Irish Regulator: Vodafone, MM02 Have Significant Market Power"

DUBLIN -(Dow Jones)- Irish communications regulator ComReg on Tuesday designated Vodafone PLC (VOD) and MM02 PLC (OOM) as having "significant market power" in Ireland.

This official designation follows the European Commission's ruling in support of ComReg that Vodafone and MM02's unit 02 Ireland must open up their Irish networks.

Although Vodafone and MM02 have said they'll appeal the European Union's decision, most analysts say they're unlikely to stop ComReg's determination to boost competition.

"ComReg found that the market was not effectively competitive because of joint dominance of Vodafone and 02," the regulator said Tuesday.

Paving the way for possible legal action, it added, "ComReg believes that this situation will continue in the absence of appropriate regulatory action."

Designating them as having significant market power is a legal procedure that brings ComReg a step closer to forcing them to open their networks to alternative providers.

ComReg said the next step will be to "impose" obligations on Vodafone and MM02 such as opening their networks to Mobile Virtual Network Operators, or MVNOs.

MVNOs buy excess capacity - or airtime - on mobile networks and resell it to consumers, thereby boosting competition and helping to reduce prices.

Hong Kong's Hutchison Whampoa Ltd. (0013.HK) and Ireland's Eircom Group PLC (EIR.DB) have already expressed their desire to enter Ireland's mobile market.

-By Quentin Fottrell, Dow Jones Newswires; +353-1-6762189; quentin.fottrell@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 22nd February 2005