The chief operating officer of Vodafone Group unleashed a scathing attack on the communications regulator (ComReg) yesterday accusing it of forcing "badly thought-through regulation" on the telecoms market.
Mr Julian Horn-Smith, second in command at the world's biggest mobile phone company, also said that Vodafone Ireland would appeal any ComReg ruling to regulate the Irish mobile market to the European Commission.
His comments, which are carried in an interview today with The Irish Times, come as ComReg seeks to open Vodafone and O2's mobile phone networks to competition in the Republic.
In an initial decision earlier this week ComReg found the market for mobile services in Ireland has one of the highest concentrations in the Europe. It also ruled there was little evidence that Irish users spend more on mobile services than other Europeans because they talked more.
ComReg is proposing to open the dominant mobile networks, Vodafone and O2, to competition by enabling virtual operators to piggyback on their networks.
The ruling by ComReg on "joint dominance" is one of the first made by a national regulator in the mobile market in the EU. It will probably need approval from the European Commission.
Mr Horn-Smith, who plays a key role in devising Vodafone Group strategy across its 28 operations, said a decision to impose regulation on the mobile market would "no doubt be popular but it would be highly destructive".
"The fact that people spend more because they speak more is not a reason to regulate," he said. "Capricious or populist regulation can be destructive because it can discourage investment."
Mr Horn-Smith said that Vodafone would appeal to the Commission if ComReg decided to impose regulation."Look at the mess that happened to the fixed-wire business as a result of over-ambitious, over-enthusiastic regulation. It has been a mistake. I'm sure it is done with good intent... but it is wrong and it has been very destructive."
Mr Horn-Smith rejected the assertion that Vodafone was "ripping off" Irish consumers, who on average pay €582 per year in bills - more than any other Vodafone subscribers outside Japan. He "hadn't the foggiest idea where ComReg got its numbers for its review of the mobile market", but his numbers showed Vodafone prices were middle of the pack.
"I'm not making it up, it is an auditable fact, it is not hearsay or gossip... there are other networks offering other services, some of which are less expensive, but I would argue not as good."
ComReg is due to make a final decision on its proposal to open Vodafone and O2's mobile networks to competition following a public consultation which ends in early March. Vodafone's opposition will pit ComReg against one of Europe's biggest and best resourced companies. MMO2, the parent of O2 Ireland, is also likely to oppose the new regulation.
