Consumers can expect more competitive telecom tariffs in the future as fixed line operators fight for business with mobile, satellite and cable companies.
A study by KBC Asset Management (KBCAM) says Irish call charges are already low by international standards but are likely to drop still further.
"In reviewing telecom stocks for investment purposes, we have found that Ireland (along with the United States) has one of the lowest pricing differentials between fixed line and mobile," said Mr Noel O'Halloran, chief investment officer with KBCAM. "Therefore substitution of mobile for fixed line is highest."
With fixed line rental costing nearly €20 a month and the monthly charge on a mobile running from €15 depending on the package, many young people setting up home do not bother with a fixed line at all, he says.
"As a consequence of the move from fixed line to mobile, fixed-line companies must find new sources of revenue and quickly," Mr O'Halloran argues.
"That is one of the reasons they are in such a hurry to supply broadband" which was essential for both the financial services and IT industries on which Ireland was highly dependent.
However, competition on broadband provision from satellite and cable television companies should quickly exert downward pressure on prices, such as in Britain, where a range of competitive packages is on offer including flat-rate access, he argues.
