ESB will complete construction of a 193-kilometre fibre optic network between Limerick and Dublin early next year, as part of a plan to build a State-wide telecoms infrastructure.
The fibre link is part of a wider ESB strategy to move back into telecommunications following the sale of Ocean to British Telecom earlier this year.
The company is talking to several telecoms companies, with a view to selling capacity on its network and will establish a wholesale telecoms business shortly.
It is understood the Office of the Director of Telecommunications Regulation has received an application for a telecoms licence from ESB International (ESBI), the subsidiary which is developing its broadband strategy.
The ESB is using a similar technology and strategy to UK operator Energis, by wrapping fibre optic cabling around the earth wire on its existing overground electricity network.
This technique enables the firm to avoid digging up streets to lay underground cabling, which reduces costs and disruption. It also enables a speedier deployment of fibre.
The company is laying three kilometres of fibre per day and expects to complete the Limerick to Dublin network by February.
ESB is using a spiral wrap technique, which deploys 48 separate fibres, each with two-and-a-half gigabits of connectivity. This will enable high-speed data transfer over its network.
The company has also approved a second stage in its national fibre roll-out, which will involve building a southern fibre loop. This network will provide connectivity to Limerick, Cork, Waterford, Wexford, Arklow and back to Dublin.
A third plan, to roll out a network across the west and north of the Republic, which would include Galway and may even stretch as far as Donegal, has also been proposed.
However, it is understood this proposal may be conditional on the success of an application for grant aid made to the Department of Public Enterprise.
The application was submitted under an EU competition, towards which the Government has allocated £150 million (€190.6 million) in an attempt to encourage e-commerce in the regions. The results of the competition are expected shortly.
IDA Ireland is keen to encourage ESB's broadband plan as a means of promoting its own regional roll-out of e-business.
Although more than 1.5 million square feet of co-location and Web hosting space have been announced for the Republic, most of these facilities are planned for Dublin.
"We'd like to see a fibre network rolled out into the objective one regions and the ESB plan could be a vehicle for this," said an IDA spokesman.
ESB's move back into the telecoms arena is being guided by ESBI. However, it is understood the proposed structure and ownership of a new subsidiary has not yet been decided.
Earlier this year, ESB made a profit of about £100 million on the disposal of its stake in telecoms firm Ocean. This deal was non-exclusive, which means that the ESB is free to enter into arrangements with other telecommunications providers.
ESB's move back into telecoms comes at a time when several European utilities are building national broadband networks on their existing infrastructure.
Energis constructed a 3,000kilometre overhead fibre network in the UK within 18 months. This gave the operator a core backbone network, which was later extended into metropolitan areas.
