THE STATE'S communications regulator wants to cut the rates that dominant telecoms operator Eircom charges its competitors for access to key parts of its network.

ComReg is proposing to cut the charge imposed by Eircom on its competitors for access to the link between customers and local exchanges to €12.18 from €16.43, a 25 per cent reduction.

The link, known as the "local loop", allows Eircom's rivals to offer homes and businesses the full range of telecoms services.

ComReg said yesterday that it is usually used to provide broadband services.

The agency pointed out that opening up this element of telecoms networks had been a "key driver of competition" in most other countries.

Eircom controls most of the fixed-line telecoms networks in the Republic.

Giving rivals access to the local loop is a key element in boosting competition and developing the telecoms services available in the State.

ComReg chairman John Doherty said yesterday that the regulator "believes that the successful implementation of these proposals will lead to greater competition and, ultimately, consumer benefits through increased choice and lower prices".

Chris Clark, chief executive of BT, Eircom's main rival in the Irish market, said that the proposed price reduction "would really help".

He added that opening up the local loop was a key part of developing the Republic's ambitions to develop the digital economy.