Eircom will set in motion an "awareness" campaign over the next few weeks to highlight what the company believes is an "extremely challenging" regulatory environment in the Republic.

The campaign will focus on interconnect rates - the charges which other telecoms operators pay Eircom to use its networks - and the clarity of the regulatory regime.

Eircom chief executive Mr Alfie Kane claimed this week that interconnection rates were too low and did not allow Eircom to make a return on its investment.

This had persuaded Eircom to implement a more targeted investment programme in areas where it could maximise a return, he said.

Mr Kane also highlighted a lack of clarity in some areas of regulation and suggested these factors were resulting in declining investment in telecommunications infrastructure in the Republic.

Eircom could not invest in a full multimedia digital subscriber line platform without a licence to operate the service or knowing at what cost competitors could use its network, he said.

Eircom would seek to enter "constructive discussions" with the Office of the Director of Telecommunications Regulation and the Government on the issue, said Mr Kane.

A spokeswoman for Ms Etain Doyle, telecoms regulator, said that interconnection rates were established within an EU framework based on efficient cost structures.

"Other companies and customers should not have to pay for Eircom's inefficiencies," she added.

Mr Kane's comments came just days after the telecoms regulator expressed disappointment at the slow pace of negotiations on the proposed cost of opening Eircom's local network to competition.

The campaign will increase tension over the controversial access issue, commonly known as unbundling the local loop. Although this had been mandated by the European Commission, not a single local loop has yet been unbundled in the Republic.

Last week, the regulator set a deadline of one month for Eircom to suggest a realistic charge.