Vol. 574 No. 1
111 Mr. Coveney asked the Minister for Communications, Marine and Natural Resources if he is satisfied with the level of competition on service provision and charges in the mobile phone industry; and his plans to take measures to increase competition in this marketplace. [26603/03]
The Deputy will be aware that I have recently spoken out on my dissatisfaction at the level of call roaming charges being applied by mobile operators in the State. As a Minister from a Border county, I am aware of the effect of exorbitant mobile call roaming charges on local people and businesses. The issue is not simply one of mobile operators introducing all-island tariffs, although this, in itself, is to be welcomed. The level of such tariffs and the terms and conditions attached also need to be examined to ensure that consumers are getting a fair deal.
Although I am not directly responsible for the regulation of call roaming charges – this area comes under the jurisdiction of the Commission for Communications Regulation – I have asked the commission to bring forward proposals to remedy this situation. This request to the commission was in the context of a general review of the impact of the policy directions I issued to it last February. The purpose of the general review is to ascertain what action may be necessary to further regulate priorities in the sector. In the interim I will keep the situation under review and will continue to encourage mobile operators to address this matter themselves.
The framework regulations, which I signed into law in July this year, mandates the Commission for Communications Regulation to conduct market definition and analysis processes into certain markets identified by the European Commission in a published recommendation. These markets are selected on the basis of containing characteristics which may be such as to justify the imposition of regulatory obligations.
I note that the Commission for Communications Regulation has begun the process of market definition and analysis into two separate segments of the mobile telephony market. I welcome the start of this investigative process and I trust that a positive outcome will ensue.
I thank the Minister for his answer. I intend asking four concise supplementary questions and I hope to get answers to each one. From experience I have learned to ask them at my first opportunity for supplementaries as I might not get a second chance. Does the Minister agree that further increased competition in this marketplace is desirable and that this is the best way of ensuring that we drive prices down and improve services? Does he accept the ComReg figures which state clearly that, although prices have dropped measurably in the past five years, the average retail price per minute in Ireland for mobile phone use is still high by European and international standards? Will the Minister, therefore, help to dispel the myth that the only reason Irish mobile phone users pay so much more than our European counterparts is that Irish people use their phones more? Will he confirm and accept the ComReg figures that the average price per minute is higher here than in many other European countries?
Can the Minister provide a concise answer in respect of whether or not he is planning to introduce a new competitor into the mobile phone marketplace in the future? If he is, when will that competitor be introduced? Does the Minister have plans to provide ComReg with a directive – a practice for which there is precedent – to introduce national roaming to allow Meteor, which has only 5% of the market share, to use the networks of Vodafone and-or O2 while it is rolling out its own? Meteor would then—
I suggest that rather than make a statement—
I am just finalising my question.
The Deputy has asked the Minister four questions. He will not be in a position to answer them as he has only a minute and a half to do so.
Very short answers are needed. Allow me to finish the question.
I would prefer the Deputy to allow the Minister to answer the four questions which have already been asked. He has one and a half minutes to do so.
I would have had my question finished if the Ceann Comhairle had let me.
I will be as concise as I can. I agree that increased competition is needed in the Irish market. I agree with the ComReg figures. It is not up to me to introduce a new competitor. We have an open market which means it is entirely up to the market to provide competition. However, I have had discussions which have made me aware of some interest in the Irish market among other operators. Eircom itself, as a result of the agreement under which it broke away from Eircell, is potentially entitled to return to the mobile telephony market as of May 2004.
The Deputy asked about the provision of a directive to ComReg. I have had quite a number of meetings with ComReg, the most recent of which took place in the last fortnight. It was very comprehensive and included discussion of the issue to which the Deputy referred. In the reply to the Deputy's parliamentary question, I outlined that because of the discussions ComReg and my Department have had, an analysis of the mobile telephony market has commenced. The aim of the analysis is to discover if other measures can be taken to engender competition to reduce prices. I have indicated that my Department and, I hope, the Oireachtas would be willing to sponsor what powers or legislation ComReg feels it needs to achieve those goals.
