MOBILE OPERATOR 3 Ireland will be awarded the contract for the Government's National Broadband Scheme (NBS) which will subsidise the delivery of broadband to the areas of the country that currently cannot avail of a service.

Minister for Communications Éamon Ryan yesterday confirmed that 3 had been selected as "preferred tenderer". Full details of the scheme, including areas covered and the cost of the service, will be announced early next month following the conclusion of contract negotiations.

It is not known how much the contract will be worth to 3 but the Government's 2009 Budget set aside €45 million in capital funding for communications infrastructure. This is primarily for the NBS but also includes a scheme to deliver high-speed broadband to schools.

Eircom, the only other shortlisted bidder following BT's withdrawal last summer, issued a statement last night saying it was "extremely disappointed" with the decision. It said its bid would have delivered geographic coverage and speeds "which exceeded that required by the Government".

Although the scheme has been plagued by delays, Mr Ryan recently said the NBS would be completed by mid-2010.

"It is imperative that we have universal broadband coverage in Ireland, for foreign investment, for competitiveness and for our own businesses and householders," said Mr Ryan. "Broadband availability will be central to our economic recovery."