Oireachtas Joint and Select Committees

Wednesday, 11 March 2015

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Operations and Functioning of National Lottery: Discussion

2:15 pm

Mr. Dermot Griffin:

I will address the questions on the telecommunications contract. We set out our requirements for modern telecommunications, and what we wanted was a telecommunications service that was fit for purpose in a modern network. In the past, we had issues with the DSL broadband network, and local outages occurred where a wire or cable was cut and agents in the locality went down. A physical repair is needed to restore this type of outage. While there have not been any national issues with the broadband service, local issues arise with it. We set out our requirements, went to tender and received a number of tenders. We used a specialist telecommunications consultant company, Analysys Mason, to assist us with the evaluation of the tenders. We have a very modern and advanced telecoms solution based on a roaming SIM card. What this means is that when these roaming SIM cards are installed in the retail terminals, it gives us the ability to utilise all the Irish mobile phone networks - Vodafone, O2 Ireland, Three and Meteor. We can then choose the strongest signal. This gives us a very high percentage coverage on the 3G network. We also have DSL broadband in the mix, because 3G is not available in certain locations and broadband is a better solution than 3G at certain sites. This has been implemented in the network. Over time, we will optimise the two technologies to ensure that where a site does not perform well on one or other of them, we can move to the second option, or, as coverage improves or broadband is rolled out further, we can optimise our telecommunications network.

The solution, the programme provided by Telefónica Spain, is utilised by 1,500 different corporate customers, including Sony, Amazon, Volkswagen and Garmin. As such, major international multinational companies use this solution for machine-to-machine communications. Over time, we intend to migrate the technology we have adopted to 4G, which is, as Deputy Fleming noted, the way to go. We took the view that current coverage was not sufficient to give us enough capability to cover an adequate area of the country. The solution we chose has the ability to evolve into a 4G solution over the lifetime of the licence. We view this matter from the perspective of the long-term licence and not only in the short term.

That is the background to the decision to go with 3G. For the information of members, we also have a limited number of satellite outlets in locations where broadband and 3G are not available. Satellites also have problems, as planning permission is required and other matters must be dealt with. Based on our evaluation, the best technology for us was a mix of 3G and some broadband.

On the role of Camelot Global Services Ireland, this operation has been provided to assist in the technical operation. It is a team that will assist on the helpdesk side dealing with the agents, and is headed up by a former employee of Eircom. As a specialist team, it will operate the technical side and helpdesk and assist us online. It will also be able to tap into our sister Camelot company in the United Kingdom to adopt best practice and avail of economies of scale in online games and so forth.

Westbase Technology is a telecommunications management provider which won the contract for the 3G and broadband service. It manages the network for us. Given that our competency is not in telecommunications, we contracted this end of the business to Westbase Technology, which will manage it on our behalf.

On the registration of Premier Lotteries Ireland, we are an Irish-incorporated company, which means we will pay Irish corporation tax and all other taxes.

The requirement on unclaimed prizes is that they be utilised for the promotion of the national lottery. This means, for example, that it can be used when we do top-ups and specials. In the past, we have sponsored the fireworks for St. Patrick's Day. It will be for that sort of activity.

I believe the Deputy asked what would be the minimum price point.

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