UPDATE 1-EU executive orders cut in Belgacom phone fees

(Adds more detail, Belgacom reaction)

BRUSSELS Oct 23 (Reuters) - The European Commission has told Belgium's telecoms watchdog to bring down fixed-line prices charged by the country's dominant operator, Belgacom (BCOM.BR), immediately.

"The lack of effective competition and high tariffs in the Belgian markets for fixed voice calls could result from an ineffective implementation of telecoms regulation," the European Union executive said in a statement.

A Commission spokesman said it cost 21.2 euro cents to make a three-minute local call in Belgium compared with an EU average of below 10 euro cents.

Measures taken by Belgian telecoms regulator BIPT have not yet led to competitive prices and it has a year to compile an analysis of the sector for the Commission.

"BIPT should also revise its price control obligation imposed on Belgacom, the telecoms incumbent, to allow Belgian customers to make cheaper calls as soon as possible," the statement added.

Belgacom said its prices were not excessive, that it used a single national tariff and that calls were free at certain times.

EU Telecoms Commissioner Viviane Reding said fixed-line call prices in Belgium were among the highest in the 27-country EU and had barely moved in the past three years, but Belgacom's market share had risen.

"This is simply not acceptable for Belgian consumers. The European Commission will keep a very close eye on the Belgian market. We ask the Belgian telecoms regulator to come back to us on this issue within a year's time," Reding said.

The Commission spokesman said all national telecom regulators have the possibility to use tools such as a price cap on retail tariffs.

"We recommend that the Belgian regulator makes full use of the instruments available to them under EU telecom rules," the spokesman said. (Reporting by Huw Jones and Philip Blenkinsop, editing by Dale Hudson and Elaine Hardcastle)