Eircom has been directed to cut the price it charges other operators for access to the local loop by 65 per cent by Telecommunications regulator ComReg.
The local loop refers to the connection between a customer's premises and the main telephony network.
In a statement today ComReg said it had instructed the company to reduce its Local Loop Unbundling (LLU) charge from €8.41 to €2.94. The move was first mooted by ComReg in March.
According to ComReg the reduction is an effort to boost competition in the broadband market and Eircom is "legally obliged "to offer the LLU line share to competing operators.
The change would bring the charge to "alternative operators" to just below the average price of €2.94 charged across the euro zone.
The infrastructure allows other broadband operators access to the higher bandwidth part of the fixed line allowing them to provide broadband without having to provide a voice telephone service, if they choose not to do so.
"This price reduction will have a very positive effect on competition in the broadband market in terms of price, quality and the choice available to residential and business consumers of broadband services", said ComReg chairperson John Doherty.
A comment from Eircom was not immediately available. Eircom has 28 days to appeal the decision to the High Court.
:quality(70)/s3.amazonaws.com/arc-authors/irishtimes/64c7504b-f9dd-4cbf-ad7c-534bbb1857e7.png)