Calling time on mobile bill rip-off: 25% cut in store

MOBILE phone bills could fall by 25% after the European Commission yesterday ruled that prices in Ireland were too high.

The EC approved plans by telecoms watchdog, the Commission for Communications Regulation (ComReg), to force Vodafone and O2 to open up their networks to other firms in a bid to lower prices.

ComReg says charges in Ireland are 35% more expensive than the European average. The average monthly mobile bill for Irish consumers is €47, compared to €31 on the Continent.

EU spokesperson Martin Selmayr said that between them, Vodafone and O2 have up to 97% of the revenue here.

“They have tacitly colluded in maintaining their market share and preventing prices from dropping.”

Under ComReg proposals, if Vodafone and O2 cannot reach an agreement with another company seeking access to the network, the regulator can force them to agree terms. ComReg believes a number of companies want access to the mobile phone networks and that if there was more competition, prices would fall by 25%.

“It’s a very welcome decision,” said Consumers’ Association chief executive Dermott Jewell last night. “We are the second-highest user of mobile phones in the world, yet we only have two providers who between them own more than 90% of the market. This ruling means there will be more choices for the consumer.”

However, Vodafone and O2 said they would challenge the ruling. They denied customers were being ripped off, claiming bills were more expensive because we spend longer on our phones. But that was rejected by ComReg. Its figures show that in France, where consumers spend longer on their phones, prices are lower. An 02 spokeswoman said customers were not getting a bad deal and said it would fight the findings.

“O2 Ireland believes that ComReg’s decision and proposed remedy of forcing O2 to open our network to service providers is bad news for consumers as it will undermine competition in the market, and will likely force operators to reconsider future investment decisions.”

Vodafone strategy director Gerry Fahy said: “We are disappointed the commission has not taken the opportunity it has to examine more closely ComReg’s inadequate analysis and flawed conclusions.”

Competition is just a few months away. Hong Kong’s Hutchison Whampoa will launch in Ireland later this year and other companies are also sizing up the market, including Eircom.

Labour communications spokesman Tommy Broughan said the “absolute stitch-up” of the market was at an end.