The Republic's broadband penetration is lagging significantly behind the rest of the European Union, according to a new report. Brandon Glenn reports.

Up to January last, broadband, which delivers information at high speed over the telecommunications network, could be accessed by only 0.9 per cent of the population.

Overall, 6.1 per cent of the population in the 15 current EU countries had access to broadband, according to the report, prepared by the Commission of European Communities.

The report was presented at a telecommunications conference in Dundalk yesterday.

Denmark topped the EU in terms of broadband access with 12.7 per cent penetration, narrowly beating Belgium, where 12.1 per cent of the population had access to broadband.

Only Greece, with 0.1 per cent penetration, trailed the Republic.

About 35,000 people throughout the Republic were broadband subscribers, with about 72 per cent of these getting their access through digital subscriber lines (DSL).

The remaining 28 per cent obtained broadband access via cable modems or other means.

Despite the low numbers, the Government aims to attain widespread broadband connectivity throughout the State by 2005.

The Government plans to invest €140 million of Exchequer funding between now and 2007 to provide open access broadband infrastructure to all cities and towns with populations greater than 1,500.

In addition, 64 million has been committed to a metropolitan network initiative, which aims to construct fibre-optic rings linking 19 cities and towns across the country to local and regional Government organisations.

Another report, prepared by PricewaterhouseCoopers (PwC), said that the total value of online transactions conducted in the EU was expected to reach 2,200 billion in 2006, nearly 22 per cent of all EU industrial trade.

That would nearly triple the current 77 billion of online business.

The PwC report also said broadband penetration was expected to reach 30 per cent of all households in Europe by 2008, with broadband access revenues to reach 21.7 billion in that year.

European broadband access revenues were 3.3 billion in 2002, the most recent year for which data are available.

The reports were presented at an all-day EU broadband conference, in which EU communications ministers, including Mr Dermot Ahern, Minister for Communications, Marine and Natural Resources, met about 20 executives from information and communications technology firms.

The telecommunications conference was held at the Dundalk Institute of Technology.