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Overnight collapse of Smart exposes chaos of Irish telecoms industry

Issued : Tuesday 3 October, 2006

Labour Party Spokesperson on Communications, Tommy Broughan TD, has said that the overnight withdrawal of fixed line telephone and broadband services to 40,000 Smart Telecom subscribers highlights the chaos of the Irish Telecoms industry that has left customers high and dry.

Deputy Broughan said this situation further highlights the complete market, Government and regulatory failure of the Irish telecoms sector.

“In a modern, developed, high-tech economy such as our own, it is unbelievable that Smart Telecom business and domestic customers are woke-up this morning to find their phone and internet services suspended. Smart customers have been treated appallingly by the company and by Eircom, and serious questions have to be answered by both the Communications Regulator and, ultimately, Minister Noel Dempsey.

“In the short term, why were customers not given any advance warning from Smart Telecom of the withdrawal of the service? Why were Eircom allowed, at the flick of a switch, to withdraw phone and internet services to 40,000 Smart Telecom subscribers? What type of market facilitates such atrocious levels of consumer protection that facilitates such behaviour?

“In the longer term the Regulator must outline what guarantees it was given by Smart telecom to allow it to peddle its broadband and telephone services to the Irish public that ultimately it could not deliver?

“While the demise of Smart Telecom has been sudden – and it does appear as if its decline is terminal – the writing has been on the wall for the company since ComReg suspended its 3G licence earlier this year. But why was it allowed to continue to trade, and why did the Regulator not intervene on behalf of Smart customers?

“While clearly major problems remain for operators in terms of accessing the local loop, Smart Telecom should not have been allowed deteriorate to such an extent that has seen its customers suffer so badly. Moreover staff at the company also face an uncertain future, and their situation must be clarified as quickly as possible tom allow them seek alternative employment and make plans for the future.

“I will be raising these matters in the Dail with the Communications Minister at the earliest opportunity to see what can be done for Smart customers, yet sadly this is one of the darkest days in recent years for the entire telecoms industry.”