Irish mobile phone charges are "extremely high" when compared with other OECD states, the telecoms regulator said yesterday.

Ms Etain Doyle's comments were rejected by Eircell and Esat Digifone, which claimed their prices were competitive. In a review marking the second anniversary of deregulation, Ms Doyle said rates charged to two million mobile users left scope for improvement when compared with the OECD average.

This would improve once the third mobile operator, Meteor, entered the market early next year, Ms Doyle said. That company had made "gallant" efforts to have its service online before Christmas.

Ms Doyle said mobile penetration would exceed 60 per cent by the end of the year, up from 49 per cent in June. Total revenues in the fixed, mobile and broadcasting markets top £2 billion (€2.53 billion) every year. On the opening of the "final mile" of telephone lines between Eircom exchanges and its customers, Ms Doyle said the company had failed to provide a list of indicative rental rates to use the lines.

Given the likely unbundling of the local loop in January, she said Eircom had given an undertaking to provide such rates by November 28th. The unbundling will enable third-party firms to rent Eircom's lines, further opening the telecoms market to competition.

Eircom's spokeswoman said the company would comply with its obligations.