The battle for business broadband customers intensified further yesterday.

Following the announcement by O2 at the start of the week that it had become the latest mobile operator to offer broadband, Magnet Business has introduced what it claims is the fastest service currently being offered over phone lines.

The new broadband product, which is available in the "main business districts" of Dublin, Limerick, Cork, Galway, Waterford and Portlaoise, provides download speeds of 10Mbits/sec and upload speeds of 1Mbit/sec.

The service is uncontended, which means the connection is not shared with any other users. It costs €165 per month.

Magnet Business sales and marketing director Donal Hanrahan said the fastest service being offered by Eircom over the same lines is 6Mbits/sec.

"Irish businesses don't need to wait for some woolly future concept such as next generation networks currently being touted by Eircom, ComReg and the Government as the answer to our broadband needs," said Mr Hanrahan.

Magnet is offering the service using the local loop unbundling (LLU) process, whereby it locates its own equipment in Eircom telephone exchanges.

The company has invested €65 million to date in building out its network and is now the State's third largest business broadband provider.

Magnet Business was established following Columbia Ventures Corporation's (CVC) acquisition of wireless specialist Leap Broadband and business internet service provider Netsource. Other CVC assets in Ireland include Hibernia Atlantic, the owner and operator of a 12,200 km-long transatlantic fibre-optic network connecting Britain, US, Canada and Dublin.