The EU regulation to open Eircom's local telecoms network to competition is "discriminatory" and could damage the firm's business prospects and shareholder value, an Oireachtas committee heard yesterday.
Mr Pat Galvin, Eircom's director of regulatory affairs, told the Joint Committee on European Affairs the regulation was discriminatory because it applied to only one type of technology - local copper access networks owned by Eircom.
He said it had the potential to unfairly damage Eircom's business prospects and its shareholder value as other providers of telecoms services such as cable operators were not bound by the regulation.
"While Eircom's competitors may get access to Eircom's local network anywhere in the country to offer multimedia services, Eircom has no similar right of access to the networks of its competitors," he added.
The draft EU regulation was published in July and is due to be submitted shortly to the Council of Ministers for adoption.
If agreed, it would mandate access to the local networks of dominant telecoms operators in EU states on January 1st 2001.
Mr Galvin said this one-size-fits-all approach by the EU ignored the reality of the Republic's fundamental difference from most other EU countries.
He said Eircom made a £200 million loss in supplying networks to rural areas outside Dublin and competitors were unlikely to pay for the real cost of connecting them to these areas.
In a presentation to the committee, telecoms regulator Ms Etain Doyle said eight companies were seeking access to Eircom's local network.
Meanwhile, Cellular 3, the company which established the Imagine mobile phone service, has introduced a convergent telecoms product which it claims will cut costs and help customers manage their communications flow.
The Mobile Office service enables users to cover their communications requirements, including fixed-line, mobile, fax, and e-mail, with a single telephone number.
The service is targeted at business customers and combines mobile and fixed-line technology.
It eliminates costs associated with playback and message minder which are used by existing mobile networks.
