The Minister for Communications, Mr Ahern, is hoping to intervene this week over Éircom's controversial decision to increase its fixed line rental price.
While the Minister does not have the power to block the price increase, which is now handled by the telecoms regulator, officials in his Department are studying other options that may be open to him.
They are understood to be examining whether the rental increase could be deemed to be anti-competitive and if it is
likely to have an adverse
impact on plans to expand the reach of broadband across the country.
If so, the Minister is expected to issue a policy directive to the telecoms regulator, ComReg. Sources say he is hopeful that such a measure might halt or delay Éircom's planned price increase.
The proposed 8 per cent increase in line rental would push the monthly fee to €24.30, almost €10 higher than the EU average for line rental during 2003 of about €14.
Éircom's line rental charges for residential consumers are currently the highest in the European Union at €22.50.
At a meeting of the Joint Committee on Communications, Marine and Natural Resources on Wednesday, Mr Ahern is expected to outline what options are available to him.
The Minister has intervened in this area before.
In the face of a strong lobbying campaign by consumer groups and telecom companies, Mr Ahern issued a "policy direction" to ComReg to oblige Éircom to introduce flat-rate access to the Internet.
"The Minister has intervened in this area before, and he isn't afraid to do so again," said one Department source.
"In the meantime he will see what options are available to him and what can be done."
