Regulator clears way for flat rate internet

Internet service providers and telecoms firms should be able to provide flat rate internet services within a few months following…

Internet service providers and telecoms firms should be able to provide flat rate internet services within a few months following a decision that will be published later today by the Commission for Communications Regulation.

The Commission has decided to force Eircom to provide a wholesale flat rate internet product to its rivals - including Esat BT - in a move that should enable its competitors to begin offering consumers a retail product shortly.

The decision by the Commission follows public lobbying campaign by pressure groups such as IrelandOffline and the recent intervention by the Minister for Communications, Mr Dermot Ahern.

Last month Mr Ahern published a draft policy directive to the Commission which focused on directing the introduction of a flat-rate internet access product.

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The Commission will have to report its progress on enforcing flat rate access one month after the draft policy direction is finalised.

Flat rate internet access products enable consumers to pay a monthly fee for unlimited internet access at any time of day or night using a standard dial-up internet modem connected to a PC.

Many technology experts believe flat rate services encourage people to use the internet more as it removes the fear of higher phone bills.

Consumers in at least eight states in the Europe Union already have access to flat rate services but opposition to the product from Eircom has severely delayed the introduction of the product.

Eircom has consistently opposed introducing a flat rate internet service of its own over the past few years because it believes this would prove uneconomic.

It has also failed to negotiate deals with any of its rivals preventing them from offering a service.

Eircom's dominant position within the market - the company's telecoms network enters almost every home and business in the State - means rivals need to gain wholesale access to its network to offer consumers a flat rate product.

In June, 2002, Esat BT, and one other telecoms firm, requested a wholesale flat rate service from Eircom.

But commercial negotiations finally broke down between the two parties in late November.

But today's decision notice will outline a timetable for the phased introduction of a flat rate internet product and finalise the last details of the product description.

The Commission is expected to argue that the provision of flat rate internet access will promote competition, contribute to the development of the Irish telecoms market and promote the interest of users within the community.

It will also reiterate that the provision of a wholesale flat rate product to rivals is mandatory for incumbent operators under EU legislation.

Some industry sources have suggested that the new Commission may not have the legal powers to force Eircom to introduce a wholesale flat rate product that can be used by rivals.

But in a recent paper the Commission wrote: "The provision of the wholesale product FRIACO (flat rate internat access), is under EU legislation mandatory whether an incumbent offers such a retail service or where there is reasonable request from another licensed operator for such as wholesale product."