DUBLIN, June 1, 2010 /PRNewswire/ -- Recession hit consumers in Ireland were left reeling yesterday after former State monopoly Eircom announced that phone and broadband bills would jump by at least 3 per cent from July 1st.

In a move that was sharply criticised across the country, 4G WiMax provider Imagine confirmed that the excessive Eircom prices has led thousands of customers to switch to Imagine's better quality and cheaper phone and broadband network.

It has also been confirmed that Imagine WiMax customers are now automatically saving over EUR400 per year when they switch to Imagine, in addition to benefitting from lower broadband and phone bills.

Brian O'Donohoe, Managing Director of Imagine Communications Group, said that the latest price hike represented a lost opportunity for Eircom to offer real value to customers.

Eircom now charges Irish consumers the highest line rental cost in the world and has now decided to increase call costs as well, O'Donohoe said.

It's ironic that a couple of days after the OECD critisised the Irish regulator for failing to reduce Eircom's dominance in the Irish Market, that Eircom goes out and yet again increases its prices, he said.

Imagine has launched WiMAX in many areas of country and is currently rolling out in 15 new towns each month offering a service that is priced at 50% cheaper than Eircom.

Imagine has confirmed that WiMAX sales are exceeding expectations with thousands of people switching from Eircom to save money during the recession.

Echoing the Imagine comments, Mr. Dermott Jewell of Ireland's Consumer Association, said that the price hike represented a backwards step.

I'm amazed that they would even have considered an increase at this time, he said.

Mr. Jewell said that Eircom may have shot themselves in the foot with this price increase, as it will trigger consumers to switch to another provider.

Eircom said last week that sales had slipped by 9 per cent, and group revenues were down by EUR1.38 billion.

Imagine is making high speed broadband available and affordable to consumers across Ireland with 30 new locations now being rolled out each month.

For further information:

Brian O'Donohoe, Imagine: +353(0)1-2411421

James McDonald, Model Communications, +353(0)1-8814038

SOURCE: Imagine

CONTACT: For further information: Brian ODonohoe, Imagine:+353(0)1-2411421; James McDonald, Model Communications, +353(0)1-8814038