The pricing levels set by telecommunication services providers, including for mobile phone and broadband services, is a matter for those relevant service providers operating in a fully liberalised market regulated by the Commission for Communication Regulation (ComReg). ComReg is statutorily independent in the exercise of its functions in accordance with Section 11 of the 2002 Act and is directly accountable for the performance of its functions to Committees of the Oireachtas in accordance with Section 34(2) of the same Act.
I am aware that a number of providers of broadband, mobile and television services have increased their prices for existing customers recently. The use of price-adjustment clauses by most (but not all) providers of mobile and broadband services has, in recent years, become more common in Ireland. These clauses generally operate by providing for annual automatic price increases during the lifetime of the contract.
In 2015, the European Court of Justice ruled that an increase in telecommunications charges in accordance with a consumer price index (CPI) does not allow subscribers to withdraw from their contract.
My officials are currently assessing the use of these clauses and are engaging with the regulator and other relevant stakeholders. Officials are examining possible options and will be guided by legal advice, but any proposal to legislate to prevent retail providers from offering variable priced contracts – based on the CPI – would require careful consideration.