Eamon Ryan (Dublin South, Green Party)

I thank the Deputy for his comments. This is a complicated area given the market is rapidly changing, as are the technologies. The volume of data on the networks of the main operators in the State has increased by the order of 300% or 400% per annum. This is a rapidly changing area. Moving from voice to data services and arranging new data services will result in a very much changed industry in the next few years.

One of the crucial developments is to ensure that significant investment is made in our next generation networks. We cannot rely on existing technology, we must ensure significant investment is made to deliver our next generation of networks. One of the main drivers behind that process will be competition. If we do not make such investment, we will fall behind.

A related issue is that we must have a strongly regulated sector. Where we try to encourage an open access network, we must ensure there is real certainty across the board for different operators as to the developments of the network, the nature of the new technology to be delivered and the level of access. Regulatory certainty for other operators and for the incumbent is crucial to ensure that investment decisions can be made in a market that is complex. Those issues extend beyond the ownership issue of the network, be that State or private ownership. That is the first and foremost issue.

We must have a consistent and clear sense of direction, particularly for the main core access network to ensure other operators know the type of open operation that exists and what role they have to play in that regard. Such an open access network would benefit the incumbent. The volumes of transactions that can increase would lead to a stream of revenue that could result in it being a profitable business, which would be able to afford further investment. Strong regulatory pressure in the United Kingdom, which led to the opening up of the access network, has resulted in a significant increase in competition, one that has benefited the network provider as well as other operators.

Different questions surround the issue of opting for structural or functional separations. Structural separation has not been tried yet. We do not have an example of where this has been done elsewhere and therefore cannot cite an example of how such separation works. There are questions around the benefits that might derive from functions separation in having a retail arm and keeping pressure on a network company to make sure standards are maintained. In the regulatory system we put in place, whether there is functional or structural separation, we must ensure we do not introduce a rigidity into the system such that new technological developments would not then take place. In other words, we must ensure we do not have a system that is regulated in such a conservative manner to deliver a certain return that it does not allow for competition to function. This is a difficult regulatory issue, on the detail of which ComReg must work.

While we must be cautious and take due care to make sure that the regulatory system is right, we must also be willing to make bold decisions within a suitable timeframe. We cannot wait for many years to make decisions on how to proceed regarding the next generation networks. The industry is developing at such a speed that it requires us to make strong regulatory and policy decisions sooner rather than later. That must be done on the back of detailed analysis, examining international examples and consulting all the players here to ensure we do not discourage investment by other operators who have an interest in the whole market.

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