Dáil Éireann Debate, Wednesday - 12 May 2004
68 Ms Burton asked the Minister for Communications, Marine and Natural Resources the position with regard to encouraging competition in the mobile phone market here; if he has any plans to request ComReg to implement new policies calling for lower prices for mobile and fixed line telephone bills; and if he will make a statement on the matter. [13681/04]
View answerComReg, the Commission for Communications Regulation, has as one of its key objectives under the Communications Regulation Act 2002 the promotion of competition in the exercise of its functions.
As Minister for Communications, Marine and Natural Resources, I have responsibility for overall telecoms policy, and my main goal in implementing this policy has been the creation of conditions for sustainable growth and competition that will benefit the economic and social development of Ireland by providing competitive services.
One of the tools available to me to achieve this goal, under the powers given to me by section 13 of the Communications Regulation Act 2002, is to issue policy directions to ComReg to be followed by it in the exercise of its functions.
As the Deputy may be aware, I recently issued policy directions to ComReg, focusing on competition generally, wholesale and retail telephone line rental, interconnection-leased lines, national and cross-border roaming and broadband. Obviously, these directions are issued in the context of the new EU regulatory framework.
The direction on competition mandates ComReg to focus on competition as a key objective, with a particular focus on competition in the fixed and mobile markets, and to implement, where necessary, remedies which counteract or remove barriers to entry and support entry by new players to the market, and entry into new sectors by existing players; and to have particular regard to the following: market share of new entrants; ensuring that the applicable margin attributable to a product at the wholesale level is sufficient to promote and sustain competition; price level to the end user; and the potential of alternative technology delivery platforms to support competition.
Another policy direction addressed national and cross-border roaming. The ability to roam nationally on GSM networks would ensure that all three licensed GSM operators could provide countrywide coverage. Minimising cross-Border roaming costs on the island of Ireland would be beneficial for Irish mobile phone users, particularly those who live close to the Border. I have therefore directed ComReg to examine using its powers to mandate national roaming on existing GSM networks of mobile network operators with significant market power on fair commercial terms; work closely with operators and Ofcom, the Regulator for Northern Ireland, to encourage and support initiatives that would reduce or eliminate cross-border roaming charges, and encourage national call charging on an all-island basis.
Recognising the importance of a single billing product to advancing competition in the fixed line telephone market, I directed ComReg to introduce a wholesale line rental product for voice and data services that was accessible, affordable and with sufficient margin for telecommunications operators to enable them to stimulate and drive competition in this market by 31 March 2004, and which I am delighted to say has been introduced.
ComReg will work with the industry to ensure the smooth introduction of this product and use whatever regulatory interventions are appropriate to address any delays or difficulties which may arise. I understand operators are currently testing the product and that it will be a few months before single billing will actually come on-stream. This will allow operators, other than Eircom, to offer customers both line rental and call charges on a single bill. The policy directions are available to read on my Department's website at www.dcmnr.ie.
My message is simple. The more competitive telecoms services that are on offer, the better in the long run for consumers, the sector and the economy as a whole.
