Irish mobile phone prices are among the highest in the world and have fallen more slowly than in most other States, the communications regulator said yesterday.
Ms Etain Doyle, chairwoman of the Commission for Communications Regulation (ComReg), blamed lower competition in the Republic because of the late entry of Meteor into the market.
Ms Doyle's comments to the Oireachtas Committee on Communications will increase pressure on the three Irish mobile phone firms to reduce their rates.
The biggest companies Vodafone and O2 - which hold 96 per cent market share - have consistently argued that their tariffs are not excessive and their huge profits are generated because Irish people use their mobiles more than other consumers.
Last year the Irish operations of the multinational firms Vodafone and O2 reported combined pre-tax profits of almost €300 million and revenue exceeding €1.5 billion. In contrast, many of their sister firms in other continental European states reported a loss.
Pricing data presented by ComReg to the committee shows the average retail price per minute in Ireland is higher than in Sweden, the US, the UK, western Europe and France. The data, prepared by consultants Strategy Analytics earlier this year, shows only Spain is at the same level as the Republic, with a mobile price at just under 30 cents per minute.
ComReg also provided information to the Oireachtas committee showing that Irish mobile firms generated more average revenue per user (ARPU) - a key metric in the industry - than in every other EU state. Only Swiss and Norwegian users spend more on their mobile phone bills than Irish consumers, who pay about €46 per month to firms.
Ms Doyle rejected a suggestion, made earlier by the Consumer's Association of Ireland in a presentation to the committee, that her office had been bullied on pricing by the mobile companies operating in the Republic.
When this suggestion was put to Ms Doyle by chairman of the committee, Mr Noel O'Flynn, she said she did not believe her office had responded to bullying by mobile firms in any way. She said the office had taken very strong and often unpopular decisions.
"I think we are very fair in looking at our obligations and responsibilities," she added.
Ms Doyle said ComReg was currently undertaking a review of mobile phone pricing, which could potentially lead to future regulatory intervention.
This investigation was due to be completed early next year. But any regulatory action would be subject to a veto by the European Commission, she added.
Earlier the Consumers' Association of Ireland criticised the mobile industry for ripping off consumers and called for greater competition in the market. It also highlighted that pre-paid users often paid four times more per call than contract phone users.
The mobile firms are expected to be called before the Oireachtas Committee in two weeks. It is expected they will dispute the allegation by the Consumers' Association of Ireland that they are overcharging consumers.
