Dr. Dónal Palcic:

The Department assumed any bidder would try to meet its minimum 13 Mbps download requirement and would do so by using current technology. The main issue is around the refresh rate - for example, if one puts in, say, the current optical equipment and it has to be replaced in seven years. It is much further in the future when there are revenues. Much of that could be funded by commercial revenues. However, there is a much higher cost of putting in the more advanced technology right now. Analysys Mason said that is a much higher cost and a big margin in terms of what it was assuming. If take-up rates are low in the next several years and it will have to be refreshed in ten years time, it is big upfront capital expenditure cost subsided by the State versus the future refresh costs which could be coming out of revenues.