Wednesday, July 13, 2011

The Lines Have Been Drawn




More Irish homes than ever are abandoning landlines and home phones in favour of mobile phones. 35% of all homes are now without a landline. That's the 3rd highest rate in the EU.

There's a very simple reason for this. Eircom the semi-state company with the monopoly on line rental charges the highest prices in Europe for land rental - 66% above the EU average. This is the same former state-owned company that has dragged their heels on line unbundling and hampered broadband rollout through countless legal battles to prevent competition and keep prices high.

Now the market is slower but surely eating away at Eircom's margins and the poorly managed, over-staffed dinosaur is coming to the end of its road. There'll be wailing and gnashing of teeth over the next couple years as this relic of old Ireland blames the government, the customer and competition. So what! It's inept, uncompetitive and backward organisations like this one that has led the country to where it is right now.

The sooner Eircom is no more, the better

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