ComReg has given the clearest indication yet that the regulator will use new powers it received under the Communications Regulations (Amendment) Act against Eircom, if local loop unbundling (LLU) is not delivered before the agreed September deadline.
"There aren't any circumstances that we would find acceptable grounds for a delay," ComReg commissioner John Doherty told The Irish Times.
LLU is the process whereby Eircom exchanges are opened up so that other telecoms operators can locate their equipment in them and provide services to customers directly.
The introduction of LLU has been EU policy since 2000 but its introduction in Ireland has been delayed due to lack of agreement between Eircom and ComReg.
ComReg's new powers mean it can fine Eircom up to €5 million if it does not deliver full LLU as agreed between both sides in May.
Mr Doherty said that, if other operators had access to Eircom exchanges on economic terms, competition in the market would be significantly enhanced. "The lack of LLU has been denying consumers the choice they ought to have," said Mr Doherty.
He also said he did not agree with Eircom chairman Pierre Danon who has maintained that LLU was not suitable for the Irish market.
An Eircom spokesperson said that the company was still confident it "would fulfil what it signed up to" in May.