Consumers could benefit from significant price cuts for broadband services after telecoms regulator ComReg confirmed that it plans to impose drastic cuts in the wholesale fees Eircom charges for shared use of its local loop.

In a measure designed to stimulate competition in the under-developed broadband market, ComReg said in a draft decision that it had decided to proceed with a proposal to reduce Eircom's monthly wholesale fee to 39 cent from €9.

There was no comment from Eircom, which has initiated judicial review proceedings against ComReg over separate proposals to cut the wholesale rental price for use of the entire local loop.

ComReg said it had reviewed the price for renting a share of the last mile of Eircom's local loop because consumers who took broadband and voice over the phone line were being charged twice for line rental.

The regulator issued its first draft direction in November at the outset of a consultation period. It confirmed the price cuts yesterday but invited more submissions for a further consultation which will continue until April 18th.

The provision of cut-price line-share products would enable Eircom's rivals to rent broadband capacity without taking control of the entire line.

This would give Eircom's rivals the opportunity to provide only broadband services while leaving the provision of voice services on the same line to Eircom.

"The use of line share has been a catalyst for growth in the provision of broadband services in a range of European countries. Line share has, for instance, played an important role in driving broadband roll-out in France," said ComReg.