The Government plans to announce two multimillion euro projects to promote greater competition in the telecommunications sector in coming days.
Following a review of the State's telecoms requirements, it is expected that the Department of Finance will amend parts of an exclusive deal for data services made with Vodafone and Eircom.
This €30 million annual contract locks State Departments and a range of public bodies, such as health boards and local authorities, into using internet and data services supplied by both firms.
The deal was signed more than two years ago with the Department of Finance and is scheduled to run until next year. But following pressure, from among others the Minister for Communications, Mr Dermot Ahern, other telecoms firms will soon be able to bid for Government business.
A Department of Finance spokeswoman would not comment on the details of the contract but confirmed an announcement would be made shortly.
However, Vodafone said last night that it had already been informed that parts of the Government's data contract would be opened up to competition.
The mobile part of the State's data deal is estimated to be worth just €5 million per year, although it is growing as more civil servants use newer technologies.
But it remains unclear if the larger portion of the data contact held by Eircom, worth some €25 million, will also be open to competition by other fixed-line firms.
An Eircom spokeswoman said the company did not know what decision had been made by the Department of Finance.
Meanwhile, Mr Ahern will shortly announce funding for an extra 41 towns to build fibreoptic telecoms networks.
Athenry, Bantry, Kenmare and Skibbereen will be among 41 new towns that will be invited to apply for State funding to construct the telecoms networks. The decision to invite calls for proposals from local authorities in the 41 towns follows the recent completion of 19 networks in large towns throughout the State.
Under the Republic's broadband strategy, a further 51 towns will be able to apply for funding to build networks before 2007.
It is expected to cost about €140 million to build fibre networks in the towns by 2007.
