Consumers in Ireland look set to get broadband data rates of up to 24Mbit/s following a strategic partnership agreed between BT and Vodafone.
This compares with the UK's government's much-talked of ambition to achieve a minimuim broadband data of just 2Mbit/s by 2012.
See: Is Digital Britain broadband target fast enough? - ask MPs
In Ireland, what is being described as "a landmark contract" will see BT committing significant investment towards building network infrastructure for the delivery of up to 24Mbit/s broadband services to approximately two thirds of Ireland's available broadband lines by unbundling up to 58 additional exchanges.
To date, BT has already unbundled 22 exchanges in the Republic of Ireland.
"This is a very positive chapter in Ireland's telecoms history and will open up the market to greater competition and choice," said Chris Clark, CEO, BT Ireland.
Under the terms of the agreement, which is subject to approval from the Irish Competition Authority, BT will transfer its consumer and small business broadband and voice customer base to Vodafone and will also provide wholesale network services for Vodafone's business over a seven-year period.
It is significant because the deal also brings together two one-time telecoms rivals.
BT will benefit from Vodafone's strength in sales, marketing and distribution.
Over 84,000 consumers and 3,000 small businesses currently with BT will transfer to Vodafone over the next several months, where they will benefit from access to a wide range of innovative converged services from a leading total telecommunications company.