The Icelandic cell phone market is characterized by lack of competition, where two telecommunications companies divide the market between them. Síminn, or Iceland Telecom, holds a 65 percent share of the market, while OgVodafone has a 35 percent share. These are the findings of a working group commissioned by the Icelandic Post and Telecom Administration (PTA) and its counterparts in the other Nordic countries to compare the mobile phone markets in those countries. Morgunbladid online reports.
Among the findings is that prices to consumers have gone up in Iceland since 2002, while they have decreased in the other Nordic countries. At the same time mobile phone use, measured in the number of minutes per customer, has remained steady in Iceland while it has increased in the other Nordics.
This state of affairs is cause for concern according to the PTA, and it plans to respond by urging mobile phone companies to lower and even out prices, and to place a requirement for Iceland Telecom to admit new service operators onto the market.