LONDON (Alliance News) - Vodafone Group PLC and Irish electricity utility company ESB Wednesday said they have entered into a joint venture agreement to invest EUR450 million to build a new broadband network in Ireland.
The telecommunications company said the new fibre-to-the-building network will offer speeds from 200 megabits per second to 1,000 megabits per second.
The deal means that Ireland will also become the first country in Europe to utilise its own existing electricity infrastructure to deploy fibre directly into homes and businesses on a nationwide basis, initially reaching around 500,000 premises in 50 towns across the country.
Vodafone said the fibre cables will be deployed on ESB's existing infrastructure, meaning it should be cost efficient and help reduce the digital divide between capital and regional towns in Ireland.
The companies said that the deal, which is subject to European Commission approval, should begin being rolled out across Ireland in the coming months, with first customers to be brought on board at the start of 2015.
Vodafone currently has 200,000 fixed broadband customers in Ireland and over 8.5 million across Europe.
"Vodafone is delighted to partner with ESB to make Ireland the first European country to roll-out nationwide fibre-to-the-building broadband on electricity infrastructure, making a hyper-connected future a reality for hundreds of thousands of Irish people and businesses," Vodafone's Ireland Chief Executive Anne O'Leary said in a statement.
Vodafone shares were up 1.3% to 198.65 pence, putting it amongst the top ten FTSE 100 risers on Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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