Eircom will face strict controls over the prices it charges consumers under new proposals published by the telecoms regulator.

The Commission for Communications Regulation (ComReg) may also bring in new rules to govern the firm's ability to bundle services, such as rental and calls, into single packages.

The proposals are contained in two separate consultation documents published by ComReg yesterday, which outline the regulator's approach to the future regulation of the telecoms market.

The regulations could force Eircom to continue to offer line rental as a stand-alone product to consumers even if it introduces a range of new services that bundle it together with call packages.

The new rule would seek to prevent Eircom from "unreasonably bundling" phone services in a way that would reduce price transparency for consumers.

The proposal could affect Eircom's ability to further increase the proportion of the money that it charges for access to its network through line rental, compared to its call charges. Earlier this year, Eircom raised its line rental charges for the third time in 12 months, provoking consumer outrage and limiting its scope for further increases.

But the firm has said that it will seek to bundle services together in packages, such as its recent Talktime Package, in an attempt to limit consumer reaction to increases in line rental prices.

ComReg notes in the documents that bundling retail products can "potentially distort competition".

Meanwhile, ComReg has again rejected comments made by Eircom that the markets for international and national retail calls are now competitive due to increasing use of mobile phones.

ComReg said it would maintain its past ruling that Eircom was dominant in the retail market and should be governed by a price cap that would prevent it from increasing prices sharply.

ComReg statistics show that Eircom maintains an 87 per cent market share for the provision of domestic telephone calls and a 68 per cent share of the international call market.