Smart Telecom will begin taking orders for telephone line rental from consumers today in a move that should boost competition in the residential market.

But it could be weeks or even months before customers can receive a single telephone bill for line rental and calls due to outstanding issues with the introduction of wholesale line rental.

Wholesale line rental is a service that will enable Eircom's rivals to offer line rental as well as call services to consumers for the first time. It was introduced yesterday by Eircom after two years of difficult negotiations with the Commission for Communications Regulation (ComReg).

In a surprise move, ComReg also cut the wholesale price for alternative operators yesterday. They will now pay Eircom the retail price for line rental - which is €24.18 - minus 10 per cent. Previously they were asked to pay the retail price minus 8.5 per cent.

It is believed that Smart Telecom, which has about 37,000 customers, is the only telecoms firm that will begin taking orders from customers today. Other firms, such as Esat BT and MCI, formerly WorldCom, are more cautious preferring to wait for the completion of all testing.

Offering consumers a single bill for call and line rental is considered a crucial way to bolster competition in the residential telecoms market, which is still 80 per cent controlled by Eircom.

The introduction of wholesale line rental was first announced by ComReg in 2002 but a series of delays and regulatory disputes between Eircom and rival firms have frustrated this process.

This resulted in the intervention by the Minister for Communications, Mr Ahern, who threatened to cap Eircom's rental fees unless it introduced the product.

Telecoms sources said issues remained outstanding despite the launch yesterday by Eircom.

Mr Iarla Flynn, chairman of ALTO - a lobby group representing Eircom's rivals - said the product was not ready for launch but there had been a lot of positive progress in recent months.