Some 56,000 farms outside the reach of commercial broadband providers are set to get access to high-speed internet, after the Government approved the proposal tendered in by the last remaining bidder in the process at a cabinet meeting this Tuesday.

The consortium formed by US-based company Granaham McCourt and its subcontractors has been selected to connect 100% of premises in the state within seven years. The state will install internet cafe-type access points in towns and villages to allow those waiting for a connection to come and use high-speed internet in the intervening times.

The bidder will own a newly formed company called National Broadband Ireland and receive a maximum of €2.97bn including VAT in Government susbsidies as roll-out progresses. This may be lower as contingencies such as potential rises of the price of materials are already built into the proposed contract.

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Existing poles and ducts

The proposed network is to be built over the existing telephone poles and ducts, which means no access to land should be required for new infrastructure.

It is expected to deliver download speeds of at least 150Mbps to the first of half a million homes, farms and businesses to be connected under the plan, with speeds rising as technology evolves throughout the 25-year subsidised contract.

National Broadband Ireland is then due to maintain the network for another 10 years and own it for commercial use after 35 years.

Existing retail companies offering broadband packages will have access to the network to reach rural customers at the same prices as they currently do in connected areas.

State aid

A formal contract subject to state aid approval by the European Commission is due to be signed later this year. Former Minister for Communications Denis Naughten resigned last year over controversial meetings with Granaham McCourt boss David McCourt, but an independent audit later concluded that the tendering process could continue.

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