Dr. Dónal Palcic:

Short of there being a retendering and a more public auction, there is not really any other alternative and going back to the market and so on would come at a time cost. The Department of Public Expenditure and Reform's proposal seems to be the more realistic and would allow for the time to retender a more State-led approach.

On the revenue risk, as I mentioned, in the report by Analysys Mason, it appears that Granahan McCourt is being very conservative in what it expects the demand to be, especially in the early years. It will, of course, have to bear some of the risk in respect of how many people it connects as it rolls out broadband, meets its various deployment targets and receives its subsidy payments. As well as a higher internal rate of return, it is building into its cost model many different margins in respect of labour, the capital expenditure and the various aspects that subcontractors will carry out on its behalf. The Analysys Mason and KPMG reports, however, state such margins will impose significant additional costs. Granahan McCourt is covering itself as much as possible by taking on the risk.