Dáil debates

Thursday, 29 May 2008

4:00 pm

Photo of Dinny McGinleyDinny McGinley (Donegal South West, Fine Gael)
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Question 6: To ask the Minister for Communications, Energy and Natural Resources if he plans to issue policy directions to ComReg to reduce high mobile termination charges here; and if he will make a statement on the matter. [21482/08]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I have no plans to issue a policy direction to the Commission for Communications Regulation, ComReg, on mobile termination charges.

The regulation of telecommunications operators, including regulatory issues surrounding telephony charges, is the statutory responsibility of ComReg in accordance with the requirements of the Communications Regulation Act 2002 and the regulations transposing the EU regulatory framework for electronic communications networks and services.

As Minister for Communications, Energy and Natural Resources, I have responsibility for overall telecoms policy. My main goal in this policy is to create conditions for sustainable growth and competition that will benefit the economic and social development of Ireland and facilitate competitive services.

It is my belief that improving the market conditions to enhance competition is the best way to drive down mobile telephone charges to the end user. The more competitive telecoms services that are on offer, the better in the long run for consumers, the sector and the economy.

The European Commission has signalled an intention to review mobile termination rates, MTRs, this year. Commissioner Reding has proposed to launch a public consultation, working with the European Regulators Group, ERG, on the harmonisation of MTRs within the EU for all calls. My Department and ComReg will be actively working with the EU Commission and ERG on this recommendation.

The EU Commission is also preparing a communication to the European Parliament and the Council on the review of the functioning of the roaming regulation and its possible extension to cover SMS and data roaming, which is due before the end of 2008. Commissioner Reding has given the mobile industry until 1 July 2008 to cut the price for sending a text message or surfing the web on a laptop when roaming in the EU. Commissioner Reding has raised the prospect of setting caps on text messages and international data services if her calls to cut costs are not answered.

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
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I am disappointed that the Minister will not use his influence to change the policy. I accept that ComReg may fear a legal challenge. Nevertheless, the Minister is the man in charge. We are talking about a potential 20% reduction in charges to the retailer. The Minister has a responsibility to act on this matter, rather than wait for the EU to take action.

The Minister referred to roaming charges. Without crossing the political border, a mobile telephone user can incur roaming charges. If one drives between Greencastle and Muff in east Inishowen, one will receive a text message welcoming one to the United Kingdom. Some years ago, the O2 network introduced a zero roaming charge for the whole of Ireland. However, this only applies to users going from one O2 network to another. Customers who, when near the Border, do not re-set their telephones to O2 find themselves in the Orange or Vodafone network and liable to roaming charges. Does the Minister have plans to get rid of roaming charges for cross-Border users if we are to comply with the legal requirements of the Good Friday Agreement?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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One does not always need to issue policy directions to give one's views. There are three policy requirements in the development of our mobile networks. One needs an environment which helps companies invest. One needs innovation and services which facilitate the development of new innovative digital services that help the people. Deputy McHugh is right that we need services that are cheap, available everywhere and of higher speeds in the data end. We must push those requirements and make sure that our regulator and the industry are providing a proper service.

Commissioner Reding's proposals are not insignificant. It is right to work with the Commission as it goes to the European framework. Commissioner Reding's proposals are radical, particularly in the area of data roaming, where there is a real issue as we move towards mobile broadband services. I support the radical reduction regarding data services, which she is now talking about.

In opening our mobile networks to new data digital applications, we can make a commercial case for such networks. They will benefit in the long run. Those companies which are ahead of the game in providing digital services and mobile data networks will have a real commercial advantage and will make profits from the services they deliver to the customer.

This is a risky business for those companies. They have been engaged in what has been a profitable voice mobile business, particularly when it involves roaming. We must change the nature of that business. We need to make it more innovative which, in particular, means bringing data costs down. At the same time, we must be aware of the companies' needs to have an investment environment that facilitates the development of those innovations. It is a complex and crucial area at the centre of our telecommunications market.