Through pricing principles and transparency obligations, ComReg aims to ensure Eircom cannot take unfair advantage of the recently deregulated WCA market
Ensuring Eircom is not causing a margin squeeze in the wholesale fibre market
On 25 September 2026, ComReg opened a four-week consultation on a draft decision to further specify Eircom’s margin squeeze obligation under the regulator’s January 2024 fixed access market review decision. Eircom’s significant market power (SMP) designation in the commercial next-generation wholesale local access (NG WLA) market requires it not to cause a margin squeeze between fibre-to-the-premises (FTTP) virtual unbundled access (VUA) and FTTP-based wholesale services provided downstream. To more effectively enforce this obligation, Eircom would be subject to new “pricing principles” and additional transparency requirements. The 2024 market review imposed a retail margin squeeze test (MST) on Eircom, which ComReg considered would reduce its incentives to engage in a margin squeeze in respect of bitstream services. ComReg’s analysis of volume trends indicates that since the review, Eircom has increased its presence in backhaul networks, mainly via a significant shift from FTTP VUA towards bitstream. ComReg states that much of Eircom’s recent backhaul tenders have been procured through large-scale custom tenders extending beyond traditional bitstream provision – thereby making it easier for Eircom to avoid scrutiny under the retail MST.
The former incumbent would require regulatory approval for certain wholesale contracts
ComReg considers that Eircom’s increase in bitstream volumes alongside complaints about tender pricing for its FTTP VUA backhaul product may be increasing price pressure on competitors and the incentive to engage in “margin squeeze conduct”. ComReg considers that squeezing competition in the WLA market (FTTP VUA) may be encouraging movement to the WCA market (bitstream), where Eircom is no longer subject to ex-ante regulation. ComReg therefore considers it appropriate to take precautionary action by further specifying Eircom’s SMP obligation. The draft decision argues that reintroducing an old wholesale FTTP-based VUA MST, which was imposed between 2018 and 2024, would not be effective, as the larger, custom deals in question would not be in scope. Instead, ComReg proposes assessing FTTP VUA backhaul contracts or arrangements on a case-by-case basis. The regulator has stated that it would focus on deals that are deemed capable of having a “material and enduring” impact on fixed broadband markets. Eircom would be required to notify ComReg for prior approval for any such contracts, with the regulator checking to ensure that Eircom’s revenue from the deals covers its costs of supplying the relevant infrastructure.
A contract’s volume, duration and pricing could lead to an eight-week assessment by ComReg
ComReg has proposed three thresholds to determine whether these FTTP VUA backhaul contracts could have a sufficiently significant impact on fixed broadband markets:
The contract’s volume of lines exceeds 5% of the total contestable demand for broadband backhaul (roughly 46,000 lines);
The duration of the contract is longer than three years; and
The backhaul per month/line price offered is below ComReg’s defined long-run incremental cost (LRIC) cost benchmark (the cost per-line Eircom uses in its retail FTTP MST submissions).
Deals meeting all three of the thresholds would incur a six-week regulatory assessment resulting in approval or rejection – but this can be increased to eight weeks if ComReg requires more information. Deals meeting only the volume and duration thresholds would require Eircom to notify ComReg within 30 days of agreement.
