Oireachtas Joint and Select Committees

Thursday, 28 March 2019

Public Accounts Committee

2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)

9:00 am

Mr. Fergal Mulligan:

To clarify that, state aid rules preclude one from making a unilateral decision to use x, y or z. As such, there is still nothing going forward under any solution that prevents anybody from using the ESB. Its door is open as is ours. Eir is regulated and the ESB Networks company has products, etc., available. In the context of the understanding that everyone has an ESB connection, most people also have a copper connection from Eircom. There are two infrastructure networks in place that were traditionally serving very different purposes, namely electricity supply and the old landline phone. Both infrastructures remain in place. In June or July 2016, the bidders started on the road of procurement after they qualified. We have had major engagement with one particular entity since Eircom left. When we had three bidders in the process, we spent over 800 hours in dialogue with each bid team. Between July 2016 and September 2017, when SIRO left, the Vodafone and ESB team involved in the bid spent 150 to 200 hours going through how to use the ESB network. With the Eir bid team, the discussion was on how to use the Eir network. With the other consortium, it was about whatever network they chose to use. Obviously, each bidder had a bias towards its own network.

We learned through all that process whether one could use it, whether it was cost-effective to do so and what represented the best value to the State. As we know, Eircom's pole network goes along the road and the ESB's network goes across country.

We can come to this later but the most important thing in any capital project is to find out first how one designs it. If one chooses a particular design, that will dictate which cable one is going to use to get into the house. If one goes along the road with the Eircom pole network, and one is going up a laneway to a farm, it may not be possible to use the ESB network, if it is coming in behind the farm. One just cannot jump from the road over to the field to get onto the ESB network. It is not quite as simple, technically, as using the ESB connection to the house to do the last mile. These are the issues about which we have had dialogue to find this out. There are some homes that have the ESB network going along the road as well, and if during the build - if the current bidder is successful in getting the bid and is building it - it may have the opportunity to get to that farm using the ESB network, if there is not an Eircom pole network there already. That will be its choice, depending on what is the most cost-effective solution. All of these issues are on the table at the moment.