The communications regulator has set tougher customer service targets for Eircom after finding that the company's performance has deteriorated over the last couple of years.
ComReg also said there was 'clear evidence' that Eircom was spending significantly less on maintaining its network, which was leading to more faults and affecting huge numbers of consumers.
It also expressed scepticism about Eircom's arguments that the costs of meeting the new targets were too high.
The regulator said the level of faults experienced by Eircom customers in 2006 and 2007 - 21 per 100 lines last year - was high by international standards. It has set new targets to bring the fault rates down to 12.5 per 100 lines by 2012 .
On repairs, Eircom must complete 80% within two working days, and 95% by a time agreed with the customer.
ComReg said it was concerned that customers were having to wait more than six months - and in some cases more than a year - for connections to the phone network.
It has now set a target for all phone installations to be made within six months, and 80% to be met in periods ranging from 24 hours to two weeks, depending on the type of request from the customers.
Eircom is currently the Universal Service Provider (USP), which means it must ensure all citizens have access to a fixed-line telephone service.
