O2 recently launched the iPhone in Ireland... what a disappointment. If one compares the value of the Irish contract to the UK one, it becomes clear that (once again) the Irish are getting shafted. So, as a conscientious citizen, I wrote to the National Consumer Agency...
Dear Sir/Madam,
I live in the North of Ireland and am moving shortly to the Republic to work. My iPhone contract costs more in Ireland and provides me with much less in terms of value. I have provided an up-to-date comparison of UK and Ireland tariffs below. I think you'll agree that the Irish are getting a very raw deal. I was wondering if there's anything you guys can do to find out why O2 are ripping off their Irish customers?
All the best,
Gareth Maguire
| O2 iPhone tariff UK | O2 iPhone tariff Ireland: |
| £35 (~€44) per month | €45 per month |
| 600 mins | 175 mins |
| 500 texts | 100 texts |
| unlimited data | 1GB data |
| YES visual voicemail | NO visual voicemail |
| YES free voicemail access | NO free voicemail access |
| YES wifi hotspot access | NO wifi hotspot access |
I received the following response:
Dear Mr Maguire,
Thank you for contacting the National Consumer Agency (NCA) with your query and please accept our apologies for the delay in responding to you. According to your email you have a query regarding pricing and value offered by O2.
For a considerable number of years now it has been settled policy that maximum prices are not set for either goods or services. This effectively means that there is no price control in Ireland apart from certain limited areas where price display orders are in force. Government policy in relation to prices is one of encouragement of competition; price transparency; and the promotion of greater price awareness among consumers.
In addition there is a common misconception among consumers that there is a correlation between prices in sterling and prices in euro. That is to say, that the Euro price is a conversion of the Sterling price. This is not the case, the service is priced at so many euro because that is what the retailer/trader believes the Irish market will bear.
In addition, Ireland and the UK are two separate economies. There are a number of factors, which will affect the total price that a consumer must pay for the goods, for example:
- Tax imposed on the goods that has to be passed on to the consumer (i.e. VAT)
- Cost to the retailer (wage rates, insurance, rent for premises etc.)
- Volume of consumers available to purchase the goods (compare the populations of both countries)
- Amount of competitors within the two countries.
- These factors will differ between countries and therefore influence price.
We trust you have found this information useful and if you have any further consumer related queries please do not hesitate to contact us on 1890 432 432.
Yours Sincerely
Sean Conway
National Consumer Agency
I feel that, while Sean's points are all valid, he is missing the point so much that it is hard to know where to start... I have come to the sad realization that O2 (and other multinationals) will charge whatever they feel they can get away with - I respect this and I guess I wouldn't expect anything else! The real problem is that a culture of acceptance has emerged in the Republic of Rip Off and the NCA aught to be countering this. For example, wouldn't the cause have been better served had the NCA contacted O2 to put pressure on them to reduce the UK/Ireland differential rather than emailing me to justify it?!?! I have no qualms in saying that the newly formed NCA are implicit in the problem.