One of Eircom's chief competitors has reported it to the telecom's watchdog, claiming the former semi-State company's decision to yesterday unveil a broadband service pitched at consumers breached industry regulations.

Accusing Eircom of stooping to "predatory" and "anti-competitive" tactics, Esat-BT said its rival contravened telecommunications legislation by launching the DSL-broadband product before striking a deal on wholesale rates with other operators. And it said Eircom jumped on the broadband bandwagon to divert attention from what Esat-BT argues is a reluctance to provide flat-rate dial-up access.

Eircom rejected the allegations, saying it has not introduced the service, which will offer broadband connection for a monthly subscription of around €45 plus VAT compared with its present rate of €107, but merely declared its intention to so do by March and is continuing to develop a wholesale access package. It added that it hoped to unveil flat-rate fixed dial services by early summer, subject to regulator approval.

The Commission for Communication Regulation was reluctant to become embroiled in the row, saying only that it looked forward to Eircom developing wholesale services in parallel with its consumer product over coming weeks.

The Government said cheaper broadband access was an important first step but added it was essential that affordable flat-rate dial-up service was launched without delay.

Eircom said broadband roll-out would extend to one million lines across the Republic by year-end, encompassing towns included in the Government's national spacial strategy. By September 2004 the roll-out will reach approximately 150 exchanges covering towns throughout Ireland with more than 2,000 telephone lines, said Mr Phil Nolan, Eircom chief executive.

Dismissing the announcement as "empty rhetoric", Esat-BT said take-up of its own consumer broadband service, launched late last year and priced at the same level as that envisaged by Eircom, had been disappointing. It is obvious that the public wants flat-rate dial-up access rather than broadband, a spokeswoman said.

However, Eircom said extensive market research conducted over past months suggested competitively priced broadband was viable. It is estimated that under 3,500 digital subscriber lines have been sold to businesses and residents since the service was introduced last year, the lowest figure in the EU.