The Government has set telecoms companies a target of signing up 500,000 broadband users by the end of 2006 and promised further State investment in the sector.

It has also committed to publishing a quarterly league table outlining exactly how many broadband subscribers each company has signed up in Ireland.

Mr Noel Dempsey, the new Minister for Communications, told a conference yesterday he believed the new 500,000 target was a "realisable challenge".

He also said there would be no Government u-turn on its €200 million programme of investment in telecoms infrastructure - in a blow to Eircom's interests.

"Yes, there are critics of the Government's broadband investment programme. But the Government believes it is absolutely necessary," said Mr Dempsey.

"Looking to the future, it is better if Government and the industry continue to co-invest as we have in the roll-out of DSL, broadband wireless, hybrid fibre cable networks, satellite broadband and the metropolitan area network programme."

Mr Dempsey's continued support for the metropolitan area network scheme - which involves the construction of 100 per cent State-funded networks in towns - will disappoint Eircom.

The firm has lobbied intensely against the multimillion euro project that enables rival telecoms firms to bypass parts of its own network.

Mr Dempsey said Ireland was already placed favourably on the league tables for broadband, and said the Government's objective of obtaining a 10 per cent OECD position is not within early reach.

He said he wanted to see 35 per cent of the population signed up to broadband internet services by the end of 2006. Broadband is no longer an optional extra, it has become an essential tool of industry, commerce, education, healthcare and social inclusion, added Minister Dempsey.

He also asked the mobile phone industry to provide text messages free for deaf people.

"It would not cost a lot but it would make a huge difference."

Mr Dempsey, who was speaking at the Telecommunications and Internet Federation conference in Dublin, said technology and the internet also have huge value as education tools.

But he said these needed to be fully integrated into the school curriculum.

"We must not begin and end simply with the provision of broadband and PCs to schools. On their own they represent an excellent start, but only a start."