Investment:The Department of Communications, Energy and Natural Resources will examine how private-sector investment in broadband can be encouraged as part of an overhaul of policy in the sector.

A briefing document prepared by senior department officials for new minister Eamon Ryan, reveals that the policy review is taking place. An edited version of the document was released by Mr Ryan's department.

A department spokeswoman confirmed a "policy document" was being prepared but said it had not been decided whether it will take the form of a Green Paper.

"The document will lay out the various ministerial options available to facilitate the development of next-generation networks (NGNs) and their roll-out by the private sector," she said.

The briefing document states the policy paper will guide the allocation of the €435 million that has been earmarked for the communications programme in the current National Development Plan, which covers the period 2007-2013.

The document does not rule out further Government intervention in the broadband market.

"Where it is clear that market failure exists in the communications sector in terms of access to affordable broadband, more direct Government intervention will be required," it states.

Liam O'Halloran, chairman of the Alternative Operators in the Communications Market (Alto) which represents telecoms operators other than Eircom, welcomed the news the department is looking at policy in regard to broadband.

"We welcome any in-depth study which looks at the options for the development of the market, given that we are not as advanced as we need to be in things like broadband," said Mr O'Halloran. He said Alto had requested a meeting with Mr Ryan to discuss his members' views on NGNs. The policy document is expected to be completed by the end of the year.