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ComReg's plan to cut Eircom prices cleared

Eircom - EU clears ComReg price cuts
Eircom - EU clears ComReg price cuts

The European Commission has approved a proposal by the telecoms regulator to lower prices charged by Eircom to competitors for granting access to its network.

The Commission also cleared the way for ComReg to cut Eircom's charges for moving consumers from one service to another.

The measures were an important step towards boosting direct investment in infrastructure and enhancing competition in the Irish broadband market, the EU executive said.

'Broadband competition in Ireland is currently being held up by the high access prices Eircom charges,' EU Telecoms Commissioner Viviane Reding said.

'This move will allow for greater flexibility and innovation in the provision of broadband Internet services and ultimately lead to wider choice and lower prices for consumers,' she added.

Eircom will have to reduce the fee it charges other operators for accessing the last stretch of its infrastructure to provide broadband Internet services to homes and businesses.

ComReg believes the fee Eircom charges other operators for moving customers is excessive and runs contrary to the firm's obligation to charge cost-oriented prices, the Commission said.

EU Competition Commissioner Neelie Kroes said the moves will mean alternative operators have to pay much less for access to eircom's broadband network, enabling them to make more attractive retail offers.