Dublin City Council will enter the commercial telecoms market this year by appointing a firm to operate and sell its 170 kilometre fibre network.
The authority will offer excess capacity on its network - which currently carries mostly traffic signalling data - to small and medium-sized businesses and telecoms companies in Dublin.
The extra revenue generated from the network would pay for its maintenance and running costs, and may provide extra cash for the council.
The initiative should promote greater competition for high-speed internet services in the city and could ultimately reduce broadband costs for end-users.
A tender published recently in the European Journal shows the council will also contract the successful firm, known as a managed services firm, to manage a new broadband network at the Digital Hub.
This €3 million fibre network is scheduled for completion in June and was co-funded by the Government as part of the redevelopment of the Liberties area. This network will be offered at low cost to businesses at the location in an attempt to encourage digital media firms to invest in the Digital Hub area.
Mr Michael Stubbs, Dublin City Council executive manager, said the fibre network extended right out to the M50 in some areas and followed the routes of most quality bus corridors.
The network carries traffic signals and CCTV signals but spare capacity would be offered to businesses and telecoms companies, he added. The network should not just be seen as a business opportunity for the council as it could also be used to link educational institutions if it was determined there was demand, said Mr Stubbs.
Dublin City Council speedily built its fibre network in recent years, following the introduction of regulations that forced telecoms firms to provide two cables to the council every time they dug up the roads. The regulations also enabled the council to build ducting to provide other telecoms firms with an opportunity to lay fibre without digging the streets.
The managed services firm that is chosen to manage the network will also have responsibility for operating a network operations centre based at the Digital Hub. This will offer a range of managed services to firms such as internet hosting, co-location, database management and network storage.
The contract offered by Dublin City Council to the managed services entity will be for three years. It should come onstream before a similar Government contract is awarded to manage its €60 million public network, which is being built in 19 towns throughout the State.
