Hutchison has warned the communications regulator that its proposal to introduce competition to the mobile market will force it to reconsider its Irish roll-out plans.

The firm, which was awarded the fourth mobile licence last year, has also accused the Commission for Communication Regulation (ComReg) of "fundamentally flawed" market analysis.

Last week ComReg issued a ruling that will force Vodafone and O2 to open their networks for "virtual operators" to enter the market.

This would enable a host of new entrants, such as Tesco and Carphone Warehouse, to enter the market and potentially force down mobile phone prices.

O2 and Vodafone have both strongly criticised the decision and plan to appeal it to the European Commission and the courts.

However, a consultation paper sent to ComReg and seen by The Irish Times shows that the fourth operator is also stridently against the ruling, which it says would "radically alter the competitive landscape in the market to the detriment of Hutchison".

In the paper, Hutchison, which will be branded "3" in the Irish market, says ComReg's proposals will provide a strong disincentive for Hutchison to proceed with its planned roll-out of its mobile service and retail plans.

"The proposed remedies therefore risk defeating the very purposes that they are intending to advance . . . and would result in further delays and setbacks to advancing greater retail competition," concludes the paper.

Hutchison disputes a number of specific points in its communication with the regulator, in particular ComReg's view that the entry of "3" would not change the competitive situation in the short term. It says "3" has a track record of entering markets and providing competition, given its experience of offering services in Asia, Australia and Europe.

The paper, which was prepared for ComReg following the publication of its draft ruling earlier this year, says ComReg has not performed a forward-looking analysis of the market to take account of its entry or Meteor's improved position in the market.

Hutchison's threat to reconsider its roll-out plans could be interpreted as simply a way to pressurise the regulator into watering down its ruling.

But there is a possibility that the firm could try to use the ruling as a way to cut back on very strict roll out requirements in its licence.

Under the terms of its mobile licence Hutchison must roll out a third generation network covering 85 per cent of the Irish population by the end of 2007.

This requirement is far in excess of what ComReg required of the other two mobile operators, Vodafone and O2, and will cost Hutchison hundreds of millions of euro in construction costs.

A spokesman for Hutchison refused to comment yesterday.

In the wake of ComReg's decision last week, O2 also warned that it would consider cutting back on its network investment in the Irish market.