Mobile firms pledge 10% a year drop in call charges

IRELAND’S top mobile phone companies yesterday promised to reduce call charges by as much as 10% a year for the next couple of years.

Put under the spotlight by the Oireachtas Communications Committee chairman Noel O’Flynn, O2 and Vodafone both denied they were operating a price cartel and that customers were being ripped off.

Last week telecommunications regulator Etain Doyle told the committee that the average monthly Irish mobile bill was €45 compared to a €30 EU average.

The Consumer Association of Ireland also claims that customers are being ripped off as pre-paid mobile phone users are being charged up to four times more at peak times than business customers.

However both O2 and Vodafone yesterday rejected they were overcharging and insisted that higher bills in Ireland were down to higher phone usage. Both companies said Irish mobile phone users used their phone for more than 180 minutes a month compared to just over 100 minutes in other European countries.

Both companies also denied they were engaged in any kind of cartel or price fixing behaviour when pressed by Deputy O’Flynn. “I completely refute any such allegation or implications,” said Mr Donovan.

The companies said that call charges had been falling in recent years and would continue to do so. Mr O’Donovan forecast a probable 10% decrease for the next two years.

O2 said the price per minute for pre-paid calls had already been reduced by 28% since 2000 and would continue to come down so this year.

However Fine Gael’s Simon Coveney questioned whether customers were being ripped off if phone companies could afford to drop prices so much. “How can you say prices will fall by 10% this year and 10% next year and at the same time not suggest that customers are being overcharged at the moment?” he asked.

Mr O’Flynn confirmed that the Dáil Communications Committee has decided to call on an international mobile phone expert to examine whether Irish customers are being overcharged.