The story
The company was formed in 1984 as Bord Telecom Éireann, under the Posts and Telecommunications Act 1983.
Telecom Éireann was privatised; the process began in 1995, and by July 1999 the government had disposed of virtually all of its shareholding. This was very controversial and subject to much debate. Eircom plc was then floated on the Irish, London and New York Stock Exchanges on 8 July 1999, and small/first-time investors were encouraged by the Irish Government to buy shares. The share price was set at €3.90, later reaching a high of €4.80, a 23% increase. Those initial investors who held onto their shares, until July 2000, received a 4% bonus-share allocation.
The Eircom flotation is considered to have been an example of a stock market bubble — after the initial hype of the flotation died down, the stock price fell rapidly. Many of the 500,000 small investors were angered by the significant financial loss they incurred, blaming the government for not sufficiently warning them of the risks inherent in stock-market investment.
Although EU laws required the opening of the Irish telecommunications market, Ireland had a derogation from competition until 2003. Eircom was designated by ComReg as the organisation with ownership of the National Directory Database (NDD) and a Universal White Pages (UWP) directory; the unit within Eircom responsible for providing these was the National Directory Information Unit (NDIU).
In December 2019 this agreement expired and ComReg extended the management of the NDD to all current providers, Eir did not declined to propose extending the agreement. A Dutch company PortingXS became the subsequent manager of the NDD as it was the only provider that flagged an interest.
From 1991 to 2013, Eir's subsidiaries included Phonewatch, then known as Eircom Phonewatch, which provides home monitoring services, monitored burglar-alarms, fire alarms, CCTV systems, and medical alert devices. In May 2013, it announced that Phonewatch had been sold to Oslo-based company, Sector Alarm.
From 1999 to 2006 sponsored RTE Weather and from 2000 to 2008, Eircom sponsored the League of Ireland.
Disposal of Eircell, going private and reflotation
In 2001, Eircom sold its mobile subsidiary Eircell to Vodafone. The company was transferred to a separate entity, Eircell 2000 plc which was then sold to Vodafone through a share swap. Eircom shareholders got Eircell shares in a 1000/1 ratio. The conversion rate was then 0.9478 Vodafone shares for every 2 Eircell 2000 shares. This left the Eircom shareholder with shares in both Eircom and Vodafone.
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After the sale of Eircell, Eircom itself was believed to be undervalued and became the subject of a bidding war between two consortia: the E-Island consortium headed by Denis O'Brien, and the Valentia Consortium headed by Tony O'Reilly, the chairman of Independent News and Media. Eventually in November 2001, the company agreed to a recommended offer of €1.335 per Eircom share. Eircom Plc was delisted from the stock exchange, became Eircom Limited, a private limited company by shares and a subsidiary of Valentia, and O'Reilly took the reins as Executive chairman.
On 19 March 2004, the company returned to the stock market (although the company being listed, Eircom Group plc, was in fact a new holding company, and was registered in England and Wales rather than in Ireland). The company floated at €1.55 a share, but dipped on initial trading before recovering to trade above its float price.
Return to mobile, acquisition of Meteor
In early 2005, several Irish newspapers reported that Meteor Mobile Communications, the third mobile phone operator, was up for sale by its owners, Western Wireless. It was considered that this afforded Eircom an opportunity to re-enter the mobile communications market. On 9 July 2005, The Irish Times reported three bidders for Meteor: Eircom, Smart Telecom, and a consortium led by Denis O'Brien. On 14 July 2005 RTÉ News reported on their business website that Denis O'Brien had withdrawn from bidding, and that it was understood that Eircom was the top bidder at €410 million. On 21 July, it was announced that Smart Telecom had also withdrawn, leaving Eircom as the sole bidder. Eircom announced the agreement to purchase it on 25 July 2005 at a cost of €420m. As of 31 December 2012, Meteor had over 1,086,000 customers and a market share of 20%, offering both GSM and 3G mobile telephony and broadband services.
In May 2006, Eircom announced its sale to the Australian investment group Babcock & Brown as part of a deal worth €2.4 billion. The Employee Share Ownership Trust, which represents workers at the company, was to remain a minority shareholder. The sale was approved by shareholders on 26 July 2006, and at close of business on 17 August 2006, the shares were delisted from the Official Lists of the Irish Stock Exchange and the London Stock Exchange, ending Eircom's second period on the stock markets. The same day, Phillip Nolan resigned as chief executive of Eircom, and on 1 September Rex Comb was officially named as the new CEO. Tony O'Reilly resigned as chairman and was replaced by Pierre Danon, previously of BT Group plc and JP Morgan Chase.
Babcock & Brown have since collapsed as a company and their BCM vehicle, which owns over 50% of Eir, broke all ties with the former parent and rebranded themselves as Eircom Holdings Limited.
Eircom was also successful in bidding for a 4G LTE License from Comreg, which permitted Meteor and eMobile to launch 4G services in 2013.
Examinership
Eircom notified the public in February 2012 that they had decided to no longer honour their debt, had entered default status and would not continue as a going concern. Eircom gave notification that they had cancelled a mandatory interest payment on their publicly traded senior corporate bond, then due to mature in 2016.
On 29 March 2012, a number of companies within the Eircom Group presented a petition to the Irish High Court for the appointment of an examiner. The examinership lasted until 11 June 2012; the restructuring removed €1.7 billion of debt from the balance sheet, a reduction of 40% of group debt.
In September 2015, Eircom announced that it would re-brand as eir as part of a new imaging campaign developed by Moving Brands. Described as being "dynamic and modern", the new brand was adopted across most of Eircom's businesses (excluding Meteor), and an advertising campaign was introduced to promote the new name and slogan, "Live life on eir".
In December 2017, Iliad SA announced that it would be acquiring a 32.9% stake in the company with an option to take control of the Irish operator through a call option, which is exercisable in 2024.
Acquisition of Setanta Sports and launch of Eir Sport
Eir Sport commenced broadcasting on 5 July 2016 following the takeover of Setanta Sports by Eir. Two Irish commercial stations, Eir Sport 1 (formerly Setanta Ireland) and Eir Sport 2 (formerly Setanta Sports 1), join BT Sport 1, BT Sport 2, BT Sport Europe and BT Sport ESPN to make up the 6 channel Eir Sport pack. Setanta Sports was formed in 1990 to facilitate the broadcasting of Irish sporting events to international audiences.
In May 2021, it was announced that eir Sport would cease operations by the end of 2021.
From Wikipedia’s article on Eir (telecommunications), shared under CC BY-SA 4.0.4