The Commission for Communications Regulation (ComReg) has ruled that all broadcast service providers, including BSkyB, should be subject to regulation under a new European framework next year.

The decision, which was published yesterday by the new commission, will disappoint BSkyB, which has consistently argued that its satellite service should not be regulated in the Republic. If the decision is not successfully challenged by BSkyB, it will have to pay fees to the commission to cover regulatory costs and will be subject to the body's rulings.

Following a lengthy consultation process, the commission said yesterday a pay service that provided access to broadcast content services would be subject to regulatory requirements in the regime.

"ComReg considers it appropriate that such services be subject to standardised regulatory requirements particularly in relation to users' rights - approximately three-quarters of all households receive television services through a subscription to cable, MMDS, satellite or deflector services," said the commission in its paper.

BSkyB, which operates Sky Television and supplies 255,000 Irish people with television services, had argued to the commission that, because it was based in Britain, it should not be subject to regulation in the Republic. It had also questioned whether the commission could impose regulation based on the definition of the new EU regulatory framework due to come into force from July, 2003.

In its decision notice yesterday, the commission said it was not convinced that the only interpretation of the definition of "electronic communications services" in the Framework Directive is one that excludes all aspects of the provision of access to broadcasting from the scope of the directives.

The commission also said yesterday it may make all telecoms firms and network providers share the cost of providing universal services to the public. Currently Eircom, the former State telecoms firm, is the subject to a strict universal service obligation whereby it must offer certain services.

The precise method for this type of cost sharing, including the classes of networks and services to whom the sharing requirement would apply, will not be determined until the establishment of a fund is necessary and a public consultation has been held, the commission says.

It has also said that it would undertake several market reviews early next year to assess the level of competition in sectors of the communications industry. This will form the basis of the commission's approach to regulating the sector under the new European regulatory framework.

The Department of Communications, Marine and Natural Resources recently began a process to transpose the new EU regulations into Irish law.