Dáil debates

Thursday, 25 September 2014

Topical Issue Debate

Broadband Service Provision

3:20 pm

Photo of Alex WhiteAlex White (Dublin South, Labour) | Oireachtas source

Since market liberalisation in 1999, broadband services are delivered through private sector operators. The provision of telecommunications services, including broadband services, is primarily a matter for the service providers concerned which operate in a fully liberalised market regulated by the independent regulator, the Commission for Communications Regulation, ComReg. Details of broadband services available in each county can be found on several websites, including ComReg's website at www.callcosts.ie, as well as the websites of individual commercial operators. Decisions by private operators, including Eircom, relating to investment in infrastructure to provide broadband services are taken purely on commercial grounds, having regard to the cost of service provision and the anticipated revenue returns from any such investment.

Eircom has made public announcements concerning its plans for a roll-out of advanced fibre networks in a large number of towns and cities. This is part of a major commercial investment by Eircom in which it intends to roll out an advanced high speed broadband network to almost 1.6 million houses and businesses across the country. In this regard, I would direct the Deputy to the Eircom press announcement on 29 November 2013 when the company listed all the areas it has plans to upgrade.

The area of Banteer, County Cork, is on this published list and Eircom plans to upgrade this exchange in the coming months. Decisions such as this are strictly commercial in nature. The Deputy will, accordingly, appreciate I do not have a statutory authority to direct commercial companies such as Eircom in this regard.

The Government welcomes the investment by the commercial sector of some €2.5 billion in new infrastructure and services and is strongly supportive of a robust and competitive telecoms market. Examples of this significant investment are the accelerated investment by Eircom. In 2012, when we first published the national broadband plan, Eircom was committed to addressing 1 million homes with its e-fibre service. It launched this service just over a year ago and has already passed 1 million premises. It has committed to passing 1.6 million homes by mid-2016. This investment programme represents a major advancement in the availability of high-speed broadband services. The exchange at Banteer is part of this programme.

In 2012, when the national broadband plan was launched, UPC committed to services of 25 Mbps to 100 Mbps. Two years on, over 700,000 homes can already access minimum broadband speeds of 120 Mbps and up to 200 Mbps. Businesses can access speeds of 500 Mbps. The ESB and Vodafone have established a joint venture company which will invest €450 million to deliver fibre-based broadband services off the ESB distribution network offering speeds from 200 Mbps to 1,000 Mbps. The first phase of this project will reach 500,000 premises in 50 towns.

Mobile telephone operators are now rolling out 4G services nationwide, as well as enhancing the quality and availability of 3G services. However, operators have made it clear to the Government that there are large parts of the country which they cannot address commercially. The Government's statement of priorities for 2014 to 2016 reaffirms our commitment to delivering a State-led broadband intervention in the areas where commercial investment is not forthcoming. Through the national broadband plan, the Government aims to ensure high-speed broadband is available to all citizens and businesses. In 2012, we predicted the need for the State to address 1.3 million of Ireland's 2.3 million premises. Thanks to investment by Eircom and others, that area has now reduced to 900,000 premises, a 30% reduction. This could reduce further with the proposals by the ESB and others in the industry.

My Department, in conjunction with the industry, is finalising a mapping exercise which will identify the precise areas of commercial investment, as well as those areas that require a State-led intervention. The maps will be published later this year for public consultation. They will be dynamic and subject to change as new commercial investments are announced or rolled out in the future. This is an important milestone in the overall project which will feed into the project implementation strategy which we will publish in 2015 for consultation.

Consumers can be assured that through the combination of commercial and State-led investment, the Government intends to ensure everyone can access high-quality broadband services, regardless of where they live or work.

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