Hutchison 3G appeals ComReg price ruling

Hutchison 3G Ireland, the State's fourth mobile phone operator, has appealed a ruling by the telecoms regulator to impose strict price controls on the company before its official launch in the Republic.

The firm has asked the Government to overturn the ruling by the Commission for Communications Regulation (ComReg) in the first appeal made under new rules setting up an appeals panel.

Until now telecoms companies have only be able to appeal ComReg's decisions to the courts, a process which has resulted in lengthy delays to several regulatory decisions.

Last year Eircom appealed ComReg's decision on the price at which other firms could access its network to the courts. Eircom later settled the case with ComReg but not before a significant delay to the whole process.

It is hoped the new appeals panel will provide a fast track dispute resolution process that will persuade firms not to take legal action against ComReg decisions.

The Minister for Communications, Mr Dermot Ahern, is scheduled to formally set up the first Communications Appeals Panel later this month to hear the case.

The panel will consist of four suitably qualified people from technical, financial or legal backgrounds and will be supported by a team of private consultants.

However, only three of the four appeals panel members are expected to hear a single appeal. The Government plans to extend this appeals system to other sectors which are governed by regulations, if it proves successful.

The Government published a tender to appoint suitably qualified consultants to advise the panel last week.

Hutchison 3G Ireland, which plans to launch a commercial third generation mobile service later this year or early next year, confirmed it had made the appeal yesterday. But a spokesman refused to give further details.

It is understood that the firm is appealing a proposal by ComReg to designate Hutchison with significant market power in the market for mobile termination rates - the fees that mobile firms charge other operators for terminating calls on their networks.

In June, ComReg said it planned to designate all four mobile operators with significant market power, a ruling that would enable it to impose strict controls on termination rates.

Until now, the mobile phone industry in the Republic has not been subject to a price cap, although Eircom continues to be subject to strict price controls.

By making an appeal to the communications appeals panel, Hutchison could delay the imposition of the proposed controls for some time. If it fails in its attempt to overturn ComReg's decision, Hutchison could potentially appeal the decision to the courts.

ComReg initially opposed the Government's proposal to set up an appeals panel arguing that it would "create legal uncertainty, and risk overlap and contradiction between the board and decisions by the High Court."