Eircom has abandoned its High Court challenge to a decision by the Office of Director of Telecommunications Regulation on how it should make its network available to other operators.

The former semi-state operator began proceedings against the regulator last September, following publication of a document known as the Reference Inter connect Offer. The document was a framework covering the commercial terms and conditions which apply to Eircom and other operators.

The move effectively froze any new interconnect offer which the telecoms regulator wanted to make, because the parties had to await the outcome of the High Court hearing.

Eircom objected to the document on several grounds. It said it had been given only 48 hours to respond to the document, which was in breach of natural justice, because it represented an inadequate consultation process.

Eircom also objected to the document because of certain proposals which it believed would put it at a competitive disadvantage regarding other operators. These included a proposal that Eircom give other operators access to its sites and ducts (i.e. co-location) and that the company make available details of new services one month in advance of bringing them to market. There were also differences over the costs incurred in billing other operators to use its network.

Before a full hearing in March, the telecoms regulator reopened the consultation process on the document. Last week the regulator published a report on these consultations and a new reference interconnect offer. It is believed Eircom then decided it would drop the proceedings because most of its objections had been resolved.

It is understood that the regulator has agreed that Eircom should enter into talks regarding co-location but only on a commercial basis. It is also understood that future interconnect agreements may include a set-up charge and a per second charge thereafter, which will be levied by Eircom for delivering calls on behalf of other operators.

However, Eircom will also be subject to penalties for the first time for failing to meet certain service standards when dealing with other operators. Last week's document includes provisions which ensure that Eircom must deliver certain services within a specified time. Its rivals have complained in the past that the company was far too slow in delivering key products - such as circuits - that were needed to provide alternative services.