ComReg to spend close to 3/4 Million to decide on a decision to break up eircom

From here:

ComReg wishes to announce that it has awarded four contracts to three sets of consultants, for consultancy services advising on eircom’s proposed structural separation. The total value of all four contracts awarded is €712,846

Consultancies who will write a report, that will end up with ComReg coming to a decision about eircom, which will lead to a public consultation, which will lead to a further decision which will lead to what exactly…

I don’t think they have the moxy or the power to split them. eircom have said they’re splitting, not like they can be stopped.

2500 people have subscribed to my website instead of coming back each day. You can subscribe to the site using a feedreader or email. I'm also on Twitter. My online marketing blog might also be worth a visit. Thanks for visiting - Damien.

13 Responses to “ComReg to spend close to 3/4 Million to decide on a decision to break up eircom”

  1. mj says:

    That’s beautiful.

  2. Keith says:

    It’s like the Christian Solidarity Party writing a position paper on how they should negotiate during the next Government formation.
    There’s very little point planning how to do something you don’t have the power to do.
    What next, a National Broadband Plan from Comreg? Oh, wait…

  3. squid says:

    Here is how the breakup of eircom will go in the comreg office

    “one future managerial position for you, one for me, one for you , one for me.”

  4. Evert Bopp says:

    Decide what exactly?

  5. As I understand it, they need to decide what rate of return on capital the wholesale company will be permitted to have. If this is too low (and from what i’ve heard, the figure comreg has in mind is unrealistically low) then eircom will be better off staying as a unitary company.

  6. Evert Bopp says:

    Better of in what way?
    Eircom is a public company their only consideration is their shareholders.
    Comreg should have intervened at an earlier stage (before the privatasation).
    Any action now is just pointless…

  7. Tom Young says:

    Before the summer? That’s eircom’s aim. I can’t see it myself.

  8. Evert: yes, better for the shareholders of eircom. eircom is a business. Realistically, the only way eircom can make a lot of money is through an increase in strength in the Irish telecoms marketplace. The best way to bring that about would be structural separation. That’s why they want to do it. But they won’t do it if the cost is going to be greater than the benefits, which is understandable.

    It’s ridiculous to say that comreg should have intervened before privatization. Privatization was government policy. They weren’t in a position to intervene.

  9. Evert Bopp says:

    Antion: Your first “statement” is obvious. While we need to solve the broadband issue it should not be done by meddling in the private sector. We need policy and we need initiative (apart from insight and an understanding of the matter).

    AS for your second comment; is Comreg not a government body and should it not have foreseen the potential for problems that a privatization of the national telecoms infrastructure could cause? And as such should it not have intervened?

  10. Keith says:

    I’m pretty sure Comreg didn’t exist until privatisation.

  11. Evert Bopp says:

    OK, my bad.
    But ComReg being an part of the government you can deduct what I meant…

  12. Comreg has a degree of autonomy, but it is certainly accountable to government and has to implement government policy. Its job is to implement government policy.

    ODTR was there before privatisation, I’m fairly sure.

    The way for the government to stop meddling is to get eircom split up as fast as possible. It’s not a panacea, but it’s a start.

  13. mj says:

    I thought the ‘big deal’ was the fact that a quarter of a million Euro were being wasted…

    …but I guess there are other issues.

Leave a Reply