Heat turned up on mobile firms

COMMUNICATIONS Minister Dermot Ahern turned up the heat on mobile operators Vodafone and O2 yesterday, when he threw his weight behind plans to force them to throw open their networks to competitors.

The minister said he would direct ComReg, which regulates the mobile phone industry in Ireland, to use its powers to allow so-called "national roaming" within weeks. National roaming will benefit Meteor, the smallest operator in the market, by allowing its customers to route calls through the Vodafone or O2 networks when no Meteor signal is available. While Vodafone and O2 enjoy almost universal coverage within Ireland, Meteor's signal does not extend throughout the country, and fails to cover large parts of counties Cork, Kerry, Mayo, Donegal and Wicklow. Vodafone and O2 account for approximately 95% of the Irish mobile market. Meteor's low market share is partly blamed on its inability to provide a service throughout the country.

The move will also pave the way for new entrants to the mobile market by allowing "virtual operators" to provide a mobile service without the hefty expense of building their own network. ComReg issued its own plans to introduce national roaming last month, but the intervention of Mr Ahern will add significant weight to the ComReg initiative. He said the move would "radically increase competition" and provide all three licensed mobile operators with nationwide coverage and equal opportunity to compete and drive down mobile prices. Vodafone chief executive Paul Donovan disputed ComReg's analysis of competition in the market last month and said it was "misguided, flawed and selective."