Eircom is free to introduce a consumer digital subscriber line (DSL) service from early April, following an agreement signed yesterday with the Commission for Communication Regulation (ComReg).

The agreement concerns fees that Eircom can charge rivals wishing to use its local access network to provide a similar service. Because Eircom is dominant in the Irish market, it had to agree the tariff with ComReg. The agreement means other firms will be able to use Eircom's network to provide a similar DSL service by paying Eircom a wholesale fee of €27 per month. They will then have to set a retail price that enables them to make a margin on the service.

Eircom has said it would set up its consumer product at a flat fee of €45 per month, exclusive of VAT. It is likely other firms, such as Esat BT, will introduce products at similar prices.

The introduction of Eircom's consumer internet service could revitalise the flagging market for broadband services in the Republic. At the end of 2002 just 3,300 people had ordered DSL services, a technology that upgrades a telephone line to enable it to carry data at high speeds.

To comply with regulations, Eircom will have to wait three weeks from today before it introduces the broadband service.

Consumers will face a connection charge of about €150 when they sign up for the service. Under the wholesale agreement, Eircom rivals will also pay a once-off wholesale connection fee of €150 per user to Eircom.

Eircom's decision to introduce consumer DSL follows lengthy delays in the introduction of internet services but suggests a significant shift in strategy.

Eircom has also agreed to co-operate with ComReg and competing firms to introduce a dial-up flat-rate internet product by June.