Telecoms capacity upgrade is planned

Plans for a five-fold increase in the State's high grade telecommunications capacity are to be announced by the Department of Public Enterprise within weeks, The Irish Times has learned.

Some 15 projects which connect about 40 towns to the network are set to be approved as a result of the Department's call for applications for grant aid from those interested in installing the fibre-optic cables.

The 15 agreements represent a significant success for the Department, which last year saw some companies return fibre-optic cable contracts. This was due to the downturn in the telecommunications industry and low population counts, particularly in parts of the west.

This time, however, a large number of the successful applicants include local authorities and county development boards, 70 per cent of which are in the Border, Midlands and Western Region. The two largest projects, which between them comprise an investment of more than €33 million (£26 million) are private sector telecoms companies.

About 20 "metro rings" are to be provided around key towns which are earmarked for industrial development. Access to broadband communications will rise from the current figure of about 200,000 customers in the Republic, to about one million.

While the total cost of the planned extension is about €110 million, it is understood that the call for applications has resulted in proposed projects totalling more than €500 million.

Towns likely to be served by the 15 projects include Cavan, Donegal, Sligo, Castlebar and Letterkenny, in the Border, Midlands and Western Region.

In the Southern and Eastern Region, major towns likely to be included are Limerick, Clonmel, Dungarvan and Wexford.

Nine projects are already in place from the last year, representing an investment of €160 million. It is envisaged that the 15 projects will be installed by the end of this year at the latest.

The Government is planning to enact the Communications Regulations Bill before Easter, it has emerged. The Bill proposes to expand the Office of the Director of Telecommunications Regulation to take account of the growing complexity and expansion of the industry.