Eircom has announced it is to cut its broadband prices. But competitors have called the move predatory and anti-competitive.
Eircom currently charges €89 a month (ex-VAT) for customers to access a broadband service, which allows users access the Internet over 18 times faster than through an ordinary phone line.
The charge for this service will be reduced to around €45 a month (ex-VAT) and Eircom hopes to offer it from March.
Competitors such as Esat BT say the move is predatory and anti-competitive as they have not been offered a wholesale rate first, which they must under the terms of Eircom's licence.
But Eircom say they have notified the regulator ComReg and are working on a new wholesale price.
A spokeswoman for ESAT said they already had a broadband service available at a price of €48.50 per month (€59 incl. VAT). She said only 600 customers had signed on for the service, suggesting consumers do not want the service at this price.
She says the speedy introduction of flat rate internet access was of more importance, and today's announcement by Eircom was a cynical attempt on their part to delay this.
Eircom also announced that broadband will be available to any town with over 2,000 telephone lines by September of next year. Ireland currently has one of the lowest rates of broadband usage in the OECD.
