Mobile phone users in the Republic who subscribe to the Vodafone network spend more on calls than the firm's customers in other European states, key performance figures published yesterday show.
The strong results from Vodafone Ireland provoked calls for price cuts from consumer groups, but the firm said its performance reflected the fact that Irish people talk more on their mobile phones.
Vodafone's 1.7 million mobile subscribers in the Republic spent €523 per person on average in the 12 months to the end of June 2002, netting the company annual revenues worth about €893 million.
This is €81 more than the annual bills paid by the average Vodafone subscriber in Britain and €221 more than that spent by customers of Vodafone Germany.
Only Vodafone subscribers in Japan spend more than Irish users, contributing on average €769 per person to the firm's coffers. But analysts said yesterday a significant percentage of this figure would be for data services that have yet to be introduced in Europe.
Vodafone Ireland, which published its average revenue per user in the Republic for the first time yesterday, said the high average revenue per user figure was generated because of greater mobile usage in the Republic than in other European countries and not because of higher mobile prices.
"Irish people speak for one minute longer on average than customers in Europe. There is also a high proliferation of text messaging and a greater usage of WAP [wireless application protocol\] services," said a Vodafone spokeswoman.
But the Consumers' Association of Ireland (CAI) said the figures were proof consumers had been paying more than their European counterparts for too long.
"Companies will say its because they are not in the market for that long but time is getting away from them," said Mr Dermot Jewell, CAI chief executive. "If prices don't come down, consumers will reduce their usage and firms will lose customers."
Vodafone's strong average revenue per user figures place it slightly ahead of main rival O2, which recently reported average revenue per user of €518 for the year to the end of June 2002. O2's figure for the Republic also placed it among its top-performing European subsidiaries.
The State's third mobile phone firm, Meteor, has yet to publish average revenue per user figures.
Mr Enda Hardiman, a telecoms analyst based in the Republic, said some of the difference between British and Irish average revenue per user figures could be explained by higher usage patterns but prices were probably a little higher here.
"There are four credible players in the UK market while in the Republic, until recently, we had a duopoly, and these do not create cheaper prices," he said. "Prices will have to come down over the next year as a fourth operator, Hutchison, enters the market."
A breakdown of Vodafone's figures show prepaid users spent an average of €308 in the 12 months to the end of June while contract users spent €1,067.
Approximately 71 per cent of Vodafone Ireland's 1.7 million subscriber base were prepaid users. The firm's subscriber base remained unchanged at 1.7 million over the past three months.
