Vodafone plans 13% cut in cost of fixed-line calls to mobiles

The cost of making a fixed line telephone call to a mobile subscriber on the Vodafone network at peak times during the day will fall by 13 per cent from June 1st, writes Jamie Smyth, Technology Reporter.

Vodafone said yesterday the price cut would ensure the cost of calls from an Eircom line to its network would be cheaper than those of any other mobile firm.

Under its price plan Vodafone will reduce the amount it charges all telecoms operators to terminate calls on its network from 14.9 cents per minute during the day at peak times to 12.9 cents.

Vodafone - which has more than 1.6 million mobile phone subscribers - said Eircom had already agreed to pass the full benefit of the price cut on to its customers.

Other telecoms operators such as Esat BT, MCI (formerly known as WorldCom), Energis, O2 Ireland and Meteor can also pass on the reductions to consumers if they choose to do so.

But the termination rates charged by Vodafone at off peak times and at the weekend will not change under the new plan and remain at per minute fees of 11.43 cents and 8.89 cents respectively.

In comparison, O2 Ireland charges per minute termination rates of 14.5 cents at peak times, 10.8 cents at off peak times and 8.8 cents during the weekend.

The price cut by Vodafone comes at a time when the Commission for Communications Regulation (ComReg) is scrutinising mobile operators' tariffs.

ComReg is also analysing the accounting practices of O2 Ireland and Vodafone to determine whether the firm is charging too much for mobile phone calls.

The two biggest mobile firms have a combined market share of 96 per cent and both made huge profits last year.

Both operators have also disclosed that their Irish consumers spend more on mobile services than consumers in virtually every European state.

A separate study by ComReg recently found the Republic is the 12th most expensive mobile market out of 15 European states for medium to high mobile usage.

A Vodafone spokeswoman said yesterday the termination rates charged in the Republic are among the lowest in Europe.