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

The United Kingdom made a great investment in this area. Unfortunately, we are not in a position to do likewise. I must admit that as a result of the discussions I have had with ComReg, both recently and when the prospectus for the bidders was being formulated prior to the commencement of the auction process, I am reassured in this matter. As the Deputy might expect, we dealt with it in some detail. I do not believe I am misrepresenting ComReg which made this decision when I say that ideally it would be of the view that in a competitive marketplace there would be no requirement to stipulate a figure. The 70% population obligation figure is a stratagem which was deliberately designed to avoid cherry-picking. It will prevent a new entrant from outside from cherry-picking the most populous parts of urban areas and providing services therein. The requirement to cover 70% of the population means such behaviour will be ruled out.

The Government is delighted not only by the fact that €855 million was raised from the auction - in current circumstances this money is obviously very welcome - but also that four major bidders are competing in the market. There were real concerns about the auction as to whether in a small country such as Ireland that level of competition would emerge. In my initial reply I drew the Deputy's attention to the experience with 3G services and the fact that all of the operators significantly exceeded the obligation placed on them in the provision of such services. In the context of what I have just said and in conjunction with the commitments contained in the national broadband plan, we are determined to ensure the Deputy's fears which I fully understand will not be realised.

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