Firms based at more than 40 enterprise centres across Ireland will pay lower phone bills following the introduction of the latest voice over internet protocol (VoIP) technology shortly.

VoIP Ireland, a start-up company chaired by the former head of the Railway Procurement Agency, Mr Donal Mangan, will install VoIP following a deal signed yesterday with the State.

The deal will immediately provide cost savings for enterprise centres and enterprise boards, which offer start-up firms mentoring and office space.

VoIP Ireland will initially offer a normal cheap rate call service and provide the new VoIP connections to firms with broadband access.

VoIP technology enables companies and consumers to make telephone calls over internet networks rather than the traditional phone networks. By avoiding the traditional networks, consumers can save significant sums of money.

Mr Mangan said the new technology - which can easily be installed using a home computer and a broadband internet connection - should provide cost savings of up to 50 per cent on bills.

He said VoIP Ireland would begin offering Irish consumers new telephone numbers for VoIP calls from early next year. They will begin with the prefix (076).