John Browne (Wexford, Fianna Fail)

The development and roll-out of broadband technology is primarily a matter for the industry in a fully liberalised market. However, broadband providers in Ireland were slow in launching competitive, affordable broadband. The delays in broadband roll-out can be attributed to the lack of competition between providers and the reduction in investment in infrastructure in the aftermath of the dotcom crash.

The report to which the Deputy refers has been examined in some detail. It recognises that availability is improving rapidly. The latest quarterly data report from ComReg on delivery rates indicates that broadband subscriptions increased by 103% from December 2004 to December 2005 and now stand at 270,700. The current level of take-up is consistent with the stage of development of the market.

The report recognises that the roll-out of broadband infrastructure in rural areas needs to be maintained. The Government's regional broadband programme is tackling supply side issues and was a direct response to the lack of investment by the private sector. High-speed, open-access metropolitan area networks, MANs, are being constructed on a phased basis in association with the local and regional authorities. Phase one of this programme has delivered fibre-optic networks to 27 towns and cities. This programme has been extended to more than 90 towns nationwide. These metropolitan area networks allow the private sector to offer world-class broadband services at competitive costs.

According to the report, one of the biggest challenges for the Government is demand or take-up, and Ireland continues to lag behind its OECD partners in this area. Earlier this year, my Department initiated a consultation process to examine the level of demand for broadband services in the Irish market, which concluded in March. The discussion document touched on key demand factors for consumers and asked for possible examples of demand measures by Government and industry, if any are necessary. More than 100 responses were received and a wide range of issues were raised which are being examined by officials in the Department for further action.

The third conclusion is that Ireland requires strong competition in the market to maintain economic competitiveness. In 2004, there were more than 80 Internet service providers while today there are more than 150 such companies with at least 45 different broadband offerings. The use of fixed wireless local access is increasing, especially in rural areas that cannot obtain ADSL connectivity. In addition, the development of wi-max offers considerable potential for the future.

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