O2 defends mobile phone costs

Peter Erskine, chief executive of O2 Ireland's parent company, MmO2, has refuted claims Irish mobile phone prices are a "rip off".

Mr Erskine has also warned the Commission for Communication Regulation (ComReg) against "over-regulating" the mobile phone industry.

O2 Ireland management will appear before the Oireachtas Communications committee next week to defend allegations that it is generating excessive profits from its Irish customers.

Mr Erskine said O2 Ireland's users spent more on mobile services than customers of its other divisions because they use their mobiles up to 70% more than the British and Germans.

According to ComReg, Irish mobile firms generated more average revenue per user - €46 per month - than in every other EU state.

Etain Doyle, chair of ComReg, maintains that Vodafone and O2, who control 95% of the market, charged more in Ireland because of a lack of competition.