The European Commission is conducting an investigation into the retention of "possibly excessive profits" by Telecom Eireann on calls from fixed phones to mobile phones.
The investigation is part of an EU wide inquiry into high mobile communication prices in all member states. The commission, following preliminary inquiries, concluded that at least 14 cases warrant in-depth investigation "given preliminary indications of possibly excessive or discriminatory prices".
Telecom Eireann is one of eight public switched telecommunication network operators the commission is concerned about in relation to excessive charges for calls from fixed to mobile telephones. The commission is also concerned about four cases of possibly excessive mobile to fixed phone termination charges, and two cases of possibly excessive termination fees charged by mobile operators. Termination fees are those charged by the operator which handles receipt of a call.
A spokeswoman for Telecom Eireann said she was surprised by the commission's finding as a survey carried out by the independent European consultancy, Tarifica, had found the company charged the third lowest fee for residential daytime fixed to mobile charges in the EU.
Telecom charges 28p per minute, compared to as much as 62p, 55p and 42p charged by companies in Italy, Germany and Sweden. "Despite our position as the third lowest in Europe, Telecom Eireann expects its current rate to be reduced further," she said. She said the company recognised the rates charged for fixed to mobile calls was an issue in Europe. A daytime fixed phone to fixed phone local call costs 11.5p for the first three minutes.
The commission launched its inquiry into interconnection charges between fixed and mobile operators in January, "due to growing concern about persistently high prices for mobile communications, particularly for fixed to mobile calls," the commission said in a statement.
In relation to the possible retention of excessive fees by fixed telephone operators, the commission believes that where the incumbent fixed network operator is also active on the mobile market, this operator could offset reductions in mobile termination rates by increasing its retention on fixed-to-mobile calls.
"In eight cases, this retention appears to be largely in excess of a best practice established by the commission for this inquiry, which might indicate excessive profits." As well as Telecom Eireann, Gelgacom, BT, P&T Austria, Telefonica, KPN Telecom (Netherlands), Telecom Italia and Deutsche Telekom are considered to have a case to answer in this regard.
