Eircom has moved to facilitate broadband customers who want to switch providers using its "local loop". Executive chairman Pierre Danon said the move would bring the business of some 390,000 broadband customers into "play" in the market between broadband operators.

There was a lukewarm response from ComReg, the industry regulator, which said the move was welcome but was offset by "continued delays in other aspects" of the local loop product. "The continued absence of a fully effective local loop product limits consumer choice, innovation and pricing flexibility. ComReg cannot and will not accept anything short of a speedy and comprehensive solution to all the outstanding issues," it said.

Eircom's initiative was also dismissed by BT Ireland, which was angry that the telecoms group would not provide the same service to customers who wished to transfer their business to broadband operators using rival networks.

"That will go over my dead body, certainly not. It's a free lunch and I don't give free lunches," Mr Danon said.

Eircom will provide "inter-operator migrations" from the end of May and said the move would chiefly benefit Smart Telecom and Magnet Networks. These firms are broadband providers on Eircom's local loop, the final mile of the phone network into homes.

"I am on record here. It will take a matter of hours and it will be seamless and will be free," said Mr Danon. But he ruled out providing "intra-operator migrations" free of charge, a system in which clients stay with the same provider but the operator moves from Eircom's network.

Mr Danon said Eircom was not under legal obligation to provide inter-operator or intra-operator migrations and said the move was designed to break gridlock in the market on the local loop question.

BT Ireland chief Danny McLaughlin rubbished the move. "I would have welcomed this announcement this morning had it included intra-operator migrations. With no intra, it discriminates against a large group of customers and we have 200,000 them. I think it is significant. It is significantly negative," he said.

In response, Eircom's spokesman said: "Customers being able to move within hours while keeping their phone numbers is very customer-friendly."

Smart Telecom welcomed the move. "The decision will create significant opportunities for Smart to increase both its footprint and services to customers in a timely and efficient manner."