Mr. Tony Hanway:

I thank the committee for inviting me to address members on the broadcasting (amendment) Bill 2017 and retransmission fees and for its interest in this matter important matter. To support Virgin Media's contribution today, I am accompanied by Ms Kate O'Sullivan, vice-president of corporate affairs at Virgin Media Ireland.

By way of introduction, Virgin Media is part of the Liberty Global family, which is the world's largest international TV and broadband company. We employ over 1,800 people in Ireland and offer 1 million services to more than 500,000 Irish customers. We have invested more than €1 billion in building Ireland's fastest connected entertainment network, which means that we are now home to the fastest, most widely available broadband speeds for homes and businesses.

Last year, we launched Project Lightning, a digital infrastructure investment programme that will extend the reach of our cable footprint from today's 49% to 60% of all homes by 2020. Our network expansion programme has been possible because of Liberty Global's continued commitment to the Irish business. As with any international organisation, however, Virgin Media must compete for investment capital with sister companies within the group. Inward investment programmes are always dependent on a clearly defined business case with a solid return on investment. That is why today's topic of conversation is so relevant - it touches on proposed changes, both real and suggested, that will have a real impact on our commercial operations in Ireland.

I will turn briefly to our involvement in the broadcasting sector in Ireland. As a platform provider, Virgin Media has built strong partnerships with Irish free-to-air broadcasters, including RTE, TG4, TV3 and Irish production companies. In 2011, we were the first to launch Oireachtas TV and have continued to do so at no charge to the Exchequer. We were also the first to launch the Irish players from each of the free-to-air-channels on our Horizon TV platform, which extended the reach of these channels to Irish audiences and provided those broadcasters with opportunities to generate new advertising revenue streams. From a community standpoint, we carry the Dublin and Cork community channels free of charge and with pride.

As the committee heard from Mr. Kiely, managing direct of the TV3 Group, the TV3 Group has expanded from two to three channels since its acquisition by Virgin Media - TV3, 3e and be3, the new name for UTV Ireland. By undertaking the TV3 Group acquisition, Virgin Media ensured continued diversity of media plurality in the State.

I wish to discuss the draft heads of the Bill and, in particular, the proposed amendment to repeal section 103 of the Copyright and Related Rights Act 2000. The proposed repeal is a significant issue for Virgin Media. Our position is that we do not accept RTE's rationale for its proposal to repeal section 103 in its entirety. The case law that RTE seeks to rely on is specific to the facts of that individual case. At the July hearing this year, the Government indicated that it intended to repeal the section because there is no longer a public policy objective served in maintaining this exception.

It is Virgin Media's position that repealing this provision, or at the very least without qualification, will put Virgin Media at a serious disadvantage versus RTE and, separately, our competitors in the pay television market for the following reasons. First, Virgin Media is the only television platform provider whose technical infrastructure means that we receive and then convert the broadcast signal from PSBs. Second, it will grant RTE the opportunity to pursue Virgin Media for fees that none of our competitors pays today nor will ever have to pay. This means that there is a real risk that Virgin Media will be discriminated against by RTE. Third, and more fundamentally, the repealing of this provision without qualification introduces a credible threat to Virgin Media that RTE will use the repeal of this provision as a Trojan horse to introduce retransmission fees through the back door.

The committee will note I have continually emphasised that Virgin Media does not support the repeal of section 103 or, at the very least, does not support the repeal without qualification. With this in mind, I refer members to the ongoing debates in the UK where section 73 of the Copyright, Designs and Patents Act 1988, which is equivalent to our section 103, has been repealed and used as the basis for ITV to make public statements that it intends to seek carriage fees from pay TV platforms. If we are to avoid the same situation happening in Ireland, we will respectfully make a number of suggestions. First, we ask that Virgin Media, the only cable network of scale in Ireland, is treated the same as all other television platform providers and that provisions in the Bill are clarified to ensure a level playing field for all. Second, there should be a separate review and consultation on the impact of any potential repeal of section 103. Third, we advocate that a dispute resolution process be provided for in the current Broadcasting Act or the proposed new Bill.

I will briefly discuss section 101 of the Copyright and Related Rights Act by focusing on two matters that were raised by RTE at the committee's July hearing. The first pertains to a written submission by RTE to amend section 101. In the interests of time, I do not propose to speak to this point, save to say that we strongly oppose the proposal by RTE. My written submission to the committee will set out our detailed reasons for this.