Price hikes of up to 18% are on the way...
Most broadband consumers can expect price rises of up to 18% from September, due to a planned increase in the wholesale rates Eir charges other broadband providers for use of its network.
Eir, the country’s largest telecoms provider has been granted approval by the regulator Comreg, to increase its wholesale rates from €19.50 per month to €23 per month.
The company maintains that the move should be price neutral for corporate customers such as Vodafone, BT, Sky, Magnet and its own retail company due to the impact of other discounts it will introduce during the summer.
But this has been disputed by the other operators who claim the planned price increases and discounts are not related and can’t be offset against each other.
Alternative Operators in the Communications Market (ALTO) - a group who represent broadband operators told The Irish Times that this is a "cynical" move by Eir.
"With improved efficiencies and economies of scale, the costs should actually be decreasing," a spokesperson added.
Eir has defended the charges and said that they are linked to increases in high-speed fibre broadband.
"We believe it is fair that we can make a reasonable return on investment that delivers much-improved services," the company added in a statement.