The European Commission has moved after a nine-month investigation to approve Government and EU expenditure of €170 million to extend a State-owned broadband network into another 90 towns.
The commission's competition body approved the State aid for the extension of metropolitan area network (MANs) system, in the face of resistance from telcos such as Eircom and BT, because broadband take-up in Ireland is among the lowest in the EU.
Private telecoms firms have repeatedly expressed concerns that the Government project would undermine investment in the broadband sector. They questioned whether the public funding was an illegal State aid, but it is believed that no company made a formal complaint.
However, European competition commissioner Neelie Kroes concluded after a long investigation into the proposed investment that the State project would promote broadband in areas that would otherwise miss out on the technology. "The open networks will enable operators to offer high-speed broadband services to businesses and citizens in the towns concerned," said Ms Kroes.
Minister for Communications Noel Dempsey welcomed the decision and said contractors would start work in Louth, Cavan, Monaghan, Mayo, Wicklow, Dublin, Meath and Galway by May.
E-net, the Limerick-based company which holds the contract to run the first 27 MANs, said it would tender to operate the new systems. He said the approval of the State aid was a vote of confidence in the MANs.
But the approval of the new funding was criticised by Eircom, which said the MANs were a waste of money. "We already have broadband in 118 of the 120 towns listed for the MANs scheme and our prices are below the EU average. So we are baffled why €170 million of state aid is required," said its commercial director David McRedmond.
The towns earmarked for the next phase of the scheme are:Athenry; Ballinasloe; Ballybofey/ Stranolar; Bantry; Blarney; Carrigaline; Castleisland; Castlerea, Claremorris; Clifden; Clones, Cobh; Dingle; Furbo; Kenmare; Kildare; Killarney; Kinsale; Listowel; Longford; Maynooth; Midleton; Mitchelstown; Navan; Nenagh; Newbridge; Passage West; Rathangan; Ringaskiddy; Sallins; Skibbereen; Tralee; Tramore; Trim; and Youghal.
After that, the MANs will go to: Abbeyfeale; Ardee; Athboy; Bailieborough; Ballinrobe; Ballyshannon; Banagher; Birr; Blessington; Boyle; Buncrana; Carndonagh; Carrick-on-Suir; Cashel; Charleville; Clane; Clara; Cootehill; Duleek; Dunboyne; Dunmanway; Dunmore East; Edenderry; Fermoy; Gort; Kanturk; Kells; Kilcock; Kilrush; Kinsealy-Drinan; Laytown-Bettystown; Loughrea; Lusk; Moate; Monasterevan; Muine Bheag (Bagenalstown); Newcastle West; Newtownmountkennedy; Portarlington; Portrane; Prosperous; Rathcoole; Roscrea; Templemore; Thomastown; Tipperary and Tullow.
