The 'cosy cartel' between Digifone and Eircell/Vodafone is keeping mobile phone charges artificially high and is costing Irish businesses millions of pounds every year, according to an industry expert.
Mr Iarla Flynn, chairman of ALTO, the Association of Licensed Telecoms Operators in Ireland, said today that fixed line operators are currently paying in excess of £250 million per annum for calls terminating on mobile networks.
He estimates that as much as £125 million could be wiped off the telephone costs of Irish business if mobile operators were forced to reduce their wholesale charges to more realistic levels, for example to the 5p a minute rate they charge their own retail customers.
As an increasing amount of businesses are dependent on mobile phones, the cost to Irish business is enormous, he said.
"Look at any telephone bill and you will see the huge differential between the cost of phone calls from fixed-line telephones to other fixed-lines, and from a fixed line to a mobile phone. There is no justification for these exorbitant charges," he said.
He said the lack of competition in the mobile marketplace means that there is no incentive for Digifone or Eircell/Vodafone to introduce competitive pricing for fixed line operators buying airtime from mobile operators.
Mr Flynn expressed concern that the Communications (Regulation) Bill has not been included in the Government¹s Legislative Programme for the Autumn.
He said that it is not fair to consumers, to the telecoms regulator or to the industry that the Bill should have fallen into limbo.