Meteor welcomes Ahern’s mobile directive

METEOR has welcomed plans by Communications Minister Dermot Ahern to increase competition in the mobile phone market by ordering the main operators to open up their networks.

Meteor said the move, confirmed by the minister at the weekend, will mean that Vodafone and O2, which have a combined 95% of the market, will have to open their networks to Meteor. This will allow Meteor customers to roam on their networks while it builds up his own network.

"Nobody can enter the market and be a competitor overnight, because it takes a long time to physically build a network. We are well up to 85% network coverage, but it has taken three years to get that far. National roaming is the only way," Meteor corporate affairs director Andrew Kelly said yesterday.

Mr Ahern issued draft policy directions to the Communications Regulator (Comreg), to cut prices for all telecoms services.

"This move will provide all the three licensed mobile phone operators with nationwide coverage and equal opportunity to compete and drive down mobile phone prices," the minister said.

Ireland's mobile market is dominated by the big two operators. A third player, Hutchison Whampoa, will launch advanced mobile phones, or 3G phones, later this year, while a fourth licence has yet to be awarded by ComReg.

Given the extensive cost of building up a network and the dominance of the existing players, it is unlikely that a new entrant will take up the new 3G licence. Eircom has expressed an interest in returning to the mobile sector, but cannot do so until May when a three-year non-compete clause with Vodafone negotiated when Eircom sold its mobile arm to Vodafone ends.

"The only operator to benefit from this and bring competition to the market is Meteor. National Roaming is of no benefit to Eircom as it has no licence and no network, so there is only us," Mr Kelly added.