John Browne (Wexford, Fianna Fail)

I propose to take Questions Nos. 7, 30 and 106 together.

The provision of telecommunications services, including broadband, is a matter in the first instance for the private sector companies operating in a fully-liberalised market, regulated by the independent Commission for Communications Regulation, ComReg.

In comparison with other European states, broadband providers in Ireland were slow in launching competitive, affordable broadband. The lack of competition between providers and the reduction in investment in infrastructure in the aftermath of the dot-com crash weakened the initial roll-out by providers here. The situation, however, is improving rapidly and the level of uptake is consistent with the stage of development of the market. Ireland is now the fastest growing broadband economy in the EU. The latest ComReg quarterly report states there are 270,700 broadband subscribers as of end-2005. This is equivalent to 6.6% of the population. There are also an estimated 600,000 narrow band users.

Home Internet penetration figures stand at 18.7% of households. Almost 140,000 new broadband subscribers were added in 2005, a growth rate of 106% in 2005. This compares to 100,000 new broadband subscribers in 2004. The Government target is 400,000 by end-2006, namely, almost 10% of population or 27% of households. The Minister's challenge to industry is 500,000 broadband subscribers by end-2006, that is, approximately 12% of the population or 34% of households. This 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. Furthermore, Ireland is now one of the cheapest locations in the world for international leased lines.

The Government is addressing the infrastructure deficit in the regions by building high-speed open access metropolitan area networks, MANs in 120 towns and cities nationwide, on a phased basis in association with the local and regional authorities. Phase 1 of this programme has delivered fibre optic networks to 27 towns and cities throughout the country, which were built on time and under budget.

This programme has been extended to a further 90 towns in various locations nationwide. Design and procurement has already commenced in several regions and construction is due to start over the coming months. It is expected that these MANs will be completed during 2006 and 2007. These MANs will allow the private sector to offer world-class broadband services at competitive costs.

The Department also offers funding assistance for smaller towns and rural communities to become self-sufficient in broadband through the county and group broadband scheme. The scheme is technology-neutral, allowing the community to select the most suitable broadband delivery platform for the area. To date, over 150 projects have been approved for funding under this programme.

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 by the first half of 2006. The construction and installation phase is under way, and the project is on target for completion within the set timeframe.

Full details of the regional broadband programme can be found on the Department's website www.dcmnr.gov.ie.

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