The State's telecoms watchdog, Comreg, took a step closer to resolving a row that has delayed the opening up of dominant player Eircom's network to its rivals.

In the latest development in a dispute involving Eircom, Comreg and the other companies in the Irish market, the regulator issued a statement detailing the initial steps that the dominant operator will have to take to allow competition.

In response, Eircom said last night that it had already begun taking these steps. "This progress is reflected in today's milestones announced by ComReg and originally proposed by Eircom," the company claimed.

Its biggest competitor, BT Ireland, welcomed the move. Chief executive Danny McLaughlin said the proposals looked great on paper, but warned that "each and every milestone has to be met".

Telecoms companies and the regulator will resume talks on the issue at a meeting that ComReg is convening today.

The key sticking point for Eircom's rivals is the manner in which it proposes to allow them access the link between its exchanges and the individual consumers and businesses on its network. Its competitors need to get direct access to this link in order to offer their own services to customers.

But most Eircom subscribers cannot switch immediately from that company to another while at the same time keeping their numbers.

The row is blamed for the slow development of high-speed or broadband services in the Republic, which in turn is hindering the State's ability to attract investment.

Under ComReg's proposals, by July 31st, the regulator will outline steps that will allow customers to switch seamlessly from one service to another. By August 8th, Eircom will have to allow customers to keep their numbers.