Eblana Photonics, the Irish broadband technology provider, expects to recruit further staff after yesterday securing a €4.2 million investment in a "series b" fund-raising.

Eblana, which manufactures laser products for broadband systems, said the cash injection would allow it to tap into the rising demand for high-speed Internet access across the Far East, America and Europe.

The company was established in December 2000 to build on the potential of technology developed in a photonics research programme involving Trinity College and the National Microelectronics Centre, UCC and employs 10.

Chief executive Mr James O'Gorman said the funding, which brings total investment in Eblana to €7.2 million, would see the firm expand its operations over coming months. But he declined to say how many extra staff would be hired.

He added: "This investment is a milestone in Eblana's evolution in supplying cost effective high quality products in cost sensitive applications."

The fresh round of investment was led by TLCom Capital Partners, a London based pan-European venture capitalist specialising in the communications and IT sectors. Existing stakeholders ACT Venture Capital and Enterprise Ireland also participated.

TLCom said Eblana was strongly placed to become a global leader in its niche.

"TLCom sees the technology and products being developed by Eblana as key enablers to the emerging optical broadband markets, which will drive the next generation of residential telecommunications services," said Mr Colin Watts, general manager.

Broadband access in the Republic has traditionally lagged behind the rest of western Europe.

Eircom upped the ante last month when it announced a flatrate consumer product would be launched within months.

But the move attracted the wrath of competitors, who accused the former semi-state company of flouting market regulations by unveiling the service before setting a wholesale price for rivals.

Eircom dismissed the accusations as nonsensical.