3 Ireland has hired UK-based broadband satellite operator Avanti Communications to assist with its project of rolling-out mobile broadband to Ireland’s rural population. In a statement, Avanti said the contract was worth around EUR5.3 million over three years and would cover an anticipated 5,000 to 6,000 homes and businesses in its initial phase. The project – known as the National Broadband Scheme (NBS) – ultimately aims to deliver high-speed Internet services to the estimated 10 percent of the Irish population that live in remote areas where it is considered uneconomical to build-out fixed-line or mobile broadband infrastructure. The Financial Times this week notes that the 3 Ireland/Avanti deal is evidence that even mobile operators cannot provide broadband coverage to the most far flung rural areas. The report adds that Avanti will use a new band of spectrum, known as the Ka band, which allows powerful spot beams to be focused on small areas. Broadband services over satellite are expected to cost around £20 per month, in line with standard fixed-line and mobile tariffs.

The Irish government awarded 3 Ireland the NBS contract – worth around EUR40 million – in November last year. According to reports at the time, the only other bidder for the contract – BT Ireland – pulled out of the bidding earlier in the year. BT had planned to use WiMAX for the network but reportedly abandoned the project as it would have required building an excessive number of base stations. However, as a 3 Ireland partner, BT is still expected to be involved in the project.