ESB and Vodafone have announced a €450 million scheme to build what is described as one of the fastest broadband networks in the world.

The network will be provided through the electricity infrastructure of the ESB and will initially be rolled out to 50 towns in every county in Ireland by 2018.

Communications Minister Pat Rabbitte has welcomed the news as an "exciting step" which will bring internet speeds in regional towns up to a state-of-the-art levels.

He is promising that rural Ireland will have "Rolls Royce" internet under the new plan. He has been briefing TDs on the plan to roll out fibre optic connections in areas that do not already have them.

The plan will supersede proposals to increase the number of mobile phone masts available to offer mobile broadband.

The firms say this will help regional areas to compete more effectively for investment and jobs, and SMEs to work more efficiently, enhance their online presence and reach new markets and customers.

The joint venture is subject to European Commission approval - but it is hoped it will begin rolling-out the new network in the coming months, with the first customers able to avail of fibre broadband from the start of 2015.

The Minister says the new scheme will be fully future-proofed.