The Competition Authority has warned that a proposal to enable telecoms firms to buy and sell radio spectrums could weaken competition in the Irish market.

The proposal, which is under consideration by ComReg, the telecoms regulator, would enable firms to trade excess radio spectrums that they do not need to provide a service to users.

The telecoms regulator in Britain, Ofcom, is also considering introducing spectrum trading to ensure that it is used efficiently.

However, a submission by the Competition Authority to ComReg shows it is concerned that the system could enable incumbent operators with market power to hoard spectrums.

This would enable these firms to prevent the entry of new entrants to a market to boost competition.

The submission says ComReg should consider including "use it" or "lose it clauses" to discourage this type of spectrum hoarding by firms with significant market power.

Capping the amount of spectrum that an operator can hold is something that should be considered, it says.