Vodafone, O2 will have to allow access

Mobile phone network operators Vodafone and O2 are to be compelled to allow competitor companies access to their systems under new rules proposed by the Minister for Communications, Marine and Natural Resources, Mr Dermot Ahern.

The new rules, due to come into effect following a three-week consultation period, are likely to spark strong opposition from the operators.

Mr Ahern is aiming to open up the marketplace through the move, which supports the communications regulator (ComReg) in its views as to what is required in order to introduce price competition in the mobile phone market.

The move indicates Mr Ahern is of the view that strong action is needed in order to introduce price competition in the market in the Republic. The market here is considered to be one of the most profitable in Europe and is all but controlled by the two main players.

The move by Mr Ahern is likely to be of interest to Eircom, which is believed to be considering a return to the mobile phone market, as well as to two or three other mobile phone companies believed to be considering entering the market. It will also be of interest to Meteor, which currently has a small share of the mobile phone market here.

Mr Ahern, in announcing his intended direction to ComReg, ordering it to mandate mobile phone companies to open up their networks, said he believes the new rules will "radically increase competition".

The move "will provide all three licensed mobile phone operators with nationwide coverage, an equal opportunity to compete and drive down mobile phone prices," he said, referring to O2, Vodafone and Meteor.

Mr Ahern also announced that he is directing the regulator to minimise cross-Border roaming and other charges for businesses and consumers living close to the Border. He said extra charges currently put businesses in Border areas at a competitive disadvantage.

In relation to fixed-line competition Mr Ahern is directing the regulator to introduce, by March 31st, single billing for consumers who have switched from Eircom to another telecoms company. At present persons who switch from Eircom receive a line rental bill from Eircom and a bill for phone calls from their new company.

The draft General Policy Directive issued by Mr Ahern specifies clearly that competition is to be the key objective for the regulator. Draft directives are open to input from the industry and the public and Mr Ahern has also asked the regulator to come up with any proposals it considers might help progress the sector. The closing date for submissions is March 1st. A copy of the draft proposals can be viewed at www.dcmnr.ie.