COMREG DEFENDS ROLE IN SMART-EIRCOM ROW - An agreement hammered out between the Communications Regulator and Eircom yesterday means that some 40,000 Smart Telecom customers will see their service restored to relatively normal levels from today. The move comes after a crisis on Monday whenSmart Telecom subscribers found themselves disconnected for outgoing calls. They now have two weeks to find an alternative provider while talks are underway today between the parties to ensure Smart's 17,000 broadband customers continue to receive a service.
Communications Regulator Isolde Goggin says that ComReg had been in discussions with both Eircom and Smart for some time and were aware of the situation, but she says that when a company is threatened with disconnection it may very well work its way out of those difficulties. She says that ComReg would not be in a very good situation if it went above the company's head and informed consumers before all opportunities for resolving the company's difficulties had been explored.
Ms Goggin says that talks between the parties had gone right up to the wire on Monday evening, but she pointed out that those affected were Smart's customers and it was Smart's responsibility to keep them connected. She says that when a situation like Monday's arises, it is ComReg's duty to keep its 'eye on the ball', with the ball in this case being the consumer. She says that to this end, since Monday ComReg has held very intense talks with both Smart and Eircom to try and get the situation resolved. She adds that she was pleased so far with the progress made yesterday.
The Communications Regulator says that her office will be providing information on new providers for Smart customers and adds that she is sure the providers will be 'stepping up to the plate' and getting into the media in an effort to make contact with those affected consumers.
She denies the events of the last few days is damaging for telecommunications competition here and says that a number of alternative land line providers are doing pretty well. She adds that having a competitive market does not mean that all competitors have to survive that environment and points to a market like the US where there have been some massive company failures from the likes of NTL and MCI, who have had to restructure in order to survive.
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EXCHEQUER FIGURES CONTINUED TO OUTPERFORM TARGETS - The Department of Finance said it recorded a deficit of €136m in the nine months to the end of September. This compares to a deficit of €1.123 billion the same time last year, and the budgeted deficit of almost €3 billion for the whole of 2006.
The Head of Research at Davy Stockbrokers, Robbie Kelleher, says that Finance Minister Brian Cowen has plenty of scope to give a generous Budget in December as the overshoot is this year's tax revenues will likely hit €2.5-3 billion. He says Mr Cowen will not spend that money in 2006, but it does lay a foundation for the maths in 2007, which is very favourable.
Mr Kelleher says that the Finance Minister has the capacity to reproduce the Budget he did last year, which essentially provided for double digit increases in current and capital spending, about a 10% increase in social welfare and a very generous income tax reduction package.
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MORNING BRIEFS - The value of the Dow Jones has been soaring in recent weeks. Last night on Wall Street, the Dow closed at a new high of 11,727. That is five points higher than the previous record close set in mid January of 2000. Analysts say investors believe falling crude oil prices means company overheads will be cut and consumer spending boosted.
*** Crude oil prices have fallen 25% since July and by 7% in the last two days. Yesterday in New York, the price of a barrel at one point fell to $58.60. It fell further in overnight trade in Asia to $58.42 a barrel. Brent, which we use in Ireland, fell 44 cent in Asia trade to $57.99 after a fall of $2 yesterday. Three broad reasons for the fall include plenty of oil reserves in the US, no threat to supply from the hurricane season and more immediately, a decision by other OPEC members not to follow Nigeria and Venezuela and cut production.
