EIRCOM WILL have to reduce the monthly charge for providing access to its phone lines to competitors from €8.41 to €0.77 under a decision published yesterday by the telecommunications regulator.

The decision relates to line share which enables a competitor to offer broadband to a premises while Eircom continues to provide voice services. It is one form of local loop unbundling, the EU-mandated process for providing access to the copper networks controlled by incumbent telecom operators.

ComReg arrived at the monthly price following an analysis of Eircom’s costs for providing the service. Eircom proposed an alternative pricing model should be used, but in yesterday’s published decision ComReg said it felt this would not achieve its regulatory objectives, “namely compliance with the cost orientation obligation and protecting consumer welfare”.

Last year, in an interim decision, ComReg had proposed the charge be reduced to €2.94 a month pending a full economic analysis. It subsequently rowed back on this decision following a High Court challenge by Eircom.

Eircom now has one month to appeal yesterday’s decision before it becomes binding. Last night a spokeswoman for the company said they were reviewing the document.

BT Ireland last night welcomed the move. “BT welcomes ComReg’s direction of a substantial price reduction for local loop unbundling,” said Chris Clark, chief executive of BT Ireland. “We firmly believe that local loop unbundling has a significant part to play in the creation of competitive high-speed broadband in the Irish market.”

Although BT last month transferred its residential and small business customers to Vodafone, it provides wholesale services to other operators.