Dáil Éireann Debate, Tuesday - 29 June 2004
1 Mr. Coveney asked the Minister for Communications, Marine and Natural Resources if he has satisfied himself that ComReg has sufficient powers to address recent overcharging problems in the mobile phone industry; and if he intends to meet the regulator to discuss this issue. [19619/04]
Amharc ar fhreagraThe Commission for Communications Regulation, ComReg, is responsible for monitoring compliance by service providers with the requirements of the European Communities (Electronic Communications Networks and Services) (Universal Service and Users' Rights) Regulations 3003, which are transposed as SI 308 of 2003. In accordance with the regulations and following public consultation, ComReg has issued a draft direction on the code of practice for tariff presentation. Comments on the draft have been sought by 30 June, shortly after which date ComReg intends to finalise the direction. The core objective of the code is to ensure that end users have access to accurate and comprehensive tariff information on publicly available telephone services. Service providers shall ensure that tariff information is accurate, comprehensive and accessible.
ComReg has sought a comprehensive report from each of the mobile phone companies concerning the incidences of overcharging. Following consideration of both reports, it will decide on the appropriate action, within its powers, that it will take.
ComReg is also considering further initiatives to provide information to consumers on the range of communication services. These steps will ensure that consumers are sufficiently informed to make the appropriate choices in terms of the service or package which will best suit their needs.
Is the Minister aware of the extent and significance of overcharging in recent months? Vodafone admitted to overcharging up to 22,000 customers who were roaming between 25 May and 15 June to a value of almost €150,000 and a week earlier O2 admitted to overcharging approximately 70,000 customers. Both incidences of overcharging of roaming customers mean that in recent months Irish mobile phone users and customers have been overcharged to the tune of approximately €650,000.
What is at issue is not whether these people have been repaid or their accounts reimbursed but the fact that almost 100,000 people were overcharged for roaming. That is unacceptable. ComReg recognised this and demanded a report from O2 by 25 June, four days ago. Has either the Minister or ComReg seen that report? If so, what is happening with it and will it be published?
I agree that overcharging is unacceptable. The two companies involved admitted voluntarily to the overcharging. The enforcement of the regulations is a matter for ComReg under the legislation passed by the Dáil. The regulations allow the regulator to apply for a High Court order compelling compliance in cases where companies are unwilling to comply. ComReg may also apply to the court for the imposition of a financial penalty on the companies. The court must, obviously, consider the circumstances of the non-compliance.
I have not seen any report. ComReg is the authority responsible for the implementation of the regulations and legislation. If it has received the report, it will make decisions on foot of that report and the circumstances in each case.
Does the Minister agree that the essence of the problem is that Vodafone and O2 came forward voluntarily on the overcharging issue? The regulator should have recognised that overcharging was occurring. If both companies had not come forward voluntarily, would ComReg have been aware of the overcharging to the value of approximately €750,000? Is the Minister satisfied that ComReg has sufficient powers to identify, monitor and regulate the issue of overcharging and to penalise the companies involved?
As the Deputy may be aware, I issued ComReg with a policy direction to drive competition in this area, to address specifically the issue of high cross-Border tariffs and to allow smaller mobile operators to have access to the existing mobile network. This will be the ultimate in driving competition. As the Deputy will be aware, a consultation process, driven by ComReg, is taking place in this respect.
In all my meetings with ComReg I ask its officials whether they require more legislative powers to drive competition in this and the wider telecommunications area, and any time that they have asked for additional powers they have been granted. When ComReg implements the policy direction I have given it in this area, I expect there will be a significant level of competition and I hope it will lead to new operators entering the mobile sector because that is what we need.
