The National Broadband Plan is likely to cost more than the €1 billion previously signalled because of the high cost of connecting homes in rural parts of the State.

Industry sources say fibre broadband connections typically cost about €1,000 per premises in urban areas, but this can rise to €2,000 in rural areas, particularly if the sprawl is significant, which is the case in much of rural Ireland because of the incidence of one-off housing.