Mobile firms will not be allowed to increase the fees they charge other operators to terminate calls on their network under a new price cap that will be implemented next month.

The Commission for Communication Regulation, ComReg, said yesterday it was introducing the price cap to protect consumers.

It also pledged to monitor mobile termination rates on an ongoing basis to ensure that the Republic's termination rates are benchmarked against EU standards .

Termination rates are the fees that mobile firms charge other operators to terminate calls on their networks. These termination rates are then passed on to consumers in the form of higher prices.

Over the past few years, mobile firms have tended to reduce the termination fees charged to other operators.

Vodafone said yesterday that it preferred to conduct business in a commercial rather than regulatory environment and that it would review the regulator's decision. ComReg's decision to impose a regulatory price cap on mobile firms is just one of a series of regulations that will be imposed on mobile operators next month.

The regulator is also introducing rules that will force all of the Republic's mobile operators to offer access to their networks in a transparent and non-discriminatory way.

It has imposed additional regulations on the two main operators, Vodafone and O2, which will mean that they must produce separated accounts for the regulator.

The decision by the regulator to impose strict regulations on termination rates is already being opposed by 3, a mobile phone company due to begin operating here shortly.

The other mobile firms could also choose to appeal the decision on termination rates in the future.

ComReg's draft decision is being sent to the European Commission for review.

However, the commission can only comment on the decision. It does not have the power to overturn a draft decision on regulatory remedies.