Eircom has rejected comments by a communications expert that the company was hindering liberalisation and competitiveness in the Irish market.

The Irish Times reported yesterday that US economist Prof Bill Melody said Eircom was acting contrary to the national interest by challenging its industry regulator's ruling that it should cut the rates it charges competitors for using its local network.

Prof Melody is a former chief economist with the US Federal Communications Commission and recently chaired an industry group which studied the issue of opening up the local network.

In a statement, Eircom said that Prof Melody's argument that "competition has been slower to develop in Ireland because of the late start in liberalisation" was incorrect.

The company said figures produced by the Commission for Communications Regulation (ComReg) showed that the rates it charged its competitors for using its network were the second lowest in Europe.

The company also said it was the first incumbent telecom company in Europe to allow competitors to offer consumers a full choice of calls, and would be the second to offer wholesale line rental to competitors.

It also denied Prof Melody's statement that high prices and slow broadband roll-out were hurting inward investment. The company said it offered the cheapest international leased line rates in the EU and said broadband was available across 800,000 customer lines.

The statement added that Eircom had invested €125 million in rolling out broadband.