Shares in Eircom reached a new low yesterday as the former State monopoly lost almost 1.92 per cent to finish 5 cents weaker at €2.55.

The stock was floated last year at €3.90 and has languished below its launch rate for much of that period.

A trader said the stock was weakened by a lack of demand for European fixed line telecom stocks in general and by poor results yesterday from the British operator Thus which plunged 30 per cent to an all-time low when it warned that tough competition for residential Internet customers would wipe out its cash flow this year.

The announcement last week by the Director of Telecoms Regulation, Ms Etain Doyle, that she would award third generation mobile licences by means of a "beauty contest" - and not an auction as elsewhere in Europe - has failed to lift Eircom's stock.