The European Commission today approved a plan by the Irish telecommunications regulator to liberalise the mobile telephone market.
Mobile phone operators Vodafone and mmO2 have over 90 per cent of the Irish market for mobile phones and the Commission said they had not allowed other operators to use their networks to offer their services.
Telecom regulator ComReg has proposed to negotiate with the two mobile phone companies to open up the market so firms, like Britain's Virgin Mobile Holdings, can use their networks to provide services.
"I expect that the measures proposed by the Irish regulator will increase competition and will lead to lower prices for consumers in Ireland," said Ms Viviane Reding, Commissioner for Information Society and Media, in a statement.
If ComReg's talks with Vodafone and mmO2 fail, the regulator told the Commission it would be prepared to impose terms of market access, said EU officials.
The Commission said ComReg would have to notify it of the exact details of the liberalisation for approval.
The European Union executive also urged ComReg to monitor the market. "In case competitors prove capable of gaining market share, including in the post-paid segment, the regulatory measures imposed should be reviewed and discussed again with the European Commission," said Ms Reding.
Under EU rules, any plan to liberalise the mobile phone sector must be notified to the Commission. The Commission said there is 85 per cent mobile phone penetration in Ireland.