Dáil debates

Thursday, 6 April 2006

Other Questions.

Telecommunications Services.

3:00 am

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein)
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Question 7: To ask the Minister for Communications, Marine and Natural Resources if he will report on the roll-out of broadband here; the percentage of people who have access to it; the number of homes that have broadband connections; and how Ireland fares in comparison with the rest of Europe. [13765/06]

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Question 30: To ask the Minister for Communications, Marine and Natural Resources Ireland's position in regard to availability, quality and cost of broadband services in the European league; if he has in mind plans to encourage bringing the services here into line with other countries; and if he will make a statement on the matter. [13834/06]

Photo of Michael NoonanMichael Noonan (Limerick East, Fine Gael)
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Question 106: To ask the Minister for Communications, Marine and Natural Resources when he expects the provision of broadband and associated facilities to achieve the same levels as in other jurisdictions with which Ireland competes; and if he will make a statement on the matter. [13809/06]

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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I propose to take Questions Nos. 7, 30 and 106 together.

The provision of telecommunications services, including broadband, is a matter in the first instance for the private sector companies operating in a fully-liberalised market, regulated by the independent Commission for Communications Regulation, ComReg.

In comparison with other European states, broadband providers in Ireland were slow in launching competitive, affordable broadband. The lack of competition between providers and the reduction in investment in infrastructure in the aftermath of the dot-com crash weakened the initial roll-out by providers here. The situation, however, is improving rapidly and the level of uptake is consistent with the stage of development of the market. Ireland is now the fastest growing broadband economy in the EU. The latest ComReg quarterly report states there are 270,700 broadband subscribers as of end-2005. This is equivalent to 6.6% of the population. There are also an estimated 600,000 narrow band users.

Home Internet penetration figures stand at 18.7% of households. Almost 140,000 new broadband subscribers were added in 2005, a growth rate of 106% in 2005. This compares to 100,000 new broadband subscribers in 2004. The Government target is 400,000 by end-2006, namely, almost 10% of population or 27% of households. The Minister's challenge to industry is 500,000 broadband subscribers by end-2006, that is, approximately 12% of the population or 34% of households. This 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. Furthermore, Ireland is now one of the cheapest locations in the world for international leased lines.

The Government is addressing the infrastructure deficit in the regions by building high-speed open access metropolitan area networks, MANs in 120 towns and cities nationwide, on a phased basis in association with the local and regional authorities. Phase 1 of this programme has delivered fibre optic networks to 27 towns and cities throughout the country, which were built on time and under budget.

This programme has been extended to a further 90 towns in various locations nationwide. Design and procurement has already commenced in several regions and construction is due to start over the coming months. It is expected that these MANs will be completed during 2006 and 2007. These MANs will allow the private sector to offer world-class broadband services at competitive costs.

The Department also offers funding assistance for smaller towns and rural communities to become self-sufficient in broadband through the county and group broadband scheme. The scheme is technology-neutral, allowing the community to select the most suitable broadband delivery platform for the area. To date, over 150 projects have been approved for funding under this programme.

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 by the first half of 2006. The construction and installation phase is under way, and the project is on target for completion within the set timeframe.

Full details of the regional broadband programme can be found on the Department's website www.dcmnr.gov.ie.

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein)
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Does the Minister of State not accept that the State's broadband coverage is shameful and as a result the Government has decided to privatise Eircom? In the Six Counties, 100% broadband saturation has been reached, compared with the figures of 1.7% coverage in the Twenty-six Counties last year.

The European Commission recently criticised Ireland for being one of the slowest movers in the provision and usage of Internet technology. If the Government is committed to the idea of a knowledge-based economy why is broadband take-up in Ireland among the lowest in the European Union?

The Minister of State puts it down to lack of competition but are we not awaiting the goodwill of private companies and relying on private investors? If the Government had held on to the Eircom shares it could have invested those hundreds of millions of euro that went to private speculators.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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The State is providing funding for the roll-out of broadband. As outlined, the MANs project is going to 120 towns and cities nationwide, with phase 1 completed and phase 2 under way. The Government-funded schools broadband project will be completed this year. The county and group broadband scheme is grant-aided by the Government and my Department.

We are disappointed in the response from the private sector and that is why the Department got involved and provided substantial sums of money for the three projects I have named.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Notwithstanding the Minister of State's explanation for the slowdown in the dotcom sector, does he agree that the real reasons for the slow provision and take-up of broadband were Government inertia and ineptitude, its failure to recognise that the situation had changed, the lack of investment in the infrastructure and the lack of a driving force in the Department? The dividends drawn from the infrastructure as a result of the new situation should have been re-invested in the infrastructure instead of the other way around. Does the Minister of State accept that the Department, which should have been the driving force, failed to recognise the danger signs and let matters run along?

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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As I stated in my reply, the Department's target for this year is 400,000 by the end of the year.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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It is the same target as last year.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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We have invested substantial sums of money in the MANs, rural areas and school projects and this investment will continue. As I outlined earlier, we are seeking a further €6 million to continue to invest in major towns throughout the country where the MANs project does not operate.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Is it not true that when Deputy Noel Dempsey became Minister for Communications, Marine and Natural Resources, he stated during a visit to UCD that he wanted 600,000 lines by the end of 2006? He then changed his target. He is only halfway there. Every Deputy receives e-mails, or telephone calls in the case of people who do not have e-mail outside work, in respect of broadband. One such call I received this week came from a newly expanding area in Wexford. The person who contacted me was very irate because they had done everything possible to obtain a broadband connection but still had not been connected, despite the fact that a Minister comes from the area in question. It is very embarrassing for all of us that the situation regarding broadband services is so poor.

Has the Minister of State consulted the Australian venture capitalists, Babcock & Brown? Representatives from the company visited Dublin in recent weeks and sought out Opposition spokespersons and other relevant individuals. Babcock & Brown appears to have a very clear vision of what it wishes to do, which is to re-organise the network as a separate company which is not connected with the retail division and Meteor. Has the Minister of State met the company? What are his views in respect of the possible impact on the network of a takeover of Eircom by Babcock & Brown?

When will the Minister of State bring forward legislation relating to ComReg, which we have sought for a long time? When does he plan to strengthen ComReg? We receive all its press releases but everything in them is aspirational. Why can we not have a real regulator like Ofcom in the UK?

What is the Minister of State doing to stimulate demand? He spoke about the schools programme but is it not pathetic that we do not have a dedicated educational programme? Why can we not give every child a laptop and produce new pedagogical material that reflects how teaching will be revolutionised in the new era? If it is not possible to introduce such measures now, why does the Minister not announce that the next Government will introduce them?

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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I understand that I will answer a later question which concerns Babcock & Brown, a company which is interested in a takeover of Eircom. Department officials have held meetings with the company.

I am aware of the broadband related problems in Wexford. I sent a message to the woman in question which informed her that if she contacted the Department, it would resolve matters for her.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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She knows I have Wexford connections.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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Deputy Broughan is keeping a close eye on Wexford. What was the subject of Deputy Broughan's next question?

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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My questions concerned ComReg and education.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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I understand that the Bill relating to ComReg is being prepared and will be available shortly. The Department will continue to drive broadband and achieve our targets, as I stated earlier.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The Government is not achieving its targets.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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We are getting there.