The price of high speed access to the Internet is set to fall significantly, following a decision by Eircom to cut its broadband prices in half. But competitors have called the move predatory and anti-competitive.
Eircom currently charges €89 a month for customers to access a broadband service which allows users to access the Internet over 18 times faster than through an ordinary phone line. The charge for this service will be halved to around €45 a month, excluding VAT, and Eircom hopes to offer it from March.
Competitors such as Esat BT say the move is predatory and anti-competitive as it has not been offered a wholesale rate first, as it must under the terms of Eircom's licence. But Eircom says it has notified the regulator ComReg and is working on a new wholesale price.
Eircom also announced that broadband would be available to any town with over 2,000 telephone lines by September of next year. Ireland currently has one of the lowest rates of broadband usage in the OECD.
The regulator ComReg welcomed the announcement, adding that it would be working with the industry to ensure that an 'appropriately priced' wholesale product was put in place.
A spokeswoman for Esat BT said it already had a broadband service available at €48.50 per month. She said only 600 customers had signed on for the service, suggesting consumers did not want the service at this price.
She said the speedy introduction of flat rate internet access was of more importance, and today's announcement by Eircom was a cynical attempt to delay this.
