Several telecoms operators are considering leaving the employers' body IBEC over concerns that it favours dominant firms such as Eircom, Digifone and Vodafone in policy issues.

The operators, which are understood to include Esat Telecom and Nevada tele.com, are furious about attempts by IBEC to propose a series of amendments to the Communications Regulation Bill.

The Bill, which is set for a final reading in the Dáil this Thursday, includes a range of stiff penalty provisions including fines of up to 10 per cent of a firm's turnover, if it breaches the terms of its licence.

This would mean companies such as Eircom, if found guilty of breaking the terms of their telecoms licence, could face fines of up to €254 million on prosecution.

These penalty provisions have already been the subject of controversy as they were taken out of the first draft of the Bill following advice from the Attorney General. However, they were reintroduced as an amendment when the Bill was read in the Dáil.

The Bill would also create a new commission to replace the Office of the Director of Telecommunications Regulation. This body would have greater power to force operators to act in a non-discriminatory manner, and has been heralded as a piece of legislation that would promote extra competition. But a subcommittee of IBEC's telecoms division, which includes Vodafone and Eircom representatives, has proposed a series of amendments that would substantially reduce the level of fines that could be levied on operators.

A draft document circulated to IBEC members last week proposed lobbying the Government to reduce the fines and give owners of infrastructure greater rights over whether they should give access to competing firms. It is intended this document should be circulated to politicians before the final reading of the Bill this week.

But several firms are opposing the amendments and have accused IBEC of pandering to its larger members such as Eircom, Vodafone and Digifone.

The head of IBEC's telecom's division, Mr Tommy McCabe, was not available for comment yesterday. An Esat spokesman was also unavailable for comment.

An Eircom spokesman said last night a majority of IBEC's sub-group on telecoms supported the amendments and the paramount issue was ensuring there was an environment which supported investment in infrastructure.

A Vodafone spokeswoman said the proposed sanctions in the Bill should reflect the seriousness of the offence.