STATE-OWNED energy group ESB is considering expanding into the telecoms business.

The group is seeking a joint venture partner to develop a fibre-optic cable network using the ESB’s own infrastructure.

The ESB advertised on the Government’s e-tenders website yesterday for a partner that will build, own and operate the network, which will directly connect into homes and businesses.

The State company plans that it and its partner will operate as wholesalers, providing capacity on the network to retailers that will in turn sell their services to homes and businesses.

According to a spokesman, the ESB is targeting substantial urban areas around the Republic where there is a recognised need for broadband services and which should provide opportunities for private sector players.

Minister for Communications, Energy and Natural Resources Pat Rabbitte identified such a market last week in a speech that detailed the Government’s broadband strategy.

The Government is providing a fund of up to €175 million to bring broadband to regions where such a service is unlikely to be attractive to private operators.

The spokesman said the ESB may consider bidding to take part in this scheme in the future, but its primary interest at this stage is developing a network to provide wholesale telecoms services on a commercial basis.