Eircom yesterday accused the communications regulator of abusing its position and said it had no option but to seek a judicial review against the group's latest ruling.

The firm said it planned to challenge an attempt by the Commission for Communications Regulation (ComReg) to take away its right of appeal to a new appeals panel for telecoms firms.

Earlier this week, Eircom made an appeal to the Electronics Communications Appeals Panel - a body set up by the State to oversee decisions by ComReg - over a direction on "unbundling".

"Unbundling" is the name given to a process through which Eircom's rivals can gain access to the firm's network to provide services to their own customers.

Across Europe it is considered a crucial step to enable greater competition and the introduction of new innovative broadband and voice services. In the Republic, just 2,500 lines out 1.6 million have been opened to rivals.

ComReg has accused Eircom of frustrating the "unbundling" process in the Republic and has issued a series of directions to Eircom to make it easier for competitors to "unbundle".

Following Eircom's decision to appeal its directions this week, ComReg on Wednesday issued an enforcement order on the firm.

In this order, ComReg threatened Eircom with legal action and financial penalties if it did not comply with its directions.

Eircom is likely to make an application to the High Court for a judicial review either today or tomorrow. This review will seek to establish that ComReg is attempting to take away Eircom's right to "stay" rulings until its appeal is heard by the appeals panel.

Mr David McRedmond, Eircom's commercial director, said that ComReg was abusing its position and had placed Eircom in an extraordinary situation. He said ComReg might view the appeals procedures as a nuisance but it didn't give it the right to negate an appeal.

He said Eircom would have no option but to seek a judicial review, unless ComReg withdrew its enforcement order.

ComReg would not comment.