Case study

Eircom

Realising the value of Eircom's telecoms network investment

Eircom plc is the Republic of Ireland's largest communications company and the principal provider of fixed line services in the country. PA Consulting Group was invited by Eircom to help develop, validate and implement an innovative cost restructuring solution to release value from the access network build operation.

"We've only got two years to do what BT did in ten"

Cathal Magee
Managing Director
Eircom Ireland

The combined PA/Eircom team established two joint venture companies with world class suppliers to help build and maintain the network. The service contracts delivered significant cost savings and quality improvements to Eircom. In addition to this, Eircom has also established equity stakes in these joint ventures, in recognition of the value of the contribution Eircom has brought to their businesses.

Having proved the benefits of this innovative approach to outsourcing, Eircom is now applying the same principles to other major areas of its business to reduce costs and increase flexibility across the company. The access network now operates within best-in-class cost structures, with the flexibility to cope with changes in demand, and Eircom is now in a position to compete with new entrants to the fixed line marketplace.