The telecommunications regulator, Ms Etain Doyle, has sought the advice of the Competition Authority in her ongoing dispute with Eircom over the introduction of its high-speed internet service, i-Stream.
The telecoms regulator may lodge a complaint against a €75 connection fee which Eircom wants to charge other telecoms operators to supply rival high speed internet services over the Eircom network.
It is understood the regulator wants to reduce this fee to about €50 to encourage competition in the provision of internet services.
Eircom's i-Stream internet service would be the State's first deployment of digital subscriber line technology.
And the €125 million investment would mark a significant development for the Government's e-commerce ambitions.
However, last Thursday Ms Doyle said Eircom's proposed €75 wholesale price for its new service may not be cost orientated and would not enable other firms to compete with Eircom.
"The information supplied to date on the relationship between wholesale and retail pricing raises concerns about the conformity of the pricing with competition law," she said.
Eircom plans to charge its customers a €125 connection fee and a €99-per-month minimum charge.
Ms Doyle had set a deadline of Monday 5.00 pm for Eircom to provide additional information to justify its wholesale and retail charges. However, the deadline was extended to this evening due to the national day of mourning last Friday.
Failure to comply with her directive could put Eircom in breach of its licence. But the legislation which established the Office of the Director of Telecommunications Regulation enables Ms Doyle to fine Eircom just £1,500 if it breaches the terms of its licence. Some experts believe the regulator may instead seek to use competition law to enforce her wishes.
Last night the company rejected any suggestions that its price structure was unfair to competing firms. "Eircom is facing a very serious decision in how we respond to the regulator's direction. The effect of which would reduce our wholesale charges significantly," said an Eircom spokesman.
