Hi-tech giant IBM's Irish business is to join forces with broadband player Smart Telecom in a new partnership arrangement.

The pair announced yesterday that IBM has appointed Smart as global services business partner in the Republic.

The move means Smart will offer business customers IBM's information technology products and services such as hosting and managed services, online back-up and network management along with telecommunications.

The deal should boost traffic on the telecoms company's network as it will mean that IBM will use Smart's network to deliver services and solutions to its business customers.Announcing details of the deal, Smart chief executive Oisín Fanning said its network reaches about 75 per cent of the population.

"This deal means Smart can position itself as a leader in the delivery of end-to-end technology solutions in Ireland."

IBM global services director,John Scully said: "This partnership provides us with access to new customers and allows us to establish new relationships in target markets, particularly within the small and medium-sized enterprise client base."

IBM is one of the biggest employers in the Republic, employing 3,200 people.

Its activities include software development, sales and marketing, customer support and treasury operations. The turnover of its Irish businesses is estimated at €2.5 billion.

Smart won the fourth and final licence to operate a 3G mobile service in November and recently announced it had raised over €56 million to fund the development of a third generation (3G) mobile network.

Smart raised €55 million late last year for the roll-out of its fixed-line and broadband network.

It is targeting residential and business customers with its services. Smart employs 370 people.