Oireachtas Joint and Select Committees

Wednesday, 5 June 2019

Joint Oireachtas Committee on Communications, Climate Action and Environment

National Broadband Plan: Discussion

Mr. Donal Leavy:

Yes, I have an additional point about the Deputy's previous question on technological change. We have found over the years that in civil engineering the underlying build accounts for the vast bulk of the cost of a network, especially a local access network such as the one we are talking about. It would not be unusual for it to make up 80% of the total cost and that infrastructure is much less susceptible to the type of technological change to which the Deputy referred. For example, while the electronic equipment is certainly much cheaper per unit than it was 20 years ago and thus the cost of transmission per megabit much lower, the underlying civil engineering infrastructure, that is, the ducts and poles, is not as susceptible to the same technological change. That is why the cost of line rental, for instance, has not really gone down in price over the years, whereas the cost of a call or a megabit of broadband has reduced substantially. There is that mix of the two factors, with relatively stable prices for certain types of infrastructure.

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