The number of mobile phone subscribers in the Republic currently stands at around 365,000-370,000, of which Digifone has about 45,000. Digifone which was launched last March, is currently Eircell's only rival. Mr Brewer admits that the company took around 5,000 customers from Eircell. "When people say they are leaving our network we ask them why," he says. "Around 5,000 said they were leaving to go to Digifone."
Eircell and Digifone will also be allowed to operate licences on this frequency when the new telecoms regulator decides there is sufficient competition in the market.
Mr Stephen Brewer: Falling telephone costs and advances in handset technology will facilitate a mobile phone in every home by the turn of the century. Photograph: Eric Luke
ONE million mobile phone users by the year 2000. Every home to have a mobile phone for use on a fixed or mobile telephone line. That's the confident prediction of Eircell chief executive Stephen Brewer who says falling telephone costs and advances in handset technology will turn such a scenario into a reality.
Mr Brewer, who spearheads the State mobile phone operator's drive for market share, says that by the end of this year alone, the number of mobile phone users in Ireland could hit 500,000. "If we both (Eircell and Digifone) succeed, the number could even exceed 500,000 subscribers," he says.
The number of mobile phone subscribers in the Republic currently stands at around 365,000-370,000, of which Digifone has about 45,000. Digifone which was launched last March, is currently Eircell's only rival. Mr Brewer admits that the company took around 5,000 customers from Eircell. "When people say they are leaving our network we ask them why," he says. "Around 5,000 said they were leaving to go to Digifone."
Mr Brewer says Eircell has cut off 20,000 subscribers since Christmas for not paying their bills. "A customer is someone who pays," he says.
Business had slowed in recent months. Eircell had "taken its foot off the pedal" when Digifone was launched, to see what their rival would do. Mr Brewer says the market was not "excited". It was left to Eircell as the incumbent to drive the market again, he claims.
Market growth has returned, he says, and Digifone is no longer taking Eircell customers. Last month, business returned to its Christmas levels and 20,000 new subscribers joined Eircell. The company introduced a free phone, free connection offer to which Mr Brewer attributes the growth in sales. About half of the customers opted for the analogue or 088 service.
There has been some criticism of Eircell's tactic to push the analogue market, when the industry is agreed that GSM or digital is where the market is heading.
Mr Brewer makes no apologies. It has better coverage - almost 95 per cent of the country, compared to 90 per cent for GSM - and the reception is excellent, he says. It offers a wide coverage on an inexpensive phone, he says.
Mr Brewer says the free analogue phone promotion also introduces people to the concept of mobile phones, people who will eventually become GSM users. However, others say it is a tactic which Eircell may be using because its GSM system cannot cope with the number of customers coming onto the digital network.
Mr Brewer rejects this. "We could add another 50 per cent of our customers to the Dublin area alone and we would not have a capacity problem."
Rather, he says, it is a problem of coverage. Eircell is investing £64 million this year in developing the GSM system and hopes to add another 360 base stations which will improve coverage. "We aim to put in one new base station per day for the next year," he says.
Some of these base stations will be what are known as microcells, comprising transmitters which are about the size of a broadsheet newspaper page. He admits there is a problem with dropped or lost calls. He denies, however, that there are a substantial number of such incidents. He says as more base stations are built existing ones need fine tuning and this is where dropped calls can occur.
Eircell is conscious of this and compensates people if they feel that this has occurred. Subscribers can also complain about dropped calls and be compensated.
Digifone has an automatic compensation system. Mr Brewer says Eircell does not yet have an automatic facility for compensating customers.
It is expected that by next March another one or possibly two new mobile phone licences will be awarded. These licences are for systems which are especially suitable for cities. Known as the DCS 1800 they operate on a higher frequency.
Eircell and Digifone will also be allowed to operate licences on this frequency when the new telecoms regulator decides there is sufficient competition in the market.
Mr Brewer believes that some of the British or European operators will seek these licences, the terms and conditions of which have not yet been decided. Those in the industry expect operators such as Orange and One to One, which operate similar licences in Britain, to express an interest. It is also expected that members of other consortia who were unsuccessful in the bidding for the second GSM licence may also apply.
Stephen Brewer says he has doubts about whether the Irish market is big enough for four mobile phone operators, or six, when Eircell and Digifone take up their option for a DCS licence. Each has already stated that it will exercise that option, and avail of the extra capacity offered. Generally, he says, the issue of extra licences should be good for business and for customers with the cost of calls falling.
