Plan could reduce cost of mobile calls

Mobile phone users could benefit from cheaper calls following a consultation process initiated yesterday by the Office of the…

Mobile phone users could benefit from cheaper calls following a consultation process initiated yesterday by the Office of the Director of Telecommunication Regulation.

In the consultation paper, the regulator Ms Etain Doyle raises the issue of enabling new players to enter the mobile market by gaining access to the networks of existing operators. Although only a consultation paper and not binding, the document states that access to mobile networks has the potential to "stimulate greater competition in the mobile market by providing consumers with more choice and possibly lower prices."

Drawing on data from three separate pricing studies the regulator paper highlights that consumers in the Republic pay more than most other European Union citizens for mobile phone calls.

Figures included in the report show that half the population of the Republic now own a mobile phone and market share for the market leader, Eircell, has fallen to about 60 per cent this year down from 75.6 per cent in March 1998. The paper estimates Esat Digifone's market share at about 40 per cent.

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However, despite Eircell's declining market share, the regulator document concludes growing demand in the mobile market has grown the company's total subscriber base and revenue.

The paper sets out several potential methods for new players to gain access to networks including the resale of mobile airtime, independent service provision, indirect access and mobile virtual network operators.