High mobile phone charges due to poor competition - ComReg

Irish consumers are continuing to pay more than their European counterparts for mobile phone services because of poor competition in the sector, communications regulator ComReg has said.

A ComReg report released yesterday showed that charges for medium and high mobile phone use ranked at 11 and 13 out of 19 EU states in August, while charges for low use were at nine. Tariffs for pre-paid users were rated sixth cheapest.

The document said that "prices in certain segments of the mobile market have remained stubbornly high". The regulator blamed poor competition in the sector for the high charges. Up to recently, Vodafone and O2 have dominated, with almost 90 per cent of the market between them.

ComReg chairwoman Isolde Goggin suggested yesterday that the comparatively cheap charges for pre-paid users were partly because the bulk of Meteor's 400,000 customers were pre-paid.

Fixed-line operator Eircom has agreed to buy Meteor for €420 million, pending Competition Authority approval. ComReg commissioner Mike Byrne said Eircom had pledged to increase Meteor's share to 20 per cent, and this should lead to better price competition in the market.

The ComReg document - its strategy statement for the 2005 to 2007 period - predicted that the recent launch of Hutchison's third generation (3G) service and the regulator's plans to issue another 3G licence should spur further competition.

On October 24th, Eircom is due to give ComReg a document detailing the steps it will have to take to give its competitors access to the lines connecting customers with its exchanges.

ComReg and Eircom met in the High Court earlier this year over the issue, with the regulator coming off second best. Commissioner John Doherty said resolving it was vital to opening up the fixed-line market and expanding broadband services. However, the regulator could not say when it would be resolved.

Mr Byrne said it would be possible to transfer the State's broadcasting networks completely to digital television by 2012.