Prices for fixed broadband in Ireland are almost double the EU average, according to the latest digital scoreboard from the European Commission.
The annual survey shows that since last year Ireland's overall digital ranking has risen one place to eighth among the 28 EU states.
Ireland scored well for internet, the survey found, but less so on cost as a proportion of income, price and skills.
The study found that during the past year coverage and take-up of fast broadband has increased considerably, while use of internet services for news, social networking and online shopping and eGovernment has also increased.
Sufficient digital skills
However, it also found that further progress is required when it comes to increasing digital skills, with just 44% of people in Ireland having sufficient digital skills to operate effectively online.
The ICT skills shortage is also found to be a problem, with around half of businesses trying to employ specialists reporting difficulties.
The scoreboard also says there continues to be problems with the integration of some digital technologies by businesses, like electronic information sharing and radio frequency identification (RFID).
Ireland performs slightly better than the EU average the study finds, but has improved at a slower rate than the EU as a whole.
As a result, it lies in the category of "lagging ahead" nations.
The scoreboard assesses EU countries according to criteria including connectivity, skills, internet use, and the integration of digital technology in business, public services and everyday life.