Tommy Broughan (Dublin North East, Labour)

Do the report by ComReg, Market Analysis — Wholesale Access and Call Origination on Public Mobile Telephony Networks, and the initial 3G prices we have seen not again show that the mobile phone market, particularly for Vodafone and O2 is a licence to print money? Members of the Oireachtas Joint Committee on Communications, Marine and Natural Resources found the report shocking. The two main operators have 94% of the market in Ireland. We are the only country where the two leading operators seem to have a co-ordinated strategy. This contrasts with the UK where the top two operators have only 50% of the market. Even in countries like Austria and Finland the third and subsequent operators have at least 25% of the market.

For two or three years representatives from Vodafone and O2 appeared before the committee and told us a pack of blarney on the matter. They claimed our mobile phone costs were very high because we love to talk, which we do. However, even on that score, based on the ComReg analysis, while Ireland does not have the highest amount of talk time, we have by far the highest average revenue per user. These two giants, particularly Vodafone, have taken advantage of us right, left and centre. Our revenue per minute is among the highest in Europe.

The most damning point in the report regarding the Vodafone companies is that while German media commentators and parliamentarians feel the margins there represent a licence to print money, margins here are far higher and the same is true for comparison with O2 in other markets. Does the Minister not agree we have been ripped off by these large powerful companies? While I admit they did well in rolling out the networks and supplying us with mobile phones, in reality we have had to pay through the nose for it. Is it not time we ensured that the decision of ComReg and of the committee was implemented? We need to get mobile virtual network operators on-line as soon as possible. In countries like Britain, Denmark and Finland, where this has happened real competition has emerged. Is it not time for the Minister to issue some policy directives on the matter?

Changing mobile providers is very difficult. For example, Vodafone has approximately nine different tariff options, including Vodafone Social Life, Vodafone Work & Leisure, Vodafone More to Say, Vodafone Light, Vodafone Extra, Vodafone Active, Vodafone Business 75 etc. I could outline the same number of options for O2. Given that virtually all of us have mobile phones, is it not time the Minister took an initiative to stop these companies taking advantage of us in this way to ensure we get real competition. This may necessitate the Minister introducing legislation to give ComReg much stronger powers given the market dominance of the big two. From this damning report, considered by the Oireachtas Joint Committee on Communications, Marine and Natural Resources under the chairmanship of Deputy O'Flynn, it is clear they are co-ordinating their policy to effectively rip us off.

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