Eircom is poised to oppose an upcoming decision by the Commission for Communications Regulation (ComReg) over the fees that it levies rivals to access its local phone network.

US consultancy firm Criterion Economics, employed by Eircom, has expressed concerns to ComReg over the methodology the regulator is using to set the fee, which is a crucial element in determining the level of competition in the market.

ComReg has proposed using a complex methodology based on comparing Eircom's costs with those of other telecoms firms, including 31 US local telephone companies.

Mr Hal Singer, a Criterion consultant, told The Irish Times yesterday that ComReg was choosing a pricing model designed to get the lowest access fee possible but that it had little economic justification.

"My assessment is that the regulator is willing to play fast and loose on everything," said Mr Singer, who co-wrote Eircom's critique of the review, which has been submitted to the regulator.

Last year, Eircom lodged a legal challenge against ComReg's initial decision on access fees, a move that led to the current pricing review.

A new legal challenge lodged by Eircom could further delay its rivals' attempts to gain access to the incumbent's local phone network through a process known as "local loop unbundling" (LLU).

LLU is the name given to a process through which Eircom would lease the so-called "last mile" of its telecoms network - the part that runs into every home and business in the State - to rival telecoms companies. With access to this part of Eircom's network, rivals can offer a range of internet products to customers.

Only Esat BT has successfully gained access to Eircom's local access network, although it has unbundled just 2,000 lines, a fraction of the 1.6 million lines in the State.

The firm blames the high fees set by Eircom and ComReg for the slow pace of unbundling and its reluctance to seek access to more lines.

Other rivals, such as Smart Telecom, have called for a reduction in the €16.81 interim rate agreed by Eircom and ComReg last year as part of a legal settlement on pricing agreed by the two parties.

A ComReg spokesman confirmed last night that a decision on access fees was due to be published shortly by the regulator.

Eircom vigorously opposes reducing the price of accessing its local network.

Mr David McRedmond, Eircom's commercial director, would not comment on the potential for legal action on the issue of fees.

He said that Eircom was not against LLU but the company was against selling its network below cost.

The European Commission has consistently highlighted the slow pace of LLU as a major problem for competitiveness in the region.