BT's turnover in Ireland rose by 7 per cent last year to €1.09 billion in the year to the end of March. No breakdown of its revenues was given but BT said its operation in the South accounted for the majority of its turnover for the first time.

Danny McLaughlin, BT Ireland's chief executive, said the business in the Republic achieved double-digit revenue growth, while its Northern Ireland operation posted a single-digit rise.

In terms of broadband, BT said the number of residential connections in Northern Ireland rose by 45 per cent to 107,000, while south of the Border the number of subscribers increased by 135 per cent to 62,000. This makes it the joint second-biggest broadband operator here alongside UPC Ireland and behind Eircom.

Mr McLaughlin said the company would shortly open its first "new generation" unbundled exchange in Tallaght, which would enable the company to offer an eight-megabyte broadband product as standard. This would be a faster speed than offered by most of its competitors.

"There's a better environment now for new investment [ in broadband]," Mr McLaughlin said.

Across the island, BT plans to invest €60 million in broadband this year. Mr McLaughlin, who will leave the company next month, said BT planned to offer television, video on demand, personal video recorders and voice calls over broadband.

"Bolt-on services is the way to make broadband pay for itself," he said.

BT said it was also the second-biggest networked IT services provider in Ireland. The company secured contracts with a number of high-profile companies, including Airtricity, the Irish Dairy Board and Bank of Scotland (Ireland).