Breeda Moynihan-Cronin
Ceist:52 Mrs. Moynihan-Cronin asked the Minister for Public Enterprise when she will order a further reduction in Telecom charges; and if she will make a statement on the matter. [14944/97]
Written Answers. - Telecom Charges.
Telecom Éireann is obliged to effect overall reductions of at least CPI-6 per cent annually up to 2002 in the basket of tariffs covered by the Telecommunications Tariff Regulation Order which was made on 16 December 1996 in accordance with Section 7 of the Telecommunications (Miscellaneous Provisions) Act, 1996.
The minimum obligatory reductions set out in the price cap order will result in substantial real price decreases for Telecom Éireann customers and growing competition in the telecommunications market may result in even greater price reductions.
In April of this year, Telecom Éireann announced an £80 million price reduction package to be phased in over 12 months.
The 1996 Act provides that on or after a period of two years from the making of the price cap order, I may direct the Director of Telecommunications Regulation to review the Order and, in such circumstances, the Director may modify the terms of the Order.
Therefore, the question of whether further obligatory reductions in telecom charges are warranted will be a matter for the Director either on her own initiative after the current Order has been in operation for five years or after two years on foot of a direction from me to review the terms of that Order.