Comreg telling Eircom to increase Prices

I

irishlinks

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What are Comreg doing? They have told Eircom they have to increase prices on their phone and broadband bundles because it's not fair on the others!!
Their packages included free calls to Meteor mobiles and Vodafone complained. Eircom are challenging the ruling - I hope they win. What are comreg playing at?
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It happened in the UK when there was privatisation. It makes sense (sort of). Eircom have the bulk of the market and have the name for providing these services, they also have the resources to undercut and for marketing.

Restricting them and their prices allows the others to make a dint in their monopoly, well that's the idea anyway.

BT went through the same I seem to remember, but it only lasted until there was ample competition.
 
But isn't the whole idea of competition to reduce prices for the consumer (I thought). If Vodafone want to do something about it why don't they reduce prices.
(By the way - the Irish Times article says Eircom offer free unlimited calls to Meteor - they don't - it's limited to 500 mins a month.)
 
Comreg are doing what Eircom want....same way as the Energy Regulator does what ESB want....and the same way that the Financial regulator does ....well absolutely f.all....
 
That would generally be how competition works. But Eircom have the bulk of the market and are in a position to squash any competition before it even has a chance to take hold. Let's face it they haven't exactly been accomodating to other companies when it comes to broadband roll out. The restrictions on Eircom is to give others a chance to get a foot in the market first, then Eircom can go about competing.

It's a standard practice when you've had a monopoly for so long and have set about introducing competition. I think the BT experiences were that they lost customers to the new companies, but when the restrictions were lifted, they regained a lot of them back.

Eircom have a massive hold on all things telecommunications related, they have huge resources, they have the name and they have the trust element. It isn't an equal footing for competition to begin, so they introduce this restriction on Eircom undercutting competitors.
 
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