Phone firms to defend prices to Oireachtas

Representative of the three main mobile phone operators in the State will defend their call charges before the Joint Committee…

Representative of the three main mobile phone operators in the State will defend their call charges before the Joint Committee on Communications, Marine and Natural Resources today.

Their appearance follows that of Ms Etain Doyle, chairwoman of the Commission for Communications Regulation (ComReg), who told the group that Irish mobile phone prices are among the highest in the world.

The largest companies - Vodafone and O2 - between them have 96 per cent of the market. They have argued their tariffs are not excessive and their huge profits in the Irish market result from customers in this region using their mobiles more frequently and for longer durations than other consumers.

Last year Vodafone and O2 reported combined pre-tax profits of almost €300 million and revenue exceeding €1.5 billion. This contrasts with loss-making at many of their sister firms in other European States.

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According to data provided to the Oireachtas by ComReg mobile firms operating in Ireland generated €46 more revenue per average user than every other EU state.

The firms are expected to dispute an allegation by the Consumers' Association of Ireland that they are overcharging consumers.