The Telecommunications Regulator, Ms Etain Doyle, has proposed a new scheme to regulate the rates which cable and MMDS operators charge customers. Ms Doyle is also proposing that cable operators should compensate customers for poor service and develop a customer charge.

The new price mechanism will take into account factors such as the consumer price index and the level of capital investment made by the cable operators. Ms Doyle said yesterday that the goal of the price mechanism was to create an incentive for efficiency and "responsiveness to consumer demand".

Operators have until July 28th to respond to the consultation paper issued by Ms Doyle. She wants to introduce the new scheme for three years from October 1st.