Eircom has set itself a target of signing up 500,000 broadband customers by the end of 2007. It follows the company meeting its current target - 100,000 customers by year end - some six weeks ahead of schedule.

The company said it was now signing up 3,000 customers a week thanks to strong take-up of its free three month trial offer. Three quarters are direct customers of Eircom, with most of the remainder signing up via Esat BT.

Mr David McRedmond, the commercial director of Eircom, said the new target would bring Ireland above the European average for DSL penetration, which is predicted to be around 27 per cent of lines. He said the company expected to break even on broadband some time next year.

Eircom's new target falls short of the objective set for the industry by the Minister for Communications, Mr Dempsey. He told a recent conference that he wanted to see the 500,000 target met by 2006.

Eircom said yesterday there could be 100 per cent availability by 2007 if the Government redirects its efforts towards the 10 per cent of the markets that its is not economic for Eircom to serve.