BROADBAND PROVIDER Magnet Networks says it has formally complained to ComReg, the commission for communications regulation, over what it claims are anti-competitive pricing tactics by Eircom.

Mark Kellett, Magnet's chief executive, said the prices Eircom was allowed to charge for wholesale products by the regulator was making the market uncompetitive for investment.

Magnet feels there should be a larger price differential between Eircom's wholesale products, which require a relatively low investment by other telcos reselling them, and so-called local loop unbundling (LLU).

LLU involves placing equipment in Eircom phone exchanges in order to take control of lines and so requires a significantly higher level of investment.

"Eircom have been allowed to price-squeeze the LLU providers," said Mr Kellet.

He said Magnet had considered mounting a legal challenge but as a small company it could not bear the costs associated with this.

Last night a ComReg spokesman said he was not aware of any formal complaint from Magnet.

Mr Kellet was speaking following the launch of a high-speed 24Mbit/sec service by Magnet. BT also recently introduced 24MBit/ sec broadband using LLU.

Magnet says it has unbundled 39 exchanges in Dublin, Cork, Galway, Limerick, Waterford and Portlaoise to provide the service.

"There certainly has been progress in the practical elements of LLU but key challenges remain," said Mr Kellet. He also took issue with a recent promotion by Eircom where wholesale providers were given one month free on new broadband connections.

An Eircom spokesman said it was obliged to offer a wholesale version of all its retail offers.

Magnet received an equity injection of €55 million earlier this year from its US-based parent Columbia Ventures Corporation (CVC).