The market for wholesale unbundled access to local loops is not competitive, according to the Commission for Communications Regulation (Comreg).
ComReg has said that eircom has been designated as having Significant Market Power (SMP) and is now subject to a range of regulatory obligations.
These include the requirement to provide Local Loop Unbundling on cost-oriented efficient operator prices and an obligation of non-discrimination, transparency and accounting separation.
ComReg's findings follow national consultation and consultation with the Competition Authority and has also notified its findings to the European Commission which has accepted its notification.
Under new European legislation, ComReg is required to review 18 identified relevant markets to establish whether any entity holds Significant Market Power.
The telecoms watchdog can then impose obligations on companies to address competition problems.
The market for wholesale unbundled access is the latest review which ComReg has concluded.
Other reviews in the fixed market include Wholesale Broadband Access, which will be notified to the European Commission shortly.