Free mobile phone deals have dragged prices down and advancing technology is widening the choice of phones on offer. As Eircell and Esat Digifone battle it out for new business - and the market awaits the licensing of new mobile phone operators - shopping around is more important than ever for consumers who can be overwhelmed by the barrage of deals on offer.

There has been a meteoric rise in mobile phone use since Telecom Eireann introduced them 12 years go. An estimated 410,000 people now use mobile phones. It is believed this will rocket to 1 million as we enter the new millennium.

Eircell, which controls 82 per cent of the overall market - GSM (087) and analogue (088) - predicts that its new "pay-as-you-go" system, which will eradicate monthly bills, will attract an additional 60,000 customers by the end of 1997.

This system will be made available through a disposable card, similar to a scratch card, bought by users. A 13-digit number will be displayed on the cards and users will tap this number into their phone in order to obtain credit for calls.

Esat, which provides a GSM - in its case 086 - service only, has signed up 65,000 customers since its launch seven months ago and controls 31 per cent of this market. Business people make up half of Esat's customer base, while personal use accounts for the remaining 50 per cent. The population coverage for Esat has reached 90 per cent, with 75 per cent geographic coverage.

Esat is awaiting the release of new radio frequencies from the Telecommunications Regulator which will bring GSM coverage to counties Kerry and Donegal, ensuring Esat 95 per cent population coverage.

The choice of mobile phones is greater than ever for the consumer. Free mobile phones are increasingly advertised and outlets are reporting a huge demand for such offers.

Some free handsets are being made available through "affinity deals" between the phone dealers and banks, insurers and other companies such as the Automobile Association. However, the majority are offered by mobile phone suppliers in conjunction with either Eircell or Esat.

Users face monthly line rentals and call charges, and in some cases it may be more beneficial to buy a phone which comes with three months free line rental and a percentage of free calls. It is best to calculate your monthly bill, before being enticed by the allure of a free phone.

Consumers should also be aware of unscrupulous dealers offering refurbished phones manufactured in Taiwan and other places. These may not always be compatible with the phone networks here.

The price of phones is constantly changing and buyers who have opted for a particular model should shop around to ensure they are not missing out on a special offer. A phone costing £60 with Eircell may be free with Esat and vice versa.

The GSM system (086 and 087 numbers) now has 60 million subscribers worldwide and has 82 roaming agreements with international operators, ensuring coverage for customers in 51 countries.

In contrast to the analogue network (088 numbers), GSM is encrypted and therefore protected from eavesdroppers. Data transmission via GSM is also far more effective.

The analogue frequency is set to be phased out in 2005 under a European directive, requiring analogue companies to switch their customers to GSM. Analogue is arguably still a more robust system and provides coverage for 97 per cent of the Irish population.

However, new customers are advised to opt for the GSM network, which can offer more attractive packages.

Mr Crionan Faughnan, of Person to Person, says the majority of people are influenced by the look of a phone but emphasises the importance of calculating the yearly cost when making a purchase.

"Esat has offered an alternative, but it's remarkably similar to what was there in the first place. In reality, people are trying to differentiate between Eircell and Esat, but to be honest it is like Esso and Shell - it is all the same at the end of the day," said Mr Faughnan.

Mobile phone prices fall into three approximate brackets: Lowtier (free to £60); midtier (£60 to £300); and high-tier (£300 plus).