The Government has approved the collection of a levy on telecoms firms and could introduce the measure in September, the Minister for Communications, Mr Ahern said yesterday.

The proceeds of the levy will finance the estimated €60 million cost of providing a single high-speed internet line to all schools over a five-year period.

Mr Ahern acknowledged the opposition of telecoms firms to the levy and said he would consider any alternative financing proposals the industry suggested. But he said he had raised the principle of the levy scheme with the European Commission as a means of increasing internet use.

Previously unpublished figures circulated to members of an Oireachtas sub-committee last week show Government advisers estimate it would cost €13,767 to provide five years of broadband access to a single school. There are 4,500 schools in the Republic, suggesting the cost would be about €60 million over a five-year period.

But this figure does not take account of the additional costs of computer hardware, software, installation fees and training. It also does not address the requirement for different speeds and capacity required by individual schools, which is likely to increase the costs substantially.

Meanwhile, Mr Ahern said the ultimate aim of the levy was to make broadband available to libraries and community groups in disadvantaged areas as well.

He said the detail of how the levy would operate had not yet been finalised. Neither had the final cost of the broadband to schools initiative, he added.

Meanwhile, IBEC's telecoms and internet federation, which represents industry, released an interim report yesterday, Getting Ireland Online, which called for an alternative approach to provide broadband for schools.

It said the ICT industry and the Government should consider a joint approach to the issue, which would involve public and private funding for the plan.

The report concluded there is a potential market of about 179,000 subscribers to broadband in the near term.