New Carphone Warehouse mobile network to spark phone price war
Published 17/08/2015 | 02:30
The entry of a new mobile phone player will spark a price war that could see consumers saving hundreds of euro.
Carphone Warehouse, which has 90 stores in Ireland, is set to launch its own operator ID Mobile here in the coming weeks.
The new operator will be up to €166 a year cheaper than rivals for those on bill-pay, according to mobile phone comparison app Killbiller.com.
It will be the cheapest operator on the 4G network for more than seven out of 10 customers.
A new report by Killbiller.com has also concluded that other operators will almost certainly respond with lower prices due to the entry of ID.
The new operator will piggy- back on the Three Ireland network as a mobile virtual network operator (MVNO).
Killbiller.com's Bar Lehane, who has seen details of the new tariffs being offered by ID, said the new operator would be the best value 4G mobile operator at launch. Its closest competitor will be Three, followed by Tesco Mobile and Vodafone.
He said an analysis of the new operator's pricing shows its SIM-only plan would cost customers just €20.18 a month. This is where you keep your existing phone, but change to the SIM card of the new operator.
The new deal would be €166 a year cheaper on average for those who pay for their mobile phone services with a monthly bill, he said.
"ID's introduction is going to significantly add to the amount of competition in the market, which is good news for consumers," Dr Lehane said.
He added that large numbers of the mobile phone users were overpaying for their service. It has been found that the average mobile user could save up to €500 by switching to a different provider.
ID is targeting 6pc of the Irish market in the next five years. There are 4.86 milllion mobile subscriptions in Ireland.
"Based on our findings, ID will deliver plans that will result in genuine savings for the consumer. While consumers can expect ID to be strongest in the 4G space, overall, it will have the best-value plan for one in three people on both 3G and 4G."
Dr Lehane predicted a reaction from other operators.
"Given how competitive ID is set to be at launch, we can expect to see the other operators react with offers and updated propositions.
He said that the best advice for consumers was to shop around to find the best value.