Dáil debates

Tuesday, 12 May 2009

 

Telecommunications Services.

3:00 pm

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)

To correct a detail, Boxer did not pull out of the contract. It did not agree a contract with the BCI or RTE on the transmission side. A contract was not ended, there was an inability to agree a contract. That is a real concern and it is a pity. Everyone would admit the timeline involved is not ideal and we did not wish for it. We sought the signature of a contract and for the services to be in place quickly. There was a welcome development. However, at least in the process organised by the BCI there is a system where an alternative bidder may be approached.

I have confidence in the process and I do not believe the companies involved are simply going through the motions. There is no obligation on a second bidder or any other bidder to enter into such negotiations or to give an expression of interest. However, I am not surprised it has done so because, I imagine, for each of the companies involved there is a very significant strategic benefit in terms of involvement in the new DTT services.

Although the economy is in difficult straits and companies are in difficult times as a result, these are solid, profitable, effective, well-managed companies. Arqiva is the fourth company in the consortium, which the Deputy forgot to mention. This is its strategic business decision. If I were in the telecommunications, broadcasting, or network services business, as these companies are, I would view this as a significant opportunity, and, therefore, I have every confidence. Although I cannot be certain how the negotiations will proceed there is no question of a false confidence. I am deliberately not involved in the licensing or contract negotiation process. However, it is viable for us to move very quickly to get a DTT service.

It is true that RTE is under financial pressure in terms of delivering DTT services. The downturn in advertising has placed on RTE a real commercial difficulty, and this is the case with every other station at present. However, everyone must face a fundamental reality in this process. We will switch off the analogue system in 2012 because there is significant economic benefit for the country to remain on the path towards investing in a network to provide digital services and to switch off analogue. We simply cannot turn back. It would show a lack of vision in terms of the development of our spectrum on broadband and a whole range of other services. Although it is difficult for RTE, and I fully accept it is in a very difficult position financially, we are fully committed to the network and to the ability to switch off by 2012.

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