AN English company claimed in the High Court yesterday that Telecom Eireann had abused its monopoly powers when it withdrew eight "freefone 1-800 numbers" from the company.

Mr Paul Gallagher SC, for Zockoll Group Ltd, Dyno Rod plc and Phone Names Ltd, Surbiton, Surrey, said the essence of the dispute centred around the concept of "vanity telephone numbers".

Zockoll had recognised, apparently in advance of anyone else, that a brand name could be created from telephone numbers if the telephones were fitted with "alpha numeric keypads".

His clients applied for a certain choice of telephone numbers. The vanity numbers' service was in its infancy in Ireland and there were very few alpha numeric keypads available. Since the latter part of last year, Telecom had provided such keypads on its telephone apparatus.

Having secured a number, Phone Names would go about building up a business around the phone name by creating a brand image and devising advertising slogans.

It was the manner in which the company proposed to use phone names derived in this way which gave rise to the present controversy, Mr Gallagher said.

Mr Gallagher said in Britain the annual turnover from the franchised network operated by his clients was about £20 million per annum of which £4.5 million was paid to Dyno Rod by way of royalty.

Mr Gallagher said they applied for eight specific numbers. There seemed to be delight on Telecom's part to give the numbers but suddenly last November withdrew service on the eight numbers.

Mr Gallagher said that in December last year, his clients applied in relation to 270 other vanity numbers but had been refused by Telecom.

The hearing, which is expected to last more than five days, will continue today.