Eircom lost a further 25,000 telephone customers in the first quarter as competition continued to increase in the market.

The number of households choosing an alternative telephone supplier for call services rose to 350,000 by the end of March 2005, up from 325,000 at the start of 2005. This represents a major increase since the first quarter of 2004 when just 250,000 people used alternative firms.

There was also a continued increase in the number of households that choose to take their line rental from alternative providers as well as call services. By the end of the first quarter some 110,000 households had chosen to take the line rental from rivals.

The figures, which are included in the latest quarterly report published by the Commission for Communications Regulation (ComReg), mean that one in five consumers now use an alternative phone supplier to Eircom.

The report also highlights that Eircom's line rental prices are higher that the equivalent rental prices in all 25 EU states. Eircom's standard line rental charge is €24.18 per month. This is the only fee above €20 in the EU. However, the Republic is ranked from 5th to 7th cheapest for national and international call costs.

The ComReg report shows about 152,000 people had subscribed to broadband by the end of the first quarter. It also shows that Ireland is ranked 10th out of 15 EU states in terms of the cost of broadband over Eircom's network.

The number of people using dial-up internet services increased by 4 per cent in the first quarter of 2005 to 211,000 compared to the prior quarter. The report also highlighted that 46.2 per cent of homes now have access to a computer while 38.2 per cent of people use the internet.

Overall, the revenue generated from telecoms and internet services in the year to the end of March 2005 was €4.1 billion. This represents an increase of 1 per cent on the previous quarter and 9 per cent since June 2004.

Meanwhile, the average spend on mobile services in the residential sector is now estimated to be €53 per month, says the report.

Spending is highest among 15-34 year olds, whose average spend exceeds €57 per month. Irish mobile users also spend more than any other Europeans on data services such as text messages.