The State's communications watchdog is investigating the sales practices of a telecoms company following complaints from consumers.

The Irish Times understands that ComReg has launched a formal investigation into NewTel Communications, the Irish subsidiary of an Australian group, Orion, for "cold-calling" consumers.

Cold calls are unsolicited calls made by sales people to potential customers. Companies are allowed to use this technique, but if a recipient tells them that he or she does not want to be called again, then it is an offence to call that person again.

Companies can be fined for this activity.

ComReg has the power to investigate the activities of telecoms companies that make unwanted direct marketing calls.

The regulator stated yesterday that it had launched such an investigation, but did not name the company.

The ComReg statement said it had been receiving exceptionally high numbers of enquiries and complaints in respect of one company.

It is understood that the company being investigated is NewTel, which provides voice and data services to consumers in the Republic. The Irish Times unsuccessfully tried to contact NewTel and its parent group for a comment last night.

NewTel has been operating in the Republic since 1999. Company records show that it made a pretax profit of €1.2 million in 2004.

However, it owed €2.9 million to its parent, Orion, and its auditors, HLB Nathans, stated in the notes to the accounts that it would need support from its parent to continue as a going concern.

Consumers who receive unwanted cold calls can complain to ComReg.