O2 chief wants curb on ComReg

The chief executive of O2 Ireland, the State's second biggest mobile firm, asked the incoming Minister for Communications yesterday to intervene to prevent over-regulation of the industry, writes Jamie Smyth, Technology Reporter.

Speaking to the Association of Certified Chartered Accountants, Ms Danuta Gray said duplication and over-regulation of the telecoms sector was increasingly affecting O2's and other businesses investment decisions.

"In the current environment of over-regulation, investment decisions will have to be taken not just on the basis of what is right for our customers and our shareholders, but in terms of second guessing what each of the regulatory authorities will take issue with," said Ms Gray, who is vigorously opposing a recent move by the Commission for Communications Regulation (ComReg) to regulate O2's wholesale prices.

ComReg is trying to extend its regulatory role in the mobile sector to include termination rates - the fees that mobile firms charge other operators to terminate calls. It is also seeking to provide access to dominant mobile firms' networks for rivals.

This year ComReg issued two papers on the mobile sector, proposing to extend its powers in these areas, provoking outrage from the existing operators. Hutchison 3G Ireland, the State's fourth mobile phone operator, has already appealed one of these proposals to the Government.

Speaking to The Irish Times yesterday after her speech, Ms Gray said forcing access to mobile networks would fundamentally affect the firm's ability to invest in future services.

She also called on the incoming Minister for Communications, Mr Dempsey, to implement a recent recommendation by IBEC to create a body to oversee effective and efficient regulation that would only occur when intervention was needed.

"In a competitive market such as the mobile market, to continue to attract new customers and to keep those it already has, businesses like O2 have to offer greater levels of service, to innovate and offer value for money. To continue to be able to do business in this way and invest for the long-term benefit of the economy requires less, not more, regulation," she added.

ComReg is due to publish final decisions on enabling access to mobile networks and the regulation of termination rates shortly.

The regulator has argued that Irish consumers are paying excessive mobile charges generating excessive profits for the industry.