Telecoms regulator Ms Etain Doyle has ruled that Eircom cannot introduce its high-speed internet product, i-stream, until it satisfies her office that its prices comply with competition law.

In a statement yesterday, Ms Doyle said she still had concerns that Eircom's wholesale price structure - the price which it would charge other telecoms operators to offer similar products- would be a "margin squeeze" for competitors. She directed Eircom to submit revised, comprehensive and compliant cost proposals for the wholesale product again. "The director has a duty not to approve a price structure which might breach competition law. In particular, she may not approve a margin squeeze," said Ms Doyle.

This is the latest in a series of disputes with Eircom on pricing. An Eircom spokesman said last night that Ms Doyle wanted to engage in another mathematical exercise to delay the product.

Eircom planned to present i-stream to businesses and consumers next week. This would have been the first deployment of digital subscriber line technology in the Republic. The technology enables connection to the internet at speeds of up to 30 times faster than existing dial-up services. It is considered crucial to promote the Republic's competitiveness. Telecoms experts warned yesterday that delay over the introduction of a high-speed internet service was making the Republic a "laggard" in terms of broadband access.

Mr Harry McDermott, director of Mason Communications, said the consumer was the ultimate loser in the stand-off between the telecoms regulator and Eircom.

In her statement yesterday, Ms Doyle regretted that the benefits to consumers from the I-stream product would be delayed. But she said the action was necessary to prevent a price structure that would stifle competition.