The Republic was named as one of Europe's slowest movers on rolling out broadband at the launch of a new EU strategy to boost the uptake of high-speed internet technology. The EU strategy highlights that the Republic has the second-lowest coverage of broadband technologies in both urban and rural locations out of 17 states surveyed.

The "Broadband for All" policy document published yesterday by the European Commission promotes the use of state funding to roll out new networks capable of supplying broadband technologies. It also suggests strategies that member states should consider employing to close the "broadband gap" in Europe between urban and rural areas.

But the key message behind the new broadband strategy is that state aid can be used by member states to build advanced broadband networks in rural and outlying regional areas, "for example in the form of public-private partnerships to support the construction of open networks," according to commissioner Nellie Kroes.

The commission is promoting the use of its €70 billion rural development fund to co-finance broadband projects in rural areas between 2007 and 2013. The commission's decision to authorise the Government's €170 million project to build fibre networks in 120 towns across the Republic is specifically mentioned.

The commission document is critical of the slow uptake of broadband in the Republic, which it describes as lagging behind along with the 10 new member states. Uptake is hindered by the highlighted fact that the Republic has the second-lowest broadband coverage of 17 states surveyed, ranking it ahead of only Greece.

Belgium, Denmark, the Netherlands and Luxembourg all have 100 per cent broadband coverage in both rural and urban areas. The Republic had national coverage of 71 per cent and just 32 per cent in rural areas in January 2005.