Eir claims the duty to provide phone services for all has 'unlawfully interfered' with its rights
The former state-owned company is fighting a ComReg decision.
FORMER STATE-OWNED TELECOMS provider Eir has brought a legal challenge against a decision by ComReg which it says “significantly constrains its ability to freely conduct its business affairs” compete with other electronic communication services providers.
Eircom Limited, now known as Eir, is appealing the communications regulator’s decision designating it as the ‘Universal Service Obligation’ (USO) for providing fixed-line access across the entire state.
The decision, made in July, means Eir is required to meet all reasonable requests for access to electronic communication services at fixed locations.
It also requires Eir to meet mandatory achievement targets in regards quality of service, fault repair time and connection time.
Eir says because of the decision it is obliged in certain circumstances to provide connections to its network supporting telephony and dial-up internet access.
That is despite the fact, the company claims, it may be both uneconomical to do so and mobile phones are widely available and now the primary way of making telephone calls.
‘Burdensome and expensive’
Eir says in order to meet what it says are “burdensome and expensive” ‘quality-of-service’ requirements it needs to invest significant amounts in its legacy copper electronic communications network, which it says is becoming obsolete.
The state is now rolling out high-speed, fibre-based broadband networks under the National Broadband Plan initiative, Eir also adds.
It claims ComReg erred in law in its decision to re-impose the USO. It claims the regulator has imposed obligations on it that are unreasonable, disproportionate without any legal or factual justification.
Eir argues ComReg also used a designation process that was “fundamentally flawed”, has “unlawfully interfered with Eir’s property rights”, and failed to properly explain its decision.
The action was admitted to the fast-track Commercial Court list by Justice Brian McGovern.
Eir says it fully recognises the social value and benefits the universal service has brought to Ireland, but says that it has been at a significant cost to the company.
It says that as the universal service provider it is entitled to funding but has not received any compensation. It has five separate requests for funding totalling €45 million before ComReg.
