fee, rental charge, fixed network charge and distance related charges. These cost elements vary with the type of leased line used (i.e. analogue or digital), with the capacity of the line in question and with the distance involved. It is the charges for these elements which are being varied (increases in some cases and decreases in others) and the impact on the cost of any one leased line would depend on the particulars of that line. The charges for some leased lines will actually decrease.

Accordingly, I can tell the Deputy that as a result of these adjustments it is possible that the final charges faced by some customers will increase substantially. In the case of national leased lines this is necessary in order to bring charges into line with costs, something that had not been done for years. I have instructed Telecom Éireann that where such increases are likely, customers are to be assisted in finding the least cost reconfiguration of the service they require. In many cases this would entail moving away from leased circuits altogether to a more appropriate service e.g. an ISDN (Integrated Services Digital Network) or other date service.

In the case of circuits to the UK, charges are being standardised so as to equate them with the equivalent tariffs of British Telecom and Mercury.

With the exception of increases in analogue circuits to Europe, all other international leased line tariffs are set to decrease.