ESB Telecom switched on the first part of its €50 million national broadband fibre network yesterday in a move that should lead to faster internet services and cheaper prices for telecoms in the regions.
The network will enable the ESB division to become a "carriers carrier" - a firm that sells wholesale telecoms and internet capacity from its network to other telecoms firms.
Its first customers are likely to be companies such as WorldCom, Esat BT and a range of wireless firms that want to provide telecoms services outside Dublin.
But ESB also plans to use its State-wide broadband network to gain a foothold in the market for third-generation (3G) mobile phone services.
Third-generation mobile technology will enable firms to provide a range of video and internet services to handheld devices.
It is understood ESB Telecom has signed a letter of intent with Esat BT to join its bid to supply broadband capacity on its national network to 3G licence holder Hutchison 3G Ireland.
ESB Telecom also plans to offers its portfolio of 400 tower sites to Hutchinson to help it build its nationwide mobile network.
ESB Telecom yesterday switched on the "southern loop" of its network, which runs between Dublin, Limerick, Cork and Waterford. The extra competition that its network will offer to these locations should reduce the cost of national broadband capacity.
The traditionally high cost of broadband connectivity between Dublin and other national towns and cities has reduced the attractiveness of regional locations for private-sector investment. In some cases internationally, connectivity provided by Global Crossing's linking the Republic to more than 30 international cities has been cheaper than buying capacity between Dublin and Limerick.
ESB will also shortly move all its internal communications requirements to the network.
At the official launch of the network in Limerick yesterday, the Minister for Communications, Mr Ahern, said the Government recognised the vision of the ESB board in the development of such a comprehensive network.
He said the construction of the ESB fibre network was an element that would help deliver a knowledge-based society and attract inward investment in the Republic. However, he said the company should keep broadband costs low to increase volume.
ESB Telecom received €16 million grant aid to help fund the national network from the Government and the European Union under a special grant programme designed to assist the uptake of e-commerce.
The national network, which runs in a figure of eight between Dublin, Cork, Galway, Dundalk, Waterford and Buncrana in Donegal, should be completed by the autumn.
ESB's network was rolled out much quicker than standard fibre networks can be rolled out because it did not require any digging up of roads.
