Irish Broadband in €18m funding deal

National Toll Roads (NTR) and Kilsaran Concrete Products will invest €9 million each in Irish Broadband, which provides wireless broadband internet services to businesses and homes.

The deal is one of the biggest private fundraising rounds over the past 12 months and will enable Irish Broadband to expand its network quickly across the Republic and Northern Ireland.

The company claimed revenues of €3 million last year and currently has 5,000 residential and business customers for its broadband services. It plans to add 15,000 new customers during 2005, says Mr Jeremy Nel, Irish Broadband's co-founder and chief operating officer.

"We now have 80 per cent coverage in Dublin and are already live in Galway and Cork. In January and February we will launch services in Dundalk, Drogheda, Limerick and Waterford... By the end of 2005, we should cover 85 per cent of the population."

Irish Broadband is one of a new generation of broadband providers that beam high-speed internet signals into homes and businesses using powerful wireless technology. Analysts predict that they will become serious rivals to fixed line broadband providers like Eircom and Esat BT.

Kilsaran Concrete Products, one of the State's largest independent concrete firms, received a 28 per cent stake in Irish Broadband in return for its €9 million investment. This values the young telecoms firm - which was founded in 2002 - at €30 million.

National Toll Roads, which had previously invested €3 million in Irish Broadband, also invested €9 million in the recent funding round and retains about 63 per cent of Irish Broadband.

The remaining equity is owned by the founders and staff.

Irish Broadband holds a range of licences to supply wireless broadband services in 16 regions across the Republic. It has also expanded into Northern Ireland where it is providing services in Derry, Belfast and Strabane.

The cost of subscribing to wireless broadband services offered by Irish Broadband starts at €29.99 for its residential product.

Irish Broadband's network of base stations broadcasts from tall buildings or masts equipped with a broadcast transmitter on main vantage points over towns. Customers and businesses connect to its broadband network using a small antenna placed on their own roof to pick up the signals.