Eircom retains an 86 per cent share of the voice telecoms market in the Republic and has slowed the pace at which competitors are winning new customers, figures published by the telecoms regulator show.

Eircom's dominance is reflected in a decision yesterday by the regulator, Ms Etain Doyle, to reconfirm Eircom as the only fixed operator to have significant market power at a retail level.

This designation means Eircom has obligations to supply extra corporate information to the regulator and faces tougher regulation to ensure a competitive marketplace.

The figures show Eircom lost just 3 per cent of market share, based on retail revenues in 2000-02. In contrast, the firm lost 6 per cent of market share in 1998-2000.

Industry experts said yesterday this reflected a tougher climate for alternative telecoms operators, who could not afford to invest in extra marketing or infrastructure.

The figures also show Eircom dominates the national market at a network level, which is based on the revenues gained from terminating a call on networks. Eircom retains 88 per cent of this market, down from 94 per cent in 1999.

Both Vodafone and O2 were also reconfirmed as holding significant market power in the mobile market, with market share of 62 per cent and 37 per cent respectively. The third mobile operator, Meteor, held just 1 per cent of market share in the calendar year 2001, according to the figures.

The decisions yesterday on significant market power by the telecoms regulator are likely to be the last made under the current regime.

It is expected new European regulations will be introduced next year that will move the focus of regulation to greater attention on competition law.