New entrants have captured a fifth of the fixed-line telecoms market from Eircom since liberalisation. But growth in competition slowed dramatically in the last quarter, the latest data show.

While Eircom lost 10 per cent market share to competitors in the year to March 2001, it lost less than 1 per cent market share in the final three months of that period.

Just 10,000 subscribers switched operators during the quarter by introducing carrier pre-select, according to the latest quarterly review published by the telecoms regulator.

Carrier pre-select enables consumers to select an alternative operator to carry calls while maintaining Eircom as the provider of a telephone line responsible for billing line rental.

Analysts said last night the financial squeeze on telecoms firms during the quarter had probably resulted in the decline in the growth of competitors' market share.

Mr Ultan Ryan, telecoms expert with Mason Communications, said it highlighted inertia among customers who would not change telecoms operators without clear advantages.

Telecoms regulator Ms Etain Doyle said yesterday evidence suggested that when tariffs were benchmarked against other European countries, the Republic had slipped slightly.

"Ireland needs to keep the pressure on - if we do not continue to progress we will fall behind," she said.

The review shows entrants have 20 per cent of the fixed-line market, worth £416 million (#528 million) in the three months to March 2001.

Strong growth in the mobile phone market continued during the previous quarter. Mobile subscribers have surpassed 2.7 million, representing a penetration rate of 73 per cent.

The report highlights that, to date, no Irish-based companies have offered digital interactive services. Discussions with Chorus regarding the implementation of its roll-out obligations continue, says the report.

The Irish Times reported last week that Chorus, as with NTL, had missed its deadline for the introduction of digital television and was reviewing its introduction strategy.