Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

I propose to take Questions Nos. 6, 8, 19 and 32 together.

In accordance with its statutory functions the Commission for Energy Regulation, ComReg, recently concluded an intensive process for the release, through an auction, of spectrum rights of use in the 800, 900 and 1800 Mhz frequency bands. The outcome of the auction for this spectrum was announced by ComReg on Thursday, 15 November. The auction raised some €855 million, of which at least €400 million is expected to accrue to the Exchequer in 2012. Apart from this outstanding financial outcome, the new spectrum will enable the widespread availability of much faster mobile broadband through 4G services. This is extremely important from a broadband policy viewpoint. In the national broadband plan which I published in August the Government committed to the provision of high-speed broadband, including a commitment of the availability of 30 Mbps to all premises in the State within the lifetime of the Government. Mobile broadband via 4G services is expected to play a key role in meeting this commitment, especially in rural areas. It is, therefore, of crucial importance that 4G services should have broad countrywide coverage.

It was a condition stipulated by ComReg that in respect of population coverage on services offered by the winning operators, all licence holders would have to attain and maintain a minimum coverage of 70% of the population and would have to do so within three years. In fact, ComReg considers that actual coverage levels are expected to exceed the obligation in this regard by a considerable margin, particularly in the light of the competitive nature of the market and the limited risk of roll-back of coverage from the existing levels. It should also be noted that coverage continues to be an important differentiator in the mobile telecommunications market such that any material deterioration in coverage by any one network would undermine its attractiveness to its existing and potential customers. Furthermore, the coverage proposals set were designed to ensure cherry-picking of high density urban areas would not occur.

In terms of the experience to date, it should be noted that the four existing mobile operators have achieved coverage levels exceeding those set out in their current respective licences. For example, for 3G services, Vodafone's coverage covers 90% of the population or 5% more than its obligation. Hutchison 3G, better known as 3, covers 96% of the population or 11% more than its obligation. O2 also covers over 90% of the population, which is more than its obligation. Comments by the service providers in the wake of the recent auction have confirmed their commitment to investment to leverage the spectrum allocation to maximum effect. This also indicates that the maximum coverage requirements will be exceeded.

The precise geographic breakdown of 4G services will, of course, be a matter for each service provider. I am, however, confident, based on the 70% requirement figure, previous experience and the statements already made by the winning bidders, that 4G services will be widely available throughout the country.

See this speech in context