Eircom could be in breach of its telecommunications licence if it refuses to cooperate with the industry regulator over the introduction of i-stream, its new high speed internet service.
Eircom has told Ms Etain Doyle, the Director of Telecommunications Regulation that it will not revise the tariff for the new service despite the "serious concerns" that she has expressed.
Last Thursday the ODTR said it was unhappy with the price at which Eircom planned to allow other telecommunications companies use the €127 million (£100 million) network.
"Despite extensive contacts Eircom have failed to satisfy the Regulator that their proposed wholesale prices are cost orientated and non-discriminatory," said the ODTR.
Eircom has been given until this evening to provide more information justifying the pricing structure, and sources close to the regulator have warned that the phone company could be in breach of its licence if it did not comply.
Eircom claims that the regulator has had all the financial information needed to understand the price structure since last July, "but has failed to deal with the matter efficiently".
Eircom took a combative stance over the weekend, saying that the ODTR already had the information it needed and that it would not be providing additional data.
The ODTR has also told Eircom that it cannot launch the service for another three weeks to give the regulator time to study the information.
It is unclear what action the Regulator will take if Eircom does not comply with its directives.
"We will not be revising our prices because they are fair and reasonable and reflect the very substantial investment which we will be making in bringing broadband services to Ireland," said a spokesman yesterday.
Eircom plans to charge a €125 connection fee and a minimum €99 monthly rental fee for the new service which will allow customers vastly improved access to the internet.
Other telecoms companies will have to pay wholesale rates which will be the same connection fee and €75 per month rental.
The ODTR is concerned that the wholesale rates are too high and will discourage competitors.
"We have outlined our plans to introduce an innovative range of DSL-based broadband services which are priced on a cost orientated basis fully in line with our obligations.
The price structure includes an adequate margin across the portfolio," said Eircom yesterday.
The company spokesman said that Eircom would not introduce the service rather than be forced to operate it at a loss.
"Eircom is strongly of the view that the regulator's actions are putting at risk the introduction of broadband services to Ireland and the investment by Eircom of €127 million," he said.
