Communications Minister Eamon Ryan has announced that mobile company 3 has been selected as the preferred tenderer for the National Broadband Scheme.
The scheme is aimed at delivering broadband to those areas of the country currently unserved. 3 was up against Eircom for the contract.
The Department of Communications says that work will be finalised on the contract in the coming weeks, with a final announcement expected next month.
'It is imperative that we have universal broadband coverage in Ireland, for foreign investment, for competitiveness and for our own businesses and householders,' said Minister Ryan.
The department estimates that about 10% of the country remains without a broadband service. It says the scheme, which involves a Government subsidy, will ensure that all reasonable requests for broadband in these areas are met.
3, owned by conglomerate Hutchison Whampoa, launched on the Irish market in 2005. It operates one of Ireland's 3G mobile phone licences under the 3 brand and has 300,000 customers, including 105,000 mobile broadband users. A surge in mobile broadband has lifted Ireland's broadband penetration rate, though critics have said there are issues with its speed and quality.
Eircom said it was 'extremely disappointed' not to be awarded the contract, but remained committed to delivering broadband to as many parts of the country as possible. It said it would continue to support the Government in whatever way it could to deliver broadband.
