When one company holds a gigantic 46.8% share in a market one may assume that the competition is weak, that the winning company is providing a much better product. With Eir, that couldn't be further from the truth. Its products are most definitely not superior to the competition in a way that warrants such a high market share.
Eir holds a monopoly in the broadband market, and its reaped major benefits at the expense of the Irish people. Broadband in Ireland is more expensive than almost anywhere else in Europe, why, Eir. When one company holds a monopoly of such large proportions, it cripples competition.
Before I begin this article, I would like to make clear that Eir's presence in Ireland certainly isn't all negative, no other company has the same scale and demonstrated the same commitment to investing in broadband in Ireland.
Eir's existence in Ireland has been a complex one. It's been through multiple rebrands, countless different owners, and even moved headquarters three times. However, through all this changing, the company managed to maintain its broadband monopoly which it cherishes so dearly.
As the incumbent network in Ireland, Eir owns copper lines in Ireland. Competitors such as Vodafone and Sky pay Eir to use its network. Eir effectively controls all of Ireland's Fibre-To-The-Cabinet (FTTC) network, as the network relies on copper between the building and cabinet.
Eir has blatantly abused its power as the incumbent operator on multiple different occasions. These abuses range from charging providers such as Vodafone exorbitant and unsustainable prices to access its wholesale network and neglecting to repair phones lines which it has an obligation (USO) to maintain.
These abuses have hurt competition in the broadband market and raise prices for the Irish people. Eir's actions are completely inexcusable and the company needs a slap on the wrist before things deteriorate.
A National Broadband Plan dictated by Eir.
Ireland's national broadband plan has become a bit of a mess, and Eir is partly to blame for this. Ireland needs to get the plan right and fast, Eir has hampered these efforts.
Eir managed to make a deal with the government which further expanded its monopoly and jeopardised the entire National Broadband process. The deal allowed Eir to select (cherry pick) 300,000 of the most financially economical buildings to connect. This deal has had vast consequences for Ireland. The deal shrank the process to 542,000 premises, a fraction of the original number. This made the deal less lucrative for the bidders, forcing SIRO (A joint venture between the ESB and Vodafone) to withdraw.
Eir was then overtaken by a French Billionaire, Xavier Niel, at the beginning of this year. The company embarked on a cost-cutting saga, shedding 1,000 staff. The company then made a move that would rock the process, it withdrew from the National Broadband Process.
Eir's withdrawal leaves Enet, the remaining contender, and the government, with an almost insurmountable task. As Eir is the incumbent operator and owns the majority of the country's poles and ducts, the government will be forced to pay Eir for using its infrastructure. This will almost certainly lead to judicial battles as the government will seek discounts to access Eir's infrastructure.
Either way, Eir will be a major player in the process.
Eir holds a monopoly in the broadband market, and its reaped major benefits at the expense of the Irish people. Broadband in Ireland is more expensive than almost anywhere else in Europe, why, Eir. When one company holds a monopoly of such large proportions, it cripples competition.
Before I begin this article, I would like to make clear that Eir's presence in Ireland certainly isn't all negative, no other company has the same scale and demonstrated the same commitment to investing in broadband in Ireland.
Eir's existence in Ireland has been a complex one. It's been through multiple rebrands, countless different owners, and even moved headquarters three times. However, through all this changing, the company managed to maintain its broadband monopoly which it cherishes so dearly.
As the incumbent network in Ireland, Eir owns copper lines in Ireland. Competitors such as Vodafone and Sky pay Eir to use its network. Eir effectively controls all of Ireland's Fibre-To-The-Cabinet (FTTC) network, as the network relies on copper between the building and cabinet.
Eir has blatantly abused its power as the incumbent operator on multiple different occasions. These abuses range from charging providers such as Vodafone exorbitant and unsustainable prices to access its wholesale network and neglecting to repair phones lines which it has an obligation (USO) to maintain.
These abuses have hurt competition in the broadband market and raise prices for the Irish people. Eir's actions are completely inexcusable and the company needs a slap on the wrist before things deteriorate.
A National Broadband Plan dictated by Eir.
Ireland's national broadband plan has become a bit of a mess, and Eir is partly to blame for this. Ireland needs to get the plan right and fast, Eir has hampered these efforts.
Eir managed to make a deal with the government which further expanded its monopoly and jeopardised the entire National Broadband process. The deal allowed Eir to select (cherry pick) 300,000 of the most financially economical buildings to connect. This deal has had vast consequences for Ireland. The deal shrank the process to 542,000 premises, a fraction of the original number. This made the deal less lucrative for the bidders, forcing SIRO (A joint venture between the ESB and Vodafone) to withdraw.
Eir was then overtaken by a French Billionaire, Xavier Niel, at the beginning of this year. The company embarked on a cost-cutting saga, shedding 1,000 staff. The company then made a move that would rock the process, it withdrew from the National Broadband Process.
Eir's withdrawal leaves Enet, the remaining contender, and the government, with an almost insurmountable task. As Eir is the incumbent operator and owns the majority of the country's poles and ducts, the government will be forced to pay Eir for using its infrastructure. This will almost certainly lead to judicial battles as the government will seek discounts to access Eir's infrastructure.
Either way, Eir will be a major player in the process.
