The European Commission should seriously consider taking legal action against incumbent telecoms operators which have discriminated against competitors, a new report has recommended. The study by legal firm Squire Saunders on behalf of the Commission,details numerous complaints by Esat against Eircom over the process of opening its local telephone network to competition.

Esat was the only competing Irish telecoms operator to respond to the Europe-wide survey, confirming that most competitors will not seek to offer a full range of services, says the report.

Specific Esat complaints listed include a lack of clarity on the pricing and the provision of information on the telephone exchanges available for opening networks to competition. The firm also criticises the telecoms regulator, Ms Etain Doyle, for failing to intervene effectively or to sufficiently involve the Competition Authority in the process of unbundling the local loop here.

Unbundling is the process of enabling competing telecoms firm's to access an incumbent operator's local networks to offer services to consumers. It was mandated by the Commission from January 1st, 2002, but has been strongly resisted by incumbents.

"This determination from Brussels provides a boost to Esat's Government grant-aided programme to roll out 40 unbundled exchanges in 2002," said Mr David Taylor, director of regulatory affairs Esat.

An Eircom spokesman said a separate EU report had found Eircom was complying with EU regulations and the Republic was to the fore of liberalised markets. "We have had unbundling for 15 months but no operators have taken up this offer," he added.

The Commission report found numerous examples of discriminatory conduct in opening local telecoms networks to competition in Europe.