Telecoms provider Eir is increasing the price of its broadband and phone packages for residential and business customers.

The higher charges, which will be reflected in bills from April 7th, are likely to cost the average customer an additional €3 a month, or €36 a year.

The company said it was raising the price of monthly subscription fees for those with bundled services and the cost of its call set up service.

Businesses using Eir face up to €10 extra per month, or €120 a year, exclusive of VAT as a result of the changes.

The company said the price changes would affect approximately 490,000 residential customers and 63,000 business customers.

However, the change will not affect new customers that have signed up to Eir within the last three months.

The company, the State’s largest telco, offers bundles of services, including landlines, broadband, television and mobile phone services.

A spokesman said even with the price rise, the company was still offering the “best value” triple play and quad play bundles.

“Our bundles are getting bigger, we’re offering more value,” he said, noting the company’s standard €30 a month triple play bundle was one of the most competitive in the market.

The move comes in the wake of a 5 per cent price hike by rival Virgin, formerly trading as UPC here.