Bernard Durkan (Kildare North, Fine Gael)
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Question 116: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the fact that the availability of broadband and relevant infrastructure here has almost the worst record in Europe; if he intends to issue directives or instructions to the various service providers and the regulator in an effort to accelerate the programme towards achieving relevant targets in view of the fact that in the European league Ireland's position has dropped from the top three to the last two with consequent implications for domestic and commercial customers; if the precise obstacles impeding development in this area have been identified; the action he proposes to take; the timetable involved to catch up with developments in other European jurisdictions; and if he will make a statement on the matter. [2523/06]

Noel Dempsey (Meath, Fianna Fail)
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The provision of telecommunications services and the development and roll-out of telecommunications technology is primarily a matter for the industry itself. The telecommunications market is fully liberalised and regulated by the Commission for Communications Regulation, ComReg, which is independent in the exercise of its functions, in accordance with the provisions of the Communications Regulations Act 2002.

In comparison to other European counties, private broadband service providers in Ireland were relatively slow in launching competitive, affordable broadband. However, the position is improving rapidly. In late 2004, the Government set a target of 400,000 broadband subscribers to be achieved by the end of 2006. I have, however, challenged the industry to strive for 500,000 subscribers by then. The Government's broadband target is to be within the top half of EU countries by the end of 2007. Since 2004, broadband subscriber numbers have more than doubled and the current take-up for broadband is approximately 10,000 per month and continues to increase across a range of technologies.

The latest quarterly data report published by ComReg on broadband delivery rates indicates broadband subscriptions had increased by 19% as of September 2005 to 208,000. DSL remains the largest platform for broadband access, representing 78% of subscriptions and a growth rate of 16% in the last quarter. The proportion of broadband subscriptions delivered over access platforms other than DSL has increased over the past 12 months. The estimated end December 2005 figure for broadband subscribers is 250,000, according to the regulator. In 2004 there were more than 80 Internet service providers whereas today more than 156 companies are listed by ComReg, with at least 45 different broadband offerings across a variety of technologies, including DSL, fibre, cable, leased lines and satellite technology. Wireless broadband technology is improving rapidly and the lowering of equipment prices has made this technology much more attractive of late. The use of fixed wireless local access is increasing, especially in rural areas that cannot obtain ADSL connectivity and the development of Wi-Max offers considerable potential in the future. New technologies can deliver broadband to virtually any broadband customer in Ireland.

Ireland is the lowest cost country in the OECD for international connectivity, our regional broadband pricing is on a par with the best in Europe and the price of basic broadband access is at the EU average.

Additional information not given on the floor of the House.

My Department's website, www.broadband.gov.ie, gives prices, service levels and contact details for each service provider offering a wide range of broadband products.

The rate of broadband uptake is dependent on a combination of factors. These include access by private sector service providers to suitable infrastructure as well as competition between broadband service providers and demand conditions for broadband in the economy. In addition to setting challenging targets to the telecommunications industry, the Government has taken a number of policy and investment initiatives to improve broadband availability.

In March 2004, a number of policy directions were issued to ComReg by my predecessor, the now Minister for Foreign Affairs, Deputy Dermot Ahern, relating to competition, broadband, wholesale and retail line rental, interconnection and leased lines, and national and cross-Border roaming. The direction on broadband required ComReg to use regulatory and enforcement tools, where necessary and subject to relevant requirements under European and national law, to support initiatives to develop broadband and remove regulatory barriers, if any exist, to such initiatives.

Local loop unbundling, LLU, is mandated by a European Council regulation and responsibility for its implementation is a matter for ComReg under the Communications Regulation Act 2002 and the transposed EU regulatory framework for electronic communications networks and services. I have no powers to issue instructions to service providers on broadband.

Given that the level of investment by the sector in high-speed broadband infrastructure has failed to keep pace with the demand for broadband, my Department is addressing the local infrastructure deficit by building high-speed, open-access, fibre-based metropolitan area networks, MANs, in 120 towns and cities nationwide. This is taking place on a phased basis, in association with the local and regional authorities, using European Regional Development Fund and Government funding under the National Development Plan 2000-2006.

Phase one of this programme has so far delivered fibre-optic networks to 27 towns and cities. The programme has been extended to a further 90 towns nationwide. Design and procurement is well advanced in most regions and construction is due to start early this year. These networks will be completed during 2006 and 2007. They allow the private sector to offer world-class broadband services at competitive costs.

My Department also offers funding assistance for smaller towns and rural communities to become self-sufficient in broadband through the county and group broadband scheme. This scheme is technology-neutral, allowing the community to select the most suitable broadband delivery platform for the area. To date, more than 150 projects have been approved for funding under the programme. In addition, a joint industry-Government fund of €18 million has been established for the broadband for schools programme, which will provide every school in the country with broadband during 2006. Full details of the regional broadband programme can be found on my Department's website, www.dcmnr.gov.ie.

Bernard Durkan (Kildare North, Fine Gael)
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Is the Minister aware that Northern Ireland, which had a similar start date in respect of the provision of broadband facilities, now has 100% service? Is he further aware that the original target set by his Department of 500,000 connections has been miserably missed and that a Forfás report issued at the end of 2005 clearly indicates a serious deficit in terms of broadband penetration as compared with other industrialised countries with which we are in competition? Can the Minister take any initiatives to accelerate the speed with which broadband is made available and allow for the delivery to the customer of the benefits of deregulation and local loop unbundling, removing all the obstacles that have proven so significant in regard to broadband provision?

Noel Dempsey (Meath, Fianna Fail)
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Provision of broadband services in Northern Ireland is part of the United Kingdom roll-out, which began considerably earlier than our own. As the Deputy mentioned, there is now 100% availability in the North. However, the figures for uptake of broadband technology there are no better than those for the Republic. It may be the case that one can bring the horse to water but one cannot make it drink.

The rate of broadband uptake in the Republic has accelerated in the last 18 months and there is no part of the country in which it is not available. I agree with the Deputy, however, that the cost is prohibitive in some rural areas. The initiatives we have undertaken to ensure broadband is rolled out, including the MANs programme, the broadband for schools programme and the county and group broadband scheme, are well known to the Deputy. The response to these efforts by the Government to ensure the rapid spread of broadband throughout the country has been positive.

It is good that a number of reports have highlighted the necessity to continue efforts to make broadband available. Many of these reports, however, including that issued by Forfás and other international reports, would benefit from more precise measurement techniques because they do not always compare like with like. While our basic provision of broadband is one megabyte, some of the other European countries with which we are compared provide less than half that bandwidth for broadband.

In regard to the Deputy's final question, I reiterate that I have powers in this respect. My predecessor used those to issue directions to ComReg on competition and costs. That is kept under constant review. The other area where I can be helpful and proactive is in bringing forward legislation — as I will during the first half of this year — that will give extra powers to ComReg.

Bernard Durkan (Kildare North, Fine Gael)
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Given the experience of the past two years, does the Minister believe it will be possible to deliver to the customer, whether industrial or domestic, the benefits of deregulation and local loop unbundling? Does he see any obstacles not possible for resolution given that the original target was for 500,000 connections more than a year ago, these targets have been revised downwards since on two occasions and it appears there is no chance of achieving these modified targets?

Tommy Broughan (Dublin North East, Labour)
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He is the Minister for U-turns.

Bernard Durkan (Kildare North, Fine Gael)
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One could put an S-hook on it.

Noel Dempsey (Meath, Fianna Fail)
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I am not aware of the target to which the Deputy refers. Since my predecessor's time, the target in my Department has always been 400,000.

Bernard Durkan (Kildare North, Fine Gael)
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Some 500 connections by the end of 2004.

Noel Dempsey (Meath, Fianna Fail)
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I challenged the industry because I believe it can deliver 500,000 connections by the end of next year. There have been many challenges in this regard. The regulator attempted to expedite the local loop and bundling, and that ended up in the High Court. No matter how good the regulation, the system in place from a European point of view and from our national legislation point of view is that once a direction is given a person or company has a right to appeal and go to the courts. There is not much I can do to prevent them from doing so. The last decision of the regulator was fought in the High Court precisely because they tried to remove Eircom's right of appeal to the LLU direction given. ComReg is continuing to work with the fixed line incumbent and the alternate operators to try to agree a methodology for an early roll-out of LLU. I will assist the process in any way I can.