Bord Gáis, the State-owned gas company, plans to build more than 600 kilometres of fibre optic cable across the State to extend its reach in the telecoms market, writes Jamie Smyth, Technology Reporter

The firm, which already provides limited telecoms services through its Aurora Telecom subsidiary, will use the fibre optic cable to link networks in Dublin with the midlands and west.

It is also planning to extend its telecoms network across the border into Northern Ireland and link its Dublin city network with Belfast before the end of the year.

The state-of-the-art fibre optic network will increase the provision of broadband to the regions and should offer firms opportunities to locate outside of Dublin.

Bord Gáis this week issued a tender in the European Journal seeking offers to install, maintain and supply the fibre.

It is also seeking other types of telecommunications equipment such as telehousing point of presences (POPs), which are required to provide telecoms services.

The value of the contract is not included in the official tender documents, but it is almost certain to run into millions of euro.

A Bord Gáis spokeswoman confirmed the State firm had begun a procurement process for the installation of fibre optic cable across a number of routes where Aurora had telecoms assets. But she said the proposed routes, quantities and timing of the project has not been confirmed.

Aurora, which was previously a joint venture between Bord Gáis and Telenor, has built a 42 kilometres fibre network in business districts in Dublin in 2002.

Ducting for fibre optic cable has also been laid along the route of the gas pipeline to the west, extending 253 kilometres from Ballough to Clarecastle.

The carrying value of Aurora's assets at December 31st, 2002, amounted to €6 million.

It is understood Bord Gáis will install new fibre alongside its gas pipeline to the west, which passes through Tullamore, Mullingar, Galway, Ennis and Shannon.

It is also likely to install fibre optic networks along new gas routes proposed from Belfast to Derry and from Galway to west Mayo.

No spokesman from Aurora could be contacted to discuss the firm's telecoms plans but industry sources said it had already supplied some telecoms customers with fibre in Dublin.

Aurora is likely to face stiff competition from other national providers of telecoms services such as Esat BT, Eircom and ESB Telecom, which introduced its new national network in March 2003.