The telecoms regulator, Ms Etain Doyle, has vowed to "vigorously defend" a High Court challenge by Eircom to her office's proposed prices for renting lines as part of the local loop unbundling process.

Unbundling is the process by which former State telecoms operator Eircom will open its local access network to competitors.

Speaking in Dublin yesterday Ms Doyle said she regretted that Eircom had issued a legal challenge to the proposed prices. She said in the interim her prices stood. They are less than half those suggested by Eircom who wanted €32 per line per month.