Watchdog hits Eir with €2.45m fine for overcharging customers

News

The regulator says tens of thousands of customers are owed compensation

This week, the Irish Commission For Communications Regulation (ComReg) has ordered mobile Eir’s owner Eircom to pay a fine of almost €2.5 million for overcharging its customers.

The news follows a series of investigations by the regulator, spanning the period between 2015 and 2021, which found that an estimated 76,000 customers had been overcharged.

The ruling called for Eir to issue refunds to all affected customers, with the regulator estimating that Eir had made around €6.7 million in revenue through overcharging during the six-year period. If all of these refunds are issued, each affected customer would be entitled to roughly €88.

Eircom said that the overcharging was a result of a “broken bundle” on customers’ accounts and said they would implement “backward-looking measures” to identify the affected customers. However, they emphasised that issuing the refunds could be a lengthy process.

“[We have] already commenced a review process of an agreed cohort to identify any unresolved instances of incorrect charging and will ensure any such customers are reimbursed as soon as possible,” said the company in a statement. “Eir apologises unreservedly to any customer who we identify as part of the review, as having been inadvertently charged incorrectly and has committed to actively processing any refunds that may be identified.”

As well as looking backwards, Eir said they would also implement a number of system updates over the rest of the year, including a new billing system, to ensure that these mistakes did not happen again.

These measures will include the company “proactively reviewing credits and disputes that could identify potential billing issues not already addressed”.

An independent auditor has been appointed to ensure that all agreed measures are completed by the end of the year.

This is not the first time that Eir has faced ComReg’s wrath in recent years. In 2018, the company was stung by a €3 million fine after a settling a case that alleged the company had given illegal preferential treatment to its own retail division when it came to granting access and repairing lines.

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Tamares Telecom and Grid Telecom partner for ANDROMEDA submarine cable

Press Release

Tamares Telecom, a leading fiber-based international communications and data service provider and network operator, a subsidiary of Aluma Infrastructure Fund and Grid Telecom, a wholly owned subsidiary, and the telecommunications vehicle of the Independent Power Transmission Operator (IPTO) of Greece, agreed to build ANDROMEDA, a subsea optical fibre cable system connecting Greece, Cyprus, and Israel.

The strategic partnership between Grid Telecom and Tamares Telecom for ANDROMEDA will bring advanced data transport solutions, to create a new telecommunications corridor between Europe and the Middle East. Leveraging on the strategic positions of Greece and Israel, the transcontinental fibre cable system will also offer wholesale customers leading edge connectivity and international reach across the European continent, the Mediterranean and the Arabian Peninsula, through the development of an alternative international digital highway that is much needed by the regional economy.

Emerging as the prime wholesaler in the Greek market, Grid Telecom exploits IPTO’s extensive optical network in Greece and neighboring countries and integrates it with its own fibre links and Points-of-Presence, to achieve network diversity, maximum security, and exceptionally low latency while creating a new carrier neutral, open-access, connectivity hub in the region.

Tamares Telecom owns and operates TAMARES-NORTH, a high-capacity subsea cable system between Israel and Cyprus, with extensions to multiple international destinations, providing customised communication and cloud infrastructure solutions and services. The strategic agreement with Grid Telecom for ANDROMEDA is in line with Tamares Telecom’s strategy of strengthening its infrastructure, expanding its international network, and increasing its entry points to Europe by providing an eastern gateway via Greece through the new cable system.

The ANDROMEDA system will connect Israel, Cyprus, and Greece through an alternative low latency path between Europe and the Middle East, extending through additional subsea and terrestrial links westwards to the Balkans and important destinations in Central and Western Europe, and eastwards to the Arabian Peninsula and other destinations.

“Tamares Telecom is continuously developing and extending its national and international infrastructure. Our collaboration with Grid Telecom to build and operate the ANDROMEDA system will add explicit value to our robust reach in Europe and the Middle East. Our investments in new infrastructure projects and solutions reiterate our leading position thanks to the multiple layers of our infrastructure diversity, which include establishing new subsea cable systems and crossing routes that will cater for the rising market demand for high quality bandwidth data transport, through an alternative telecommunications bridge between East and West,” said Ori Yogev, Chairman of Aluma Infrastructure Fund.

“IPTO is building critical infrastructure for tomorrow’s electricity and telecommunications backbone networks throughout Greece and beyond, contributing to Greece’s transformation into a critical energy and data hub of high geopolitical value at the crossroads of Europe, Africa and Asia. In this context, the fact that Israel is fast developing into a key international telecommunications hub in the Middle East, creates strong synergies and win-win business opportunities. We are very pleased that the cooperation between IPTO’s subsidiary, Grid Telecom, and Aluma’s subsidiary, Tamares Telecom, has culminated in the agreement to build the ANDROMEDA subsea cable system, bringing a new international route that will enhance the strategic role of Greece as a neutral open-access connectivity node in the broader Balkans – Mediterranean region,” said Manos Manousakis, the Chairman and CEO of IPTO.

Want to keep up to date with all of the latest telecoms news from the submarine cable industry? Join the cable operators in discussion at this year’s live Submarine Networks EMEA event!

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Freedom Fibre: A customer-centric approach to boosting full-fibre uptake

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For the past two years, Freedom Fibre has been working tirelessly to bring a full-fibre network to both rural and urban areas of the North West. Through this time, they’ve seen the Alt-Net Sector shift the focus from increasing build numbers to the importance of increasing connection rates. In a recent interview with Total Telecom at the 2023 Connected North Conference, Freedom Fibre’s CFO, Darren Woods, highlighted this change and argued that a customer-centric approach to the full-fibre network roll-out was essential in generating more interest and increasing the slow rates of uptake.

In the interview, Woods noted that many consumers don’t feel the need to make the switch to full-fibre, and therefore priority must be given to ensure residents feel informed on the reliability and resilience benefits of full-fibre as well as the upcoming structural changes associated with the copper switch off. In addition, Woods highlighted the importance of having healthy and rigorous competition within the Alt-Net sector which would make full-fibre more accessible and ultimately generate value for customers. Through this he emphasised the need for efficient networks, and how Freedom Fibre’s proposition for an aggregation platform could help other Alt-Nets gain access to a wider market and would make it easier for consumers to switch broadband providers.

You can watch our full interview with Darren from the link below

For more information about Freedom Fibre’s roll-out plans, head to www.freedomfibre.com

Planning for Connected North 2024 has already begun! For more information and to get involved, please contact Dominic Beresford-Webb at dominic.beresford-webb@totaltele.com

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