Qualcomm Inc (QCOM)

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Consumers want more choice, says Three
Monday, June 27 2005
by Deirdre McArdle
in association with

http://www.enn.ie/frontpage/news-9615556.html

Commissioned by Three Ireland, which is expected to launch in the Irish mobile phone market next month, the survey reveals that consumers are unhappy with the state of play in the market and would like to see increased competition.



Eighty-seven percent of respondents to the survey said they would welcome a new mobile services provider to the market in the hope that a new entrant would ignite competition. A further 80 percent said they would welcome more choice in the market and 75 percent believe that more competition would lead to better value for consumers.



Competition within the Irish mobile market has long been a topic of consternation. In December 2004 the communications regulator ComReg proposed the introduction of mobile virtual network operators, MVNOs, into the Irish market in a bid to shake things up a bit. MVNOs would effectively "piggy-back" on the network of established mobile operators. These virtual operators would then be able to offer alternative services, potentially resulting in better deals for consumers.



Both Vodafone and O2, who challenged ComReg's decision, have claimed that competition is increasing in the market with Meteor making more of an impact in recent months. Meteor, the third mobile operator in the market currently controls about 10 percent of the market.



But this perceived competition isn't registering too highly with consumers with just 39 percent of respondents to the Three Ireland survey saying they are currently getting value for money from their mobile network. In order to save money 58 percent of respondents try to substitute voice calls with text messages.



In addition, consumers are frustrated by peak rate charges with over 25 percent of respondents citing this as their main grievance with their providers. Complex pricing structures are also of concern to 65 percent of Irish consumers, according to the survey.



The results of this survey suggest Three Ireland, with its expected cheap calls, could be made welcome into the Irish market by consumers eager for lower call costs and more choice.



"The survey emphatically confirms that mobile phone users in Ireland are crying out for more competition, better value and increased choice in mobile services and clearly would welcome a new network to break up the current cosy market," said Stephen Pilkington, Commercial Director for Three Ireland.



So far though, Three Ireland has remained tight-lipped as to what exactly it's going to offer when it does launch. It is also being secretive as to whether it will target the post-paid or pre-pay market. For now, all that is known is that Three Ireland will launch consumer services in July with its main selling point to be 3G services.



The survey, conducted by Lansdowne Market Research, included over 440 face-to-face interviews in May 2005 among mobile phone users between 21-44 years of age.