John Doherty, chairman of communications regulator ComReg, has defended eircom's increase in line rental charges announced yesterday.
In an interview with the national broadcaster, he said that the price rises were within agreed price caps, which had been decided last year.
Mr Doherty said that the agreement in 2003 was that eircom would have to keep rises in price either at, or below, inflation rates for the next three years.
He said that at the moment, eircom was in adherence with these rules commenting that in other industries price rises were often higher than the inflation rate.