The Regional Internet Service Providers Association (RISPA) claims it could deliver an alternative to the National Broadband Plan for just over €400m.
The group has told the Oireachtas Communications Committee that the current plans to connect every home in Ireland to high-speed broadband will fall considerably short of its target.
RISPA said its model would deliver speeds of more than 100 megabits per second and huge network infrastructure would not have to be built.
Marcus Matthews, the association's Managing Director, said its approach would save the State billions.
Mr Matthews said: "RISPA believes that the NBP will fall considerably short of its target for 100% of premises to have access to broadband services and that the project does not represent good value for money.
"RISPA would argue that the collective policy, as outlined in its written submission, represents an alternative approach that would achieve the NBP's aim in two years instead of seven for a net cost to the State of €402m compared to €2.97bn."
The association has called for the procurement process to be stopped and its proposals to be comprehensively evaluated.
Mr Matthews said the group's plans should be seriously considered.
He told the committee: "You have clawbacks and you have all these other mechanisms, but you don't know exactly how it's going to come down.
"I think the bottom line is, you're talking in billions and we're talking in millions and I think it's quite disturbing to me, as a citizen, that you would not be more prudent in terms of examining the information."