The  European Space Agency has agreed to co-fund an innovative pilot project that will provide high-speed internet access to a range of public-sector bodies and citizens in the south-west region.

The project, which is being co-ordinated by the South West Regional Authority, will use satellite technology to deliver high-bandwidth broadband to rural and peripheral areas of the south west.

The European Space Agency Telecommunications Programme has agreed to co-fund the pilot, which will cost about €455,000 over the next 12 months. If the project is successful, the South West Regional Authority may apply for Government funding to extend the project in the region, said Mr John McAleer, director of the regional authority.

"This is at the cutting edge of new technologies and, if successful, will very quickly deliver high bandwidth to towns throughout the region, at very affordable prices," he said.

Mr McAleer said several initiatives would be set up in Cahirciveen, Killarney and Bantry to connect public agencies using high-bandwidth technology.

Satellite technology will be used to deliver uplinks and downlinks, in delivering Government and public services, education, training, business development and health/medical information.

This will enable public bodies in Cork and Kerry that take part in the pilot to send and receive large files over the internet faster than currently possible. Projects invited to take part in the pilot include the West Cork Adult Education Service and the Postgraduate Medical and Dental Board.

The high-speed satellite links will also be used to set up a public local area network in Cahirciveen, accessible to locals for a monthly fee of €80, said Mr McAleer.

This local area network will deliver high-speed internet connections to people who are given or purchase a signal receiver about nine inches high and a special network card to attach to their PCs.

Mr McAleer said the project aimed, by providing broadband, to encourage the development of technology centres in towns and regions around the region. He said satellite technology would provide a more cost-effective way of delivering internet outside of the larger towns because of the high cost of laying fibre in the ground.