Telecommunication services provider Magnet Networks has criticised ComReg's decision to set aside its decision to direct Eircom to reduce its line share pricing from €8.41 to €2.94.

Line share pricing is a charge made by Eircom for renting part of the local loop allowing alternative operators to provide their own data services.

ComReg said it was going back on the LLU decision after Eircom launched a High Court appeal on July 23.

In a statement, ComReg said it 'regrets' Eircom's action, and added that it felt 'that it now must act in the most practical and expeditious manner available to it and to try to minimise the level of uncertainty in the marketplace arising from Eircom’s appeal.'

The Regulator said it has been given a 'more detailed expert analysis' since it announced the interim LLU price and it will use this information to 'propose a specific and substantive price'.

But this explanation did not appease Magnet, with its CEO Mark Kellett expressing his disappointment with the decision.

'The directive to reduce line share pricing was a progressive step by ComReg and indicated a willingness to take a more forceful line against Eircom’s anti-competitive pricing,' Kellett said.

'Magnet is extremely disappointed that ComReg felt it necessary to back down in light of Eircom's legal action,' he added.