Cable firms, NTL and Chorus, have strongly criticised proposed new regulations which would force operators to seek prior consent from the telecoms regulator before increasing prices, writes Jamie Smyth

The firms said the new regulations did not take into account that the firms had recently agreed to give up exclusive rights to broadcast within their franchise areas. These rights are due to be rescinded from March 1st and could pave the way for competitors to enter the pay TV market.

NTL operates mainly in Dublin, Waterford and Galway while Chorus, which is half-owned by Independent News & Media, operates outside these areas. The new regulations were drawn up by the telecoms regulator, Ms Etain Doyle, and have been sent to the Minister for Public Enterprise for approval. They follow an agreement between the operators and the regulator last year which paved the way for firms to increase prices by up to 33 per cent if they agreed to give up exclusive rights to broadcast in their cable licences.

It is understood the cable firms believed the deal on the "exclusivity clause" would remove an existing requirement that they seek prior consent from the regulator before raising their prices.

But an information notice on the proposed regulations published yesterday by Ms Doyle states that the powers of price control and investigation have been retained by the telecoms regulator. The cable firms also criticised the regulator yesterday for not consulting the industry on the regulations before sending the proposals to the Minister for Public Enterprise for consent.

Mr Willie Fagan, director of regulatory affairs at Chorus, said the firm was taking legal advice but wouldn't comment further until it saw the full regulations. A spokeswoman for the telecoms regulator rejected these criticisms. "All the major issues in respect of the amendments to the regulations were covered in previous consultations on pricing and regional digital terrestrial television," she said. "This has now been followed up by an information notice to let people know exactly what is proposed in the regulations."

The cable firms, which provide cable TV services to more than 500,000 households in the State, have come under tremendous competitive pressure from British satellite broadcaster BSkyB recently.

Mr Edward Brophy, head of regulatory affairs for NTL, said there was no need for price control now because BSkyB was providing direct competition to cable operators in the Irish pay TV market through its Sky channels. As BSkyB is based outside the Republic, it is not subject to price controls or other Irish regulations.