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

I propose to take Questions Nos. 23 to 25, inclusive, together.

Before responding to the question, I wish to inform Dáil Éireann that, as of today and under the commercial stimulus provided under the national broadband plan, Ireland has now become a global broadband leader with 13% of premises outside of our cities now with direct access to pure fibre, 1000 megabits per second, super-fast broadband. I am not aware of any other country on the planet that has achieved this particular milestone.

The procurement process for the national broadband plan state intervention phase will select a bidder, or bidders, who will roll out a new high speed broadband network to remote and rural areas not served by commercial operators. The successful bidder or bidders will build, maintain and operate this State intervention network for the next 25 years. Last Tuesday, 26 September 2017, was the closing date for bidders to submit their "Detailed Solutions" in the procurement process and I can confirm that my Department received submissions from two bidders. These bidders were Eircom Limited and the Granahan McCourt, Enet, SSE, John Laing Group plc consortium. This is a significant and positive milestone in the process and the path to a digitally equal Ireland. The submissions received means that we are at the final stages of this procurement process. This complex procurement process is being effectively managed by my Department's specialist NBP team. This detailed and extensive engagement has included over 150 hours of competitive dialogue between the NBP team and bidders, focused on the more than 2,000 pages of contract documentation provided to bidders. My Department's specialist team is now evaluating these two submissions.

The Department's team comprises a broad mix of expertise and experience which is ensuring a well managed procurement with the objective of delivering a quality and future-proofed solution for Ireland. The team is supported by expert consultants including KPMG, Mason Hayes Curran, Analysys Mason and Price Waterhouse Coopers. These teams include specialists in procurement, project management, engineering, commercial and financial analysts as well as legal advisors. There is also additional oversight in the form of a steering group, which oversees the strategy development, and a procurement board which oversees the procurement process. Both of these groups are chaired by my Department and comprise independent expert advisers. The National Development Finance Agency is providing specific assistance to the process as financial advisor to review the financial aspects of the project and act as an independent reviewer and evaluator on the value for money aspect of the national broadband plan. Just ahead of the closing date for "Detailed Solutions", SIRO formally communicated its withdrawal from the national broadband plan procurement process. In doing so, however, SIRO remains strongly committed to its original commitment to invest €450 million to provide pure fibre broadband, 1000 megabits per second, to 51 towns across Ireland on an open access basis. As of the end of last week, some 100,000 premises have been passed by SIRO. Notwithstanding SIRO's decision, the fact remains that this procurement process is a highly competitive one involving two strong operators in the telecommunications field. As the level of State subsidy required for the national broadband plan will be determined through the competitive tender process, it would be premature and not in the public interest to discuss costs while that procurement process is still in train.

When I was appointed Minister 16 months ago, only five out of ten premises in Ireland had access to high speed broadband. Today that is closer to seven out of ten premises and by the end of next year that will have risen to almost eight out of ten. By 2020, through a combination of commercial investment and State intervention, more than nine out of ten premises in Ireland, at least 91%, will have access to high speed broadband. Commercial operators have already committed to provide high speed broadband services, well above the minimum targets, to almost 1.8 million premises before 2020. This includes Eir’s commitment to 300,000 additional premises by end of 2018; Enet and SSE’s plan to provide high speed broadband to 115,000 premises in the west and north-west regions by 2019; SIRO’s plan to deploy to 500,000 premises in 51 regional towns; and Virgin’s plans to expand its high speed service to an additional 200,000 homes.

Just 12 months ago I released the 3.6GHz spectrum for auction. As a result Ireland is the first country to have successfully concluded a spectrum auction to facilitate the roll-out of 5G. We are therefore in the vanguard of Europe in deploying 5G nationally by both fixed and wireless operators. This allows them provide faster fixed wireless and mobile services to their customers. A number of the successful bidders are now looking to deploy fixed 5G and I have been informed by one company that it expects to cover 85% of the land mass of Ireland by 2019. This spectrum release clears the way for operators to enhance greatly the quality of existing services, extend coverage to new locations and more easily introduce market leading innovations and services across Ireland, in both urban and rural areas. In a welcome development, Imagine has already commenced the deployment of enhanced broadband services using advanced LTE fixed wireless technologies, particularly in rural and often more remote areas previously considered not to be commercially attractive. The other operators who secured spectrum - Vodafone, 3 Ireland, Eir mobile and Airspan - are actively developing their strategies so that they can commence commercial roll-out at the earliest opportunity.

While the commitments by commercial operators, underpinned by competition and technological advances enabling alternative and more cost-effective network and service deployment, has accelerated the delivery of high speed broadband services, the Government will continue to progress the procurement process under the NBP as quickly as possible. This will ensure the Government’s objective and commitment of providing high speed broadband to every premises in the country will be achieved. I am confident that the combination of existing commercial investment and State intervention will make Ireland an exemplar in Europe and beyond, in terms of providing high speed services to all citizens regardless of where they live.

See this speech in context