Noel Dempsey (Meath, Fianna Fail)

The provision of telecommunications services and the development and roll-out of telecommunications technology is primarily a matter for the industry itself. The telecommunications market is fully liberalised and regulated by the Commission for Communications Regulation, ComReg, which is independent in the exercise of its functions, in accordance with the provisions of the Communications Regulations Act 2002.

In comparison to other European counties, private broadband service providers in Ireland were relatively slow in launching competitive, affordable broadband. However, the position is improving rapidly. In late 2004, the Government set a target of 400,000 broadband subscribers to be achieved by the end of 2006. I have, however, challenged the industry to strive for 500,000 subscribers by then. The Government's broadband target is to be within the top half of EU countries by the end of 2007. Since 2004, broadband subscriber numbers have more than doubled and the current take-up for broadband is approximately 10,000 per month and continues to increase across a range of technologies.

The latest quarterly data report published by ComReg on broadband delivery rates indicates broadband subscriptions had increased by 19% as of September 2005 to 208,000. DSL remains the largest platform for broadband access, representing 78% of subscriptions and a growth rate of 16% in the last quarter. The proportion of broadband subscriptions delivered over access platforms other than DSL has increased over the past 12 months. The estimated end December 2005 figure for broadband subscribers is 250,000, according to the regulator. In 2004 there were more than 80 Internet service providers whereas today more than 156 companies are listed by ComReg, with at least 45 different broadband offerings across a variety of technologies, including DSL, fibre, cable, leased lines and satellite technology. Wireless broadband technology is improving rapidly and the lowering of equipment prices has made this technology much more attractive of late. The use of fixed wireless local access is increasing, especially in rural areas that cannot obtain ADSL connectivity and the development of Wi-Max offers considerable potential in the future. New technologies can deliver broadband to virtually any broadband customer in Ireland.

Ireland is the lowest cost country in the OECD for international connectivity, our regional broadband pricing is on a par with the best in Europe and the price of basic broadband access is at the EU average.

Additional information not given on the floor of the House.

My Department's website, www.broadband.gov.ie, gives prices, service levels and contact details for each service provider offering a wide range of broadband products.

The rate of broadband uptake is dependent on a combination of factors. These include access by private sector service providers to suitable infrastructure as well as competition between broadband service providers and demand conditions for broadband in the economy. In addition to setting challenging targets to the telecommunications industry, the Government has taken a number of policy and investment initiatives to improve broadband availability.

In March 2004, a number of policy directions were issued to ComReg by my predecessor, the now Minister for Foreign Affairs, Deputy Dermot Ahern, relating to competition, broadband, wholesale and retail line rental, interconnection and leased lines, and national and cross-Border roaming. The direction on broadband required ComReg to use regulatory and enforcement tools, where necessary and subject to relevant requirements under European and national law, to support initiatives to develop broadband and remove regulatory barriers, if any exist, to such initiatives.

Local loop unbundling, LLU, is mandated by a European Council regulation and responsibility for its implementation is a matter for ComReg under the Communications Regulation Act 2002 and the transposed EU regulatory framework for electronic communications networks and services. I have no powers to issue instructions to service providers on broadband.

Given that the level of investment by the sector in high-speed broadband infrastructure has failed to keep pace with the demand for broadband, my Department is addressing the local infrastructure deficit by building high-speed, open-access, fibre-based metropolitan area networks, MANs, in 120 towns and cities nationwide. This is taking place on a phased basis, in association with the local and regional authorities, using European Regional Development Fund and Government funding under the National Development Plan 2000-2006.

Phase one of this programme has so far delivered fibre-optic networks to 27 towns and cities. The programme has been extended to a further 90 towns nationwide. Design and procurement is well advanced in most regions and construction is due to start early this year. These networks will be completed during 2006 and 2007. They allow the private sector to offer world-class broadband services at competitive costs.

My Department also offers funding assistance for smaller towns and rural communities to become self-sufficient in broadband through the county and group broadband scheme. This scheme is technology-neutral, allowing the community to select the most suitable broadband delivery platform for the area. To date, more than 150 projects have been approved for funding under the programme. In addition, a joint industry-Government fund of €18 million has been established for the broadband for schools programme, which will provide every school in the country with broadband during 2006. Full details of the regional broadband programme can be found on my Department's website, www.dcmnr.gov.ie.

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