Limits on ComReg's ability to enforce its rulings are hitting competition in the telecoms market and slowing the spread of high speed internet services, a new report shows.

The EU Commission yesterday released its annual report into electronic communications. It shows the Republic trailing most of the rest of the EU when it comes to the availability of broadband, the high-speed internet service that is seen as vital to the State's economic development.

The report shows that 5.34 per cent of the population had taken up broadband by last October, less than half the EU average of 11.45 per cent.

The Republic was ranked 19th of the 25 states in the union. The Netherlands topped the survey with 23.79 per cent. The UK and France were both well ahead of the average with close to 15 per cent, and Luxembourg had 13 per cent.

Recently-joined members Lithuania, the Czech Republic, Slovakia and Estonia were also ahead of this country.

The report argues that the communications regulator, ComReg, does not have enough power to deliver increased competition, which would in turn boost broadband penetration.

"Obstacles remain to the further development of competition in the fixed and broadband markets, particularly the limitation of the national regulatory authority's (NRA) power to enforce decisions," it says.

It adds that this has prevented rivals of dominant player Eircom from getting enough access to its networks which would in turn help to boost the country's poor broadband performance.

Eircom has successfully challenged a number of Comreg rulings in relation to this area. Last autumn, the dominant player agreed to come up with a set of proposals detailing the steps it was willing to take to allow competitors access to the link between its exchanges and consumers' phones.

Opening up this link, known as the "last mile" or "local loop", is seen as vital to opening up the Republic's networks to competition and to increasing the reach of broadband.

ComReg yesterday itself released a report showing that there is growing consumer awareness of new telecommunications services like internet telephone calls and third generation (3G) mobile technology.

Six out of ten mobile users said they were aware of 3G, and close to one in five said that they intended to sign up for such a service over the next year.

Over one third of internet users knew about voice over internet protocol.