The Commission for Communications Regulation has blocked Eircom from launching its heavily advertised, fixed-line SMS product on its new range of digital phones.
The firm had planned to introduce a text messaging system (SMS) for customers using its new range of digital cordless handsets from October.
This is a bid to compete with the mobile telephone industry.
The proposed text service would have offered fixed-line customers a cheaper method of sending text messages to mobiles and other digital cordless phones.
The service has also been used as a key part of Eircom's high- profile advertising campaign to market its new digital cordless phone, the Eircom 4012.
But a spokeswoman for the Commission for Communications Regulation confirmed yesterday the service was blocked because Eircom did not supply other operators with a wholesale product.
"Unless Eircom gives an appropriate wholesale product they will not be able to launch their own service," said the spokeswoman.