Presentation to Joint Oireachtas Committee
[27/01/2016]
Jeremy Godfrey, Chairperson
Kevin O’Brien, Commissioner
Gerry Fahy, Commissioner
ComReg - Who we are
 We regulate communications markets so that they operate
effectively in the interests of consumers and society
 Established in 2002 by the Communications Regulation Act
 Statutory objectives include:
 Promoting the interests of end users
 Facilitating competition and consumer choice
 Facilitating innovation and investment
 Ensuring efficient use of radio spectrum
2
ComReg - What we do
 Our functions derive from Irish and EU law
 Regulate operators with significant market power
 Uphold consumer rights
 Manage the use of the radio spectrum
 Assign rights of use
 Manage radio interference (e.g. to support aeronautical safety)
 Ensure delivery of Universal Service in telecoms and posts
 Various other functions, including numbering, charges for the
Emergency Call Answering Service, regulation of Premium Rate
Services
3
Main trends
Users

More
Networks

 Video streaming
 Social media

Better wireless connections
 Faster speeds with 4G
 Smart “things” like
thermostats
 Wider coverage of data
services following changes in
spectrum rules
Less
 Fixed line phone calls
 Text messages
 Smartphone driving high data
usage growth on mobile
4
 Fibre closer to the user
 Smartphones and tablets
 Access via wifi and mobile

Faster fixed connections
Broadband penetration in Ireland
is above EU28 average
Household Broadband Penetration Rates, EU-28 and Ireland
90%
80%
EU-28
76%
Ireland
72%
61%
56%
60%
48%
42%
40%
30%
78%
83%
80%
67%
70%
50%
80%
65%
67%
65%
58%
54%
43%
31%
20%
10%
0%
2007
2008
2009
2010
Source: Eurostat, Information Society Indicators, CSO
5
2011
2012
2013
2014
2015
High speed platforms are taking
greater market share
6
Broadband speeds are increasing
Total Fixed Broadband Subscriptions by Speed, Q3'12- Q3'15
100%
90%
19.9%
32.5%
80%
70%
43.2%
11.1%
54.2%
9.6%
60%
50%
40%
18.6%
61.8%
13.1%
52.5%
30%
34.2%
29.9%
5.4%
4.0%
2.8%
Q3'13
Q3'14
20%
10%
0%
7.9%
Q3'12
Source: Quarterly Key
Data Questionnaire
7
<2Mbps
(2Mbps - 9.99Mbps)
(=10Mbps - 29.99Mbps)
(=30Mbps - 99.99Mbps)
Q3'15
Competition in the retail broadband
market
8
Many providers with a broad range of prices
9
How the fixed market has changed - networks

Much wider availability of high-speed broadband networks
 Eir (previously Eircom) high-speed network covering 1.3 million
premises, with public statements identifying a target of 1.9 million
 Virgin Media covers 760,000 premises
 Siro (ESB/Vodafone JV) plans initial coverage of 500,000 homes
 Overall high-speed coverage of 71% in line with EU average of 68%
 State Intervention planned for last 30% of premises
10
How the fixed market has changed - competition

Increased competition in fixed voice and broadband, between and on
networks
 Market entry by Sky, Vodafone at Home, and others (through
regulated access to eir’s network)
 Virgin Media (previously UPC) has taken significant market share
 Competition on Bundles – voice, broadband, TV and mobile
 Declining importance of fixed voice but increasing importance of fixed
broadband to access data services – especially video
 Wireless, Mobile and Satellite play an important role
11
Competition and consolidation is
changing the the retail mobile market
12
Contract and Prepaid revenue per
user have declined by 8% since 2013
13
Mobile data usage is growing very rapidly
following the launch of 4G
Mobile voice and mobile data volumes in Ireland
3,250,000
30,000
3,000,000
27,500
2,750,000
25,000
2,500,000
22,500
500% Increase
in mobile data usage
since 2011
2,000,000
20,000
17,500
1,750,000
15,000
1,500,000
12,500
1,250,000
10,000
1,000,000
7,500
750,000
4G Launched
500,000
5,000
Multi-Band
Spectrum
Auction
250,000
2,500
Source: Quarterly Key
Data Questionnaire
14
Minutes (000s)
Other Data Vols (000s GB)
Q2'15
Q1'15
Q4'14
Q3'14
Q2'14
Q1'14
Q4'13
Q3'13
Q2'13
Q1'13
Q4'12
Q3'12
Q2'12
Q1'12
Q4'11
Q3'11
-
Q2'11
-
GB per Quarter (000s)
Minutes (000s)
2,250,000
ComReg’s proposed Spectrum Strategy
•
86% increase in the available spectrum for wireless services in 2016
• With regional assignments complementing the National Broadband Plan
• Supporting significantly enhanced wireless rural broadband services
•
With the potential for a further 52% uplift of assignments
•
Including spectrum (700MHz) suitable for rural coverage extension
Spectrum Available and Planned for Mobile
and Fixed wireless broadband services
PAST
FUTURE
+52%
1145 MHz
755 MHz
405 MHz
Existing
15
+86%
2016
2017 - 2019
Consumer surveys show improving
satisfaction with all services since 2013
Source: ComReg (fieldwork and data analysis carried out by RED C)
16
Communications prices have declined by
8% overall since 2011 versus CPI
17
Annual statistics on Customer issues
logged show a downward trend of 15% year on year

The top categories of electronic communications service issues

Billing and disputed charging issues largely unchanged

Contractual matters down by 22%

Service issues down 15%
ECS Comparison
6000
5649 5569
5148
5000
4167
4021
4000
3521
2704
3000
1772
2000
1544
1329 1467
1073
1301
1000
1031
843
629
403 423
0
Billing &
Disputed
Charges
Contractual
Matters
Service Issues
Not for
ComReg
Switching &
Number
Portibility
2015
18
2014
Customer
Service
Installation
Issues
Comreg Other
ComReg not
Consumer Care
Many have benefited but there’s still work to be done
 Substantial progress in bringing advanced services to most
of the population
 Several initiatives will improve experience for users in lessdensely populated areas, and elsewhere
 Government’s National Broadband Plan
 Continued investment by fixed and mobile operators
 Continued aggressive competition
 More spectrum releases by ComReg
 Continued action by ComReg to uphold consumer rights
 Continued action by ComReg to optimise and enforce fair competition
rules
19
Presentation to Joint Oireachtas Committee
[27/01/2016]
Questions