Eircom is to commit €30 million to enable an additional 319 exchanges for broadband over the next two years, in a move that will allow up to 140,000 extra customers receive broadband.

The move follows the company's announcement five months ago that it would enable an additional 100 exchanges for broadband in 2007. In January, it committed to providing broadband to everyone living within the five main urban areas of Dublin, Cork, Galway, Limerick and Waterford.

Eircom said more than 900 exchanges, representing 96 per cent of the working telephone lines in Ireland, would be connected to a broadband exchange within two years.

"Today's announcement, coupled with the announcement we made in October last year, shows we are serious about our commitment to increase broadband availability in Ireland," Eircom chairman Pierre Danon said.

"There are approximately 200 exchanges that are economically unviable under all circumstances. Eircom welcomes the Government's intention to introduce a tender for the provision of broadband services to areas where the provision of broadband is uneconomic for Eircom and other industry players."

The company said it estimated the broadband penetration rate by population to be 14 per cent, a 4 per cent increase on recent EU figures, but still short of the European average of 15.9 per cent.

Minister for Communications Noel Dempsey welcomed Eircom's move, saying the firm was meeting the commitment it made to increase services. "I recently reiterated to Eircom management that . . . further substantial progress is immediately required in the interests of consumers and in the national interest."