Austria mobile prices unlikely to rise -Hutchison

VIENNA Mon May 13, 2013 4:02am EDT

VIENNA May 13 (Reuters) - Prices for mobile phone service in Austria will stay under pressure even after Hutchison Whampoa's takeover of Orange Austria cut the number of rivals to three, the local boss of the Hong Kong-based conglomerate told a newspaper.

"Austria has the lowest prices in Europe, competition has been very intense. It will stay this way," Hutchison 3G Austria head Jan Trionow told the Kleine Zeitung in an interview published on Monday.

"I don't think prices could rise for the same service. The trend will rather be that you will get better and better service for similar prices," Trionow said.

Telekom Austria and Deutsche Telekom's T-Mobile also battle for share in the cut-throat market of 8.4 million people.

Telekom Austria said last week it expected price competition to intensify in its major markets, rather than diminish as had been hoped by Austrian carriers. (Reporting by Michael Shields; Editing by Louise Heavens)