Almost 250,000 cable television subscribers face price hikes of up to 29 per cent later this year.

The operator Chorus has applied to the regulator for permission to raise its charges to fulfil its pledge to roll out digital television and improve its poor customer service record.

In a detailed plan published yesterday, telecoms regulator, Ms Etain Doyle, confirmed Chorus was proposing to increase prices by between £39 (€49.50) and £20.28 per year in its franchise areas.

The largest annual price rises are proposed for Cork, Shannon and Limerick while Buncrana in Co Donegal will face the smallest price increase.

The price increases, which average 14 per cent for all Chorus' customers, would be the first since April 1999. Under the Chorus proposals, customers' monthly subscription would range from £9.50 to £18.50.

The increases would not affect the digital television customers of Chorus, a joint venture between Independent News & media and Liberty Media.

Ms Doyle, who must sanction any price increase for cable television services, said she would consult on the proposed price increases and issue a determination by the end of September. However, it is understood the regulator will approve the increase. She has already decided to consider the application outside a standard adjudication framework set out by her own office.

"No one likes to pay more for services, but inflation compounded over a number of years has been significant and the costs of capital investment in network upgrade, whether analogue repair or digital upgrade, are substantial," said Ms Doyle.

The regulator also published a major review of Chorus's operations yesterday following its failure to introduce digital television in several areas contrary to the terms of its digital cable licence.

This document lays out a new timetable for Chorus to complete its cable network upgrade, which would enable customers to receive digital television.

The package of measures published by the regulator yesterday would also remove Chorus's exclusive rights to broadcast digital television in its franchise areas from March 1st, 2002.

Chorus had previously fought hard to maintain this exclusivity, which is outlined in its licence until January 1st, 2004. This was intended as means of warding off potential competitors while a firm invested in new technologies.

Telecoms consultant, Mr Enda Hardiman, said yesterday it was possible that other operators would enter the Irish market to compete. However, this would be difficult, he added. "Cable operators all over Europe are under severe financial pressure," he said. "Although perhaps some local players could enter."

As part of the package of measures published yesterday, Ms Doyle said Chorus had committed to invest a further £63 million in the company over the next three years.