Revenues at O2 Ireland fell 4.9 per cent for the three months to June despite a 25,000 increase in customers.
The company attributed the revenue reduction to €225 million for the period to the impact of cheaper pricing plans. At the end of June the company said it had 1.688 million customers.
The average revenue per user also declined over the period, dropping to €43.2 from €43.4 although the average number of minutes customers spent talking on their phones rose 0.3 per cent 250 minutes compared to the same quarter in 2007.
Between April and June 540 million text messages were sent, an increase of one third on the same period last year.
Paul Whelan, chief financial officer with O2 Ireland said the company was performing well in a "highly competitive market and difficult economic landscape"
The company had 60,000 broadband customers in June, he said, adding the launch of iPhone had resulted in non-SMS data revenues increasing. O2 is part of Telefónica SA, one of the world's largest telecommunications firms.