The cost of certain telecoms services - especially for residential customers - have remained largely unchanged in the last year, according to a new report released by the Office of the Director of Telecommunications Regulation (ODTR) yesterday.

The director, Ms Etain Doyle, whose office is locked in a legal battle over the decision to award the third mobile licence to Meteor, also says she will not have to pay damages either to Meteor or to Orange, which objected to the licence award. The case is before the Supreme Court, to be heard in January, but Ms Doyle said her legal advice was that neither company could sue her office if they do not get the licence.

The ODTR report says that although the business market - which has been the main target of competition - has seen some dramatic reductions, tariffs in the residential sector have not fallen so rapidly.

Other countries have reduced tariffs in these market sectors far more rapidly and the Republic's position has actually deteriorated. The report examines the market one year after the full liberalisation of telecommunications threw open the residential sector to full competition on December 1st, 1998.

The ODTR said Eircom will be subject to further price caps of between 7 and 9 per cent per year over three years, as it is the dominant player which leads the market on price.

The Regulator also said a mechanism should be put in place whereby a decision made by her can be implemented, even if a company objects to it. At present, when an objection is lodged, the decision is suspended until a full hearing takes place.