Vol. 530 No. 3
95 Mr. Durkan asked the Minister for Public Enterprise the total number of operators now involved in the provision of telephone service with particular reference to land lines; the extent to which the customer has received benefit in terms of reduced cost; and if she will make a statement on the matter. [3955/01]
96 Mr. Durkan asked the Minister for Public Enterprise the total number of operators currently involved in the provision of mobile phone service; if the issue of further licences is contemplated in this area; if regard is being had for the need to ensure benefit to the consumer arising from increased competition; and if she will make a statement on the matter. [3956/01]
I propose to take Questions Nos. 95 and 96 together.
The licensing of fixed and mobile telephony is a matter for the Office of the Director of Telecommunications Regulation. According to a report published by the director in December 2000 there are now in excess of 70 operators licensed to provide services in the telecommunications sector, including three mobile network operators. Of these there are currently 46 active operators. The report estimates that new entrants' share of the fixed line market is in excess of 17%. The full automation of carrier pre-selection – CPS – since April 2000 has facilitated this competition, with over 120,000 business and residential subscriber lines using CPS in early autumn 2000. Eleven operators are now providing a mix of fixed line services including local, long distance and international calls to retail customers.
With regard to mobile services there are currently two licensed operators Eircell and Esat Digifone providing services. The third licensed operator, Meteor, is due to commence the provision of services on 22 February. The total number of mobile subscribers was more than two million, reaching 54% of the total population before Christmas and with reports of an estimated 400,000 mobile phones purchased in Ireland in the run up to Christmas, penetration may exceed 60%.
According to the ODTR prices for telecoms services have fallen dramatically over the past few years, but not by more than those of the leading OECD countries, with the exception of leased lines where competition and regulatory action is showing a distinct improvement in Ireland's relative position.
A recent survey commissioned by the ODTR reveals that the SME sector believes the telecommunications market is more competitive and that as a result of that competition the overall cost of telecommunications has decreased. When asked if they believed the telecommunications market was more competitive than 12 months ago, 95% either agreed or agreed strongly. When asked if the overall cost of telecommunications has decreased in the last 12 months 85% either agreed or agreed strongly.
As regards further mobile licences a competition for the award of the third generation mobile licences is expected to be launched by the ODTR in the near future.
