Dáil Éireann díospóireacht -
Tuesday, 24 Oct 2000

Vol. 524 No. 5

Written Answers. - Telecommunications Industry Deregulation.

Michael Creed

Ceist:

187 Mr. Creed asked the Minister for Public Enterprise her views on the concept of significant market power in the context of deregulation in the telecommunications industry and specifically unbundling of the copper local loop; and whether it unfairly discriminates against Eircom in so far as cable operators are not obliged to unbundle their network which is concentrated in the large urban areas and is significantly easier to service and access than Eircom networks and consequently more lucrative financially. [22918/00]

Minister for Public Enterprise (Mrs. O'Rourke):

The proposals contained in the draft EU Regulation on Unbundled Access to the Local Loop do not, in my view, discriminate unfairly against operators designated as having significant market power in the provision of fixed public telephone networks, such as Eircom.

The concept of significant market power was established as part of the existing EU regulatory framework for the telecommunications sector. It is designed to allow national regulators impose specific requirements on operators with significant market power in particular markets to ensure the development of those markets and the growth of competition in the sector.

In general, under this framework, an organisation is presumed to have significant market power when it has a share of more than 25% of a particular telecommunications market in the geographical area in a member state in which it is authorised to operate. The particular markets to which this may apply comprise the markets for interconnection, public mobile telephony, fixed public telephony networks and services, and leased lines.

The scope of the draft EU Regulation on Unbundled Access to the Local Loop is limited to dealing with unbundling of the local loop of those operators identified as having significant market power in the fixed public telephone network market. In Ireland's case this, as of now, means Eircom.

The proposals contained in the draft regulation do not cover networks of cable television companies. While steps are being taken by cable operators to upgrade their networks, they are not yet seen as having the same functionality and ubiguity as the copper local loop. However, this does not mean that they will not be obliged to offer access to their networks at some future stage should be conditions at the time justify such an obligation. Unbundling obligations may be imposed on operators of networks like cable if, in the future, they are shown to have significant market power in a relevant access market and where the conditions at the time justify such an obligation. This will be possible under the proposed EU Communications Regulatory Framework to come into place by 2003 which,inter alia, will replace the proposed regulation.