The cost of telephone calls will go up this year by 5 per cent - matching the current rate of inflation - following a decision by the Commissioner for Communications.
The move follows a steady decrease in phone call prices over the past three years and a period of more recent lobbying for a change by telecom companies in the light of intense pressure in their sector.
But Commission chairperson Ms Etain Doyle told the telephone companies that any significant increases in line rental charges would have to be accompanied by reductions in call prices.
She said new rules now being applied would protect the price reductions consumers had obtained, but allow competitors of Eircom to compete on price in a way that had been impossible under the old system.
The aim, Ms Doyle added, was to "strike the right balance between the interests of consumers and the long term sustainability of the industry."
PA