Telecoms operators will meet Dublin Corporation officials this week to try to avert major increases in road digging charges.

The industry believes an increase in rates will delay the laying of new infrastructure in Dublin and undermine the city's competitiveness.

Dublin Corporation has written to telecoms operators and industry representatives warning them that road digging charges will increase fourfold from January 1st, 2002.

Firms will pay up to £50 (€63.50) to dig one metre of road from next year.

Industry sources said this was comparable to the cost of working in ancient cities such as Rome, which had high costs because of its world-famous archaeology.

The new charges were introduced following a review by the Corporation, which found that digging costs incurred by the local authority were higher than the charges levied on firms.

Mr Tim O'Sullivan, executive manager of the Dublin office of the director of traffic, said there had not been an increase in charges for some time.

Road works also disrupted the long-term integrity of roads, he added.

The new charges will be discussed at a meeting of the utilities and statutory bodies working group this Friday, which includes representatives from industry and several local authorities.

It is expected this will be the last chance for telecoms operators to lobby for a reduction of the charges.

They believe the new rates will prevent them from investing in Dublin and reduce the capital's competitiveness.

Mr Tommy McCabe, director of IBEC's Telecommunications Industry Federation, said yesterday that the charges would have an negative impact on the Government's policy of promoting competitive telecoms services.

"If the costs go up, competing telecoms operators would not dig the roads and there would only be competing telecoms infrastructure in select areas such as the IFSC," according to Mr McCabe.

Telecoms operators are proposing charges at about £12.50 (€15.87) per metre and have completed a report on the proposed charges which it is expected to present at the meeting on Friday.

Relations between Dublin Corporation and the industry have remained fraught since it was revealed last year that 11 telecoms companies were digging Dublin streets.

This prompted the Dublin city manager, Mr John Fitzgerald, to propose financial charges which would force firms to rationalise their activities.

The Telecommunications Industry Federation subsequently threatened to publish a name and shame list of local authorities which were delaying the deployment of broadband services.