Smart Telecom is to invest €2.5 million in upgrading its internet-based television service in an attempt to capture a larger share of the market for its triple-play service, which includes telephone and broadband products.

The investment will enable Smart to make its triple-play of services available via 37 telephone exchanges which it has unbundled from Eircom's network. This will give it access to some 550,000 homes. At present, Smart has just 15,000 residential customers and its triple-play offering costs €75 a month.

Pio Murtagh, Smart's chief operating officer, said that it would launch a more competitive pricing structure on November 1st for existing customers before making the service available to the wider market from January.

"We will be completely revamping our pricing structure and our offering," Mr Murtagh said.

Called Smart Vision, the service will be delivered via a set-top box. It will have more than 100 television stations and have a digital video-recording capacity of up to 80 hours.

Smart is backed by successful Cavan-based businessman Brendan Murtagh.