The chairman of communications regulator ComReg, John Doherty, has defended Eircom's increase in line rental charges announced yesterday.
He told RTE radio the price rises were within agreed price caps, decided last year.
Mr Doherty said that in 2003 it was agreed that Eircom would have to keep price hikes at or below the rate of inflation for the next three years.
He said that at the moment Eircom was complying with these rules. Doherty also pointed out that in other industries price rises were often higher than the inflation rate.
