Mr. Torlach Denihan:

I thank the Chairman and the committee on behalf of the TIF and the ICIA for its invitation to discuss broadband and mobile telephone coverage. The industry sees this meeting as part of an ongoing dialogue with Deputies and Senators regarding these issues. The TIF is the representative body for the industry and its members include all companies making significant investments in telecommunications infrastructure in Ireland. The ICIA is an alliance of the mobile network providers. All ICIA members are also members of the TIF. My presentation is industry-specific and is not connected to any particular company. If members have queries about specific locations or individual customers, we will be happy to take those on board and the companies will respond off-line, as it were, as we do not have the information with us today to go into that level of detail.

Our industry wants to work with Government and members of this committee so that a high quality communications network is available to all homes and business premises in Ireland, regardless of location. The telecommunications sector is an important contributor to Ireland's society and economy. It employs 18,000 people throughout the country and generates €1.4 billion in taxation, or 3% of total revenue. It provides innovative new services that continue to transform life in the workplace and at home. It is paying €843 million to the Irish Exchequer in licence fees as a result of the 2012 spectrum auction. It has invested €2.5 billion in Ireland's telecommunications infrastructure in the past five years. Taken together, this amounts to an investment by industry of €3.2 billion over the last five years, which is equal to Ireland's entire public capital programme for 2014. This enormous investment took place throughout the economic crisis in Ireland - during the bailout period - and was a major vote of confidence in the Irish economy, as was stated by Government when the results of the spectrum auction were announced. Similar substantial capital investment will be made over the next few years to upgrade the core communications infrastructure by rolling out fibre and 4-G mobile.

Some 97% of households subscribe to mobile telephone services, 85% to pay-TV services, 78% to broadband services and 69% to fixed telephone services. There is near-universal availability of basic broadband at 3 Mbps, and of mobile telephone services. By June 2016 fixed or cable network fibre high-speed broadband services are projected to reach 1.6 million homes and businesses. Fibre and cable broadband services deliver speeds in the 100 to 200 Mbps range. There is over 100% population penetration for mobile telephony, with 59% of individuals using smart phones. As ComReg said to this committee last month, the mobile operators have always significantly exceeded the coverage conditions of their licenses, as set by the State. 4-G roll-out has commenced, with some 300,000 active 4-G subscriptions. Over the next three years 4-G will be rolled out nationally, including to those areas covered by the national broadband scheme.

The telecommunications market is highly competitive with approximately 50 operators, and several new entrants have been announced recently. Despite sector revenue decreasing, the industry is continuing to invest. Where it is commercially viable, companies will provide high-speed broadband, whether fixed, cable or mobile, by making the necessary major investment in telecommunications infrastructure. In areas where it is not commercially viable, this investment is to be made by Government through a public tender. The industry engages with Government regarding the roll-out of high-speed broadband through participation at chief executive level on the Government's next generation broadband task force.

As members are aware, last April the Government announced an initiative for State funding for a major roll-out of fibre in rural areas to make a high-speed broadband network available to all homes and business premises, regardless of location. TIF supports this initiative and the industry is working intensively with the Department of Communications, Energy and Natural Resources to help with this project. Accelerated commercial investment by industry has taken place since 2012. The Department informed this committee that the result of this is that the area to be addressed by the State scheme has been reduced by half. Support from committee members for this initiative and for future investment by industry would be invaluable. In particular, the industry would welcome the committee's support in overcoming unnecessary local barriers to telecommunications infrastructure so that high-speed broadband and 4-G can be provided in every locality.

Broadband and mobile provision in rural Ireland is challenging because of where our people live. We not only have a relatively low population density but even more significantly, our population is incredibly dispersed across the landscape. Taking density first, the UK is four times more densely populated than Ireland, with 263 people per square kilometre. Ireland has 67 people per square kilometre on average while rural Ireland averages approximately 26 people per square kilometre. Our population dispersal is even more significant. Over 25% of our population lives in what the OECD calls "remote" rural regions, namely, villages with fewer than 50 homes, compared to an EU average of 11%. The extent to which our rural population is dispersed is unique. Rural broadband in Ireland thus requires relatively more telecommunications infrastructure, in terms of masts and fibre, than elsewhere. Natural features such as hills, valleys and even trees, can degrade signal quality. When making planning applications, telecommunications operators seek to locate masts so as to overcome these obstacles and transmit signals as effectively as possible.

Masts are used to provide broadband as well as mobile telephone services. Issues with the planning system and planning processes are a significant barrier. The Economic and Social Research Institute, ESRI, concluded that reform of local planning regulations would help to avoid worsening the urban-rural digital divide. Levies, bonds and inconsistency of approach by local authorities regarding telecommunications infrastructure and road openings are a further barrier. Lack of consistency among State agencies in terms of access to State property for telecommunications infrastructure is an additional barrier. Steep increases in network rates payable to local authorities, as indicated by the Valuation Office, is another emerging problem.

The industry would welcome support from committee members with local authorities and State agencies regarding the barriers outlined above. We acknowledge the support provided to the industry in addressing such barriers by the Department of Communications, Energy and Natural Resources, the Department of Transport, Tourism and Sport and the Department of the Environment, Community and Local Government.

The speed at which investment happens will be critically dependent on the continuation of a pro-investment environment and improved co-ordination among local authorities and State agencies. The continued roll-out of high speed broadband and 4-G has a dual significance for Ireland's economic recovery: first, the immediate employment provided by network construction and, second, and more importantly, the longer-term role of high speed broadband and 4-G in facilitating job creation at local level. We welcome the Government's commitment to encourage demand for high speed broadband by measures to fund training to promote information technology, IT, literacy across society to make online services accessible to all and measures to assist small and medium enterprises, SMEs, to develop an online presence to serve their customers.

Significant investments in cable, fixed and mobile infrastructure are required. There are clear economic and social benefits from advanced telecommunications. Co-operation between operators, the Government, local authorities and State agencies is critical to making progress. A more co-ordinated approach by local government and State agencies will make investment happen faster.

I reiterate that operators are willing to engage on a one-to-one basis with members of the committee or other Members of the Oireachtas on specific issues as required, as is our organisation. We will be happy to answer any questions from members.