REGULATION: The maximum penalty for licence breaches by telecoms operators will rise to €4 million from €1,900 or 10 per cent of the operator's turnover, whichever is greater.

The sanctions were announced by the Minister for Public Enterprise, Ms O'Rourke, at the second stage of the Communications Regulation Bill yesterday.

Esat welcomed the decision by the Minister to raise the penalty. Its head of regulatory affairs, Mr David Taylor, said it would enable operators to compete in the market on a fair and effective basis.

The Communications Regulations Bill will expand the powers and functions of the telecoms regulator. The watchdog's office will become a three-person commission, with increased powers of enforcement. It will also restrict the powers of telecoms to disrupt traffic flow by opening roads for cable laying.