The telecoms regulator, Ms Etain Doyle, will decide shortly whether to impose regulatory sanctions against cable company NTL over its failure to provide 20,000 customers with digital television.

A spokeswoman for the regulator said yesterday that NTL had submitted proposals on Monday to remedy a bitter stand-off over upgrading its microwave network to carry digital television services.

Ms Doyle had taken the unprecedented step of issuing a public rebuke to NTL over its policy regarding its microwave television transmission system network.

Earlier this month she asked NTL to make a public statement on the matter by October 15th and said the situation with the cable firm had become "intolerable".

Under the terms of its licence, NTL had committed to upgrading the network to digital by January 2001. But the firm subsequently ran out of cash and reneged on its earlier commitment to upgrade parts of west Mayo, Galway, Waterford and Dublin.

An NTL statement issued yesterday said the firm acknowledged there had been a delay and it outlined proposals this week to the regulator to remedy the situation. A spokeswoman would not disclose details of the proposals, which, it is believed, were made at a meeting with the regulator on Monday.

Under the terms of NTL's licence the regulator could revoke its licence to operate in areas which have not been upgraded to digital. She could also fine the company for its failure to upgrade.

Industry sources believe the regulator is unlikely to revoke NTL's licence as this would result in a loss of service to many customers.

According to Business and Finance magazine a Tallaght-based firm, Off Air Electronics, has made a bid of €6.5 million for NTL's microwave network and subscribers. But it remains unclear whether NTL would consider selling for this relatively low price.

NTL paid €680 million for Cablelink's cable and microwave networks, and its 375,000 subscriber base in 1999.

NTL Ireland's parent firm is expected to emerge from chapter 11 bankruptcy protection shortly.