Vodafone Ireland's average revenue per customer declined despite a rise of 29,000 in the number of subscribers in the third quarter of the year.

Figures released by the company show that it had 2,119,000 subscribers at the end of September.

However the revenue it is generating from its customers has fallen during the past year.

Monthly average revenue per user (ARPU) was €46.90, down from €53.10 for the same period a year ago.

"Despite the trend towards increased voice and text usage, the average blended ARPU for the 12 months ended in September 2006 is 4.9 per cent less than for the 12 months ended in September 2005, reflecting the ever-increasing value provided to its customers by Vodafone," Vodafone Ireland said in a statement.

However, increased competition in the Irish mobile phone market is also having an impact on Vodafone.

"There is definitely increased competition," said Gerry Fahy, strategy director at Vodafone Ireland. "We have seen new players enter the market and there is greater competition for customers at retail level."

Irish mobile phone users consumed on average 225 voice minutes and sent 114 text messages each month in this quarter compared with a Vodafone European average of 137 voice minutes and 59 text messages.

Total voice minutes in the 12 months ending September 2006 increased by 9.8 per cent, from 4.9 billion to 5.4 billion, compared to the 12 months ended September 2005.

More than 68,000 customers have subscribed to the Sky Mobile TV service that was launched in June, the company said.

It also confirmed that it has signed a three-year exclusive agreement with Meteor for the provision of 2G roaming services in areas along the western seaboard.

Vodafone Ireland's parent, Vodafone Group, yesterday predicted some smaller mobile operators would be squeezed out of European markets and said the group could be interested in buying such businesses.

Arun Sarin, Vodafone's chief executive, predicted consolidation in the region because of the ferocity of competition and said the group would "look at these assets".

Any deals would have to pass Vodafone's financial criteria, but Mr Sarin said the group would be interested in Hutchison Whampoa's mobile businesses in Italy and the UK if they were put up for sale. Hutchison Whampoa owns 3, the newest entrant to the Irish market. He also said Vodafone could expand its presence in emerging markets.

Mr Sarin's upbeat remarks about potential acquisition activity came as Vodafone reported a pretax loss of £3.3 billion (€4.9 billion) for the first six months of 2006-07, compared with a £3.9 billion (€5.8 billion) profit for the same period last year.