Vodafone has increased mobile phone prices for thousands of subscribers despite the publication of a report yesterday which shows prices in the Republic are higher than in many European states.

The price rises affect subscribers using the firm's cheapest contract package called Vodafone Light, while prices for some of the firm's contract options have reduced under the new pay plan.

The rental for a Vodafone Light contract has increased to €20 per month under the plan, up from €19.20.

In addition, calls made outside of the Light free minutes plan will cost, on average, 1 cent more per minute for subscribers.

A Vodafone spokeswoman said the tariffs were introduced as part of a process to round up or down euro prices, and would reduce prices for three-quarters of the company's subscribers.

Under the new plan, business subscribers are likely to benefit from the rounding down of some euro tariffs by one cent, according to figures supplied by Vodafone. Meanwhile, a report, which was published by the Commission for Communications Regulation, shows the Republic is ranked 11th out of 15 European states in two surveys on contract mobile prices.

The cost of calls made on Irish pre-pay mobile networks is ranked third lowest out of 15 European states, and a third survey of low user contract subscribers shows the Republic is ranked seventh.

The report also shows mobile firms here have the second highest average revenue per user figure in Europe. Irish mobile users spend €44 per month on mobile services, second only to Switzerland and well behind British users who spend on average €30 per month.

Vodafone and O2 have consistently said these high revenue figures are generated because Irish people use their mobiles more than other Europeans. But analysts said yesterday the European pricing surveys suggested that certain Irish users faced higher tariffs than their European counterparts.

"Yes we do use our mobiles more than some Europeans but we also pay more in Ireland," said Mr Ultan Ryan, an independent telecoms consultant. "Every mobile user should review their mobile tariff plan every few months to ensure they have the best deal."

The Commission for Communications Regulation is currently conducting a full review of mobile firm's accounting procedures.

Data obtained through this consultation could be used to discover if mobile firms are overcharging consumers, according to sources.

The report by the Commission also shows there are now three million mobile phone subscribers in the Republic, increasing penetration to 77 per cent. An analysis of the Irish market shows the third mobile firm Meteor lost market share during the three months, with its share of the market down 1 per cent to just 3 per cent,

Meanwhile, employment in the telecoms sector has slumped 10 per cent over the past 12 months and now stands at 15,300, of which 79 per cent are employed in the fixed line telecoms sector.