The private sector has failed to meet "actual and latent" demand for broadband in Ireland according to a new report from the Information Society Commission (ISC).
The ISC - an independent advisory body to the Government - called for a "revitalised" approach by the Government to broadband infrastructure.
The report shows that for Ireland to reach the current EU average penetration level, "we would need to grow our broadband numbers" to over 175,000 or by 1760 per cent.
To reach the best EU penetration level the numbers using broadband would have to increase to 375,000 from the current level of 9,470 - a forty fold increase.
At the launch of the report in Government Buildings, the Minister for Communications, Mr Dermot Ahern, agreed with the report saying that the lack of broadband usage was "a very serious state of affairs" and that there had been market failure on the part of the private sector to roll out broadband.
Earlier today Mr Ahern announced key elements in the Government's Broadband Action Plan which includes connecting 80 towns with populations of at least 1,500 to broadband with community broadband exchanges and strategic fibre.
"We cannot wait for the market anymore. Where there is market failure the Government should intervene," said Mr Ahern at the launch of the report.
He also urged the telecommunications companies to lower the price of broadband.
"I say this time and time and time again. Lower the price of broadband and volume will increase," he said.