The talks centre on local loop unbundling (LLU), the process through which rival operators are able to use Eircom's network to provide telephone and internet services to customers.

They will resume in the coming days despite an announcement by BT last week that it was withdrawing from the industry forum because of a lack of progress.

Following the intervention of both the communications minister Noel Dempsey and the regulator, Comreg, BT has decided to return to the negotiating table.

It is believed that minister Dempsey's announcement last Thursday that he would amend the upcoming communications bill to provide greater powers to Comreg to enforce competition in the telecoms sector prompted BT's volte face.

Neither Eircom nor BT would comment ahead of this week's meeting but Charlie Ardagh, marketing director of Magnet Networks, said there was still a great deal of frustration among alternative providers despite minister Dempsey's move.

"Nothing has really changed in our view, until we see meaningful actions, " he said.

One of the key sticking points in the negotiations is the slow pace at which Eircom is prepared to implement an automated system for switching customers to competitors' services once lines are unbundled from the local exchanges.

Eircom has said this process would cost 15m to implement and that it could take up to 18 months, which its competitors view as an unacceptable delay.