Telecoms regulator Ms Etain Doyle will stay on as one of a three-person commission under a new regulatory structure. The decision of the Minister for Communications, Marine and Natural Resource, Mr Ahern, was announced in advertisements seeking applications for the two other seats on the commission.

The advertisements for the €121,087 a year posts bring to an end speculation about the future of Ms Doyle.

It had been thought she might have to apply for one of the posts on the commission in open competition.

The news will come as a blow to the telecoms industry, which has had a difficult relationship with Ms Doyle and which had sought a fresh start with the new commission.

Earlier this month, IBEC's Telecommunications and Internet Federation urged the Minister to use the appointment of a new commission to "create a fresh agenda ... with the recruitment of external candidates with relevant business or commercial experience".

However, Mr Brendan Butler, director of IBEC's ICT Ireland, yesterday welcomed the news. "There are two schools of thought on this but we would be pleased that Etain Doyle will be one of the three commissioners. With her experience and knowledge, it would have been a pity to lose her."

Mr Ahern said: The establishment of the Commission for Communications Regulation will provide a sound regulatory framework for the electronic communications sector which will maximise effective competition in the shortest possible timeframe."

The new commission will be responsible for regulating and licensing the electronic communications sector, regulating the postal sector and managing the radio frequency spectrum.

It will have the power to fine operators up to 10 per cent of turnover or €4 million for breaches of licensing conditions.