Launch of 3 boosts mobile phone competition

COMPETITION in the mobile phone market will be boosted next month with the launch of new operator 3.

The company, which won one of the four licences to operate third generation (3G) advanced video mobile phones, has not divulged the full details of its launch, but it is expected that consumers will be able to sign up to 3 by the end of July. The company is building up its network and will have full coverage by launch date through a roaming agreement with Vodafone.

Under the terms of its licence from telecoms regulator ComReg, it must have 53% of the population by the end of this month. The company’s corporate affairs director Mark Rigby said yesterday that this target has been exceeded.

Mr Rigby said 3 will bring real value to the Irish mobile market and believes that its prices, and content such as full length music video and premiership football highlights, will attract customers. So far, 3 has spent around €150 million on its licence and building up its network, which is not yet complete. Millions more will be spent on retail outlets and the launch.

The company is recruiting staff in Ireland, but some function, such as customers’ service call centres, will be run out of its other operations.

Mobile phone prices in Ireland are among the highest in Europe, and while we spend much longer using them, the soaring costs will give 3 scope to attack the subscriber bases of the three current operators on price grounds. So far, only Vodafone has launched 3G services in Ireland, with 02 expected to follow suit later this year.

3, owned by Hong Kong conglomerate Hutchison Whampoa, has eight million 3G customers worldwide and was the first company to launch in Britain.

It also emerged last night that ComReg has received an expression of interest for the last 3G licence.

It did not say who made the offer, but speculation centred on either Eircom or Meteor.