Broad Band Communications, a specialist telecoms provider, has begun work on building a major high-tech cable and ducting system around Dublin.
As well as the cable and ducting ring, Broad Band plans to link the capital directly with the Global Crossing cables which enter Ireland at Co Wexford.
The £50 million (€63.53 million) projects, known as the T50 and the East Coast One (EC1), aim to provide a seamless telecommunications link around the greater Dublin area extending down the east coast to Kilmore Quay in Wexford, connecting with all the submarine communications systems entering Ireland.
To date, Broad Band has entered into agreement with 12 telecoms operators to provide telecom facilities.
The company hopes this will mean less disruption for motorists and residents in Dublin, because instead of 12 different digs by providers, they will all share the ducts.
Mr Brendan McCann, managing director of Broad Band, said the T50/EC1 system would provide one of the most advanced and high-speed links in Europe.
In addition, it would provide connectivity for the major telecoms operators to the two transatlantic systems facilitating broadband services, Global Crossing and 360networks.
Broadband services allow the high-speed transmission of voice, video and data information along a cable carrying several channels at once.
The fibre-optic cable allows millions of phone calls to be made simultaneously and will result in faster and substantially cheaper international telecommunications services.
In July 1999, Global Crossing, the communications infrastructure provider, announced the establishment of its broadband facility based in the newly opened National Digital Park at Citywest Business Campus in west Dublin.
The Global Crossing broadband contract has been agreed to connect Ireland to 36 European cities and the US so far, and 13 contracts have been signed to bring high-speed Internet-capable networks to 120 towns and villages in the State.
Last month, broadband network service provider 360networks opened a $70 million cable landing station in Clonshaugh Industrial Estate in Dublin that will connect Ireland to North America and Europe via a 12,200 km undersea fibre optic cable.
The Government hopes that by encouraging such telecommunications infrastructure, Ireland will develop as an e-commerce centre. Mr McCann said the current work would ensure Ireland was able to develop its position as a world centre for e-commerce.
"The T50/EC1 system is an important strategic link for Ireland and will provide opportunities to develop new and existing business and help strengthen Ireland's position as a centre of e-commerce," he said.
The delivery date of the completed project is August 2001.
