Some of the world's largest and most influential technology companies, including Microsoft, Nokia and Vodafone, are planing to locate a new internet names registry company in the Republic.
The registry, which has not yet been approved by the internet regulator ICANN, will issue domain names specifically for wireless devices in an attempt to spur development of Web pages that are accessible from mobile devices.
The joint venture represents a significant coup for the State, which is positioning itself as a hub for e-commerce and internet-related activities.
Between 10 and 25 staff will work at the operation's Irish headquarters and there is likely to be some investment in terms of internet infrastructure, according to Mr Brian Arbogast, vice-president of Microsoft's MSN Mobile Service Division.
"Ireland is a good environment for technology and we wanted to be in Europe because it is strong in mobile technologies," he said.
Nine of the world's biggest technology companies are taking part in the joint venture. They are Microsoft, Vodafone, Nokia, Sun Microsystems, Hewlett-Packard,Orange, Hutchison Whampoa's mobile phone firm "3", Samsung, and the GSM Association.
An IDA Ireland spokesman said the decision of some of the world's leading firms to locate this project in the Republic was good news for the State's plans to become an e-hub. He said the decision was all the more remarkable because the agency had not even had to pitch to the firms to attract the investment.
The project has not yet been assigned an official name by its backers or assigned the letters for the body's new top-level domain names. The new domain name targeted at the wireless sector will be the equivalent of the .com or .ie domain.
The main purpose of the proposed registry is to prompt developers to design services and Web pages for mobile devices such as phones and personal digital assistants. But the registry will also be a commercial business venture, selling domain names to firms and individuals for a fee.
Mr Arbogast said he did not envisage ICANN opposing the proposed domain registry because it had already been submitted to the body in a recent call for proposals. He said the support of nine of the world's biggest companies should also help the registry gain a lot of credibility.
"Most internet pages are currently not designed for mobile devices," he said. "It is all about simplifying the use of Web pages for people using mobile phones."
