A group of the State's biggest telecom firms have offered the Government equipment and telecom services worth some €15 million over three years to provide broadband to Irish schools.

The offer was made to the Government by IBEC's Telecoms and Internet Federation in the past week. It follows an earlier lower offer by the industry which the Government rejected.

Companies that are proposing to supply Irish schools with the technical equipment and services for broadband include Eircom, O2 and Vodafone. Other smaller telecom companies may also contribute to the broadband fund which is capable of carrying data at high speeds.

The firms have made the proposal in reaction to a threat by the Minister for Communications, Mr Dermot Ahern, to levy a tax on the industry to raise cash to supply broadband to schools.

The provision of "always on" high-speed internet services to schools has been highlighted as a key requirement by the Government. It would enable students to use a much greater selection of multimedia coursework and could actually cut the cost of internet access for some schools.

The Government believes that industry should contribute to the cost of providing broadband to schools because it should spur consumer demand for the technology and boost their profits.

Last night the Department of Communications confirmed that it had received an offer from the business lobby group. A spokesman said the Government was considering the new offer.

A decision on the offer is expected to be made within the next few weeks as the Government seeks to prepare a new ICT strategy for Irish schools.

The current three-year technology strategy is due to conclude on December 31st.