Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

The programme for a partnership Government commits to the delivery of high-speed broadband under the national broadband plan as a matter of priority. This is being achieved through private investment by commercial telecommunications companies and a State intervention under the national broadband plan in areas where commercial investment is not forthcoming.

On 5 July 2016, the Government selected the commercial stimulus model as the optimum ownership model for the network that will be part-funded by the Exchequer. The Government considered two ownership models, having narrowed down the options last December from five models. The two models are the commercial stimulus model under which the private sector finances, designs, builds, owns and operates the network, with contractual obligations to the Department, and the full concession model under which the private sector finances, designs, builds and operates the network with contractual obligations to the Department. In the latter model, assets funded by the State are handed back to the State after 25 years, while commercial assets that support the national broadband plan infrastructure would however remain in private ownership.

Both models will deliver the same network, with the same service specifications and controls for 25 years. In both models, the winning bidder or bidders will be subject to stringent contract provisions to ensure the network delivers quality, affordable high-speed broadband to all parts of Ireland that cannot access services.

The Department has completed detailed costings, down to every individual premises in the intervention area. On that basis, it has modelled the likely cost of each ownership model. It would not be appropriate to publish the expected cost of building the network, the likely cost to the State or the expected terminal value of the network while a major public procurement process is under way. I do not intend, therefore, to indicate the overall estimated Exchequer funding parameters or projected costs or values of the network.  Ultimately, the costs will depend on the price bidder quote in the tender process. The future capital value of the network will rely on a variety of factors, including the level of demand, technology developments over the next 25 years and potential alternative networks. Any estimation of the value of the network in 25 years' time would be highly speculative.

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