Oireachtas Joint and Select Committees

Wednesday, 3 July 2019

Joint Oireachtas Committee on Communications, Climate Action and Environment

National Broadband Plan: Discussion (Resumed)

Mr. Ciarán Ó hÓbáin:

It is a short answer. I will not go back over the 340,000 because we have dealt with that extensively. There has been a good deal of focus around - because it is a figure of almost €1 billion - €900 million plus that we have in the model that would be paid to Eir for rental of poles over 25 years. That is based on the regulated pricing that is in place by ComReg. That is an estimate of what the cost of operating and maintaining that network over 25 years would be. It costs to build a network and then it costs to maintain that network, and one must pay those costs. If the State built its own network, the State would have to invest similar-type sums to maintain that network over 25 years. We have included in the tender the cost today that ComReg says is required to pay to maintain those poles and ComReg will regulate that going forward for so long as ComReg sees that it is necessary. That is a real cost. That is not giving somebody a return on earlier investment. It is related to real costs of maintaining a network over that period.