Dermot Ahern Adopts New Measures To Cut Telecom and Mobile Prices

Dublin, Tuesday, 30^th March, 2004

Dermot Ahern TD, Minister for Communications, Marine and Natural Resources has issued new rules to radically increase competition and cut telecoms prices to consumers using mobile phones, broadband and fixed line telephony:

The new measures, published today as policy directions to the Communications Regulator (Comreg), follow consultation with the industry and the public and centre on driving down prices for mobile phone users, broadband and fixed-line telephone users. 

Mobile phone networks

The Minister said: I am mandating Comreg to intensify competition in the mobile phone markets to ensure that mobile phone users get the best value for money.  I am directing Comreg to examine opening up mobile phone networks to other Irish and International companies.  This direction will ensure all mobile phone operators can compete fairly and will drive down mobile phone charges.

The Minister also said he wanted the issue of roaming charges for mobile phone users tackled. It is still unacceptable that mobile phone users have to pay more when operating in Border areas. There should be just one price for the whole country, he said.

Wholesale and Telephone retail

I am also directing Comreg to introduce by March 31^st a wholesale and retail telephone product for voice and data at rates that will drive competition.

This move will have two practical benefits for consumers.  First, it will mean that all telecoms companies will be able to offer a single billing product to consumers.  This should lead to competition and lower prices for consumers. 

Secondly, it will mean that consumers who chose to switch to a new, cheaper telecoms company will only receive a single bill from that company.  At present consumers receive a line rental bill from Eircom, as well as a bill for phone calls from their new company.

Competition

The overall aim of these Policy Directions is to drive competition, cut prices and deliver value for money services to Irish consumers.

The Minister is also issuing a General Policy Direction on competition to ComReg to focus on;

• market share of new entrants;
• ensuring that the applicable margin attributable to a product at the wholesale level is sufficient to promote and sustain competition;
• price level to the end user;
• competition in the fixed and mobile markets;
• the potential of alternative technology delivery platforms to support competition 

A copy of the Policy Directions and the reasons for them, are available on the Departments website at http://www.dcmnr.gov.ie/display.asp?pg=1512

END

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