Dáil debates

Wednesday, 14 February 2007

Priority Questions

Telecommunications Services.

1:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 72: To ask the Minister for Communications, Marine and Natural Resources when there will be 100% availability of broadband throughout the country; the extent to which he expects the uptake to occur; the extent to which these targets compare to the development of broadband facilities in other European countries; if he has identified the issues that have impeded the development of broadband here; if he has directly or through the regulator set out measures to address the issues with particular reference to the needs of industry, the health services and the domestic sector; and if he will make a statement on the matter. [5723/07]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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The provision of telecommunications services, including broadband, is a matter in the first instance for private sector companies operating in a fully liberalised market, regulated by the independent Commission for Communications Regulation, ComReg. The role of Government is to implement regulatory and infrastructure policies to facilitate the provision of affordable, high quality telecommunications services by competing private sector service providers.

The Communications Regulation (Amendment) Bill, which was published this month, is primarily designed to strengthen the regulatory framework for the electronic communications sector. The Bill will enable ComReg to achieve one of its primary functions, the promotion of competition, thereby leading to better and more competitively priced telecommunications services for consumers. This Bill is on the priority list of legislation for enactment by the Government during the current term of the Dáil. I expect to bring it before the House shortly.

The Government has also taken the initiative to address market failure through investment in the construction of the high speed, open access metropolitan area networks, MANs, while also grant aiding rural broadband projects under the group broadband scheme. However, despite Government and private investment in broadband, there are parts of the country where the private sector is unable to justify the commercial provision of broadband connectivity. It is planned to address the question of availability of broadband to the remaining 10%-15% via a new scheme which, when it is fully rolled out, will ensure that all reasonable requests for broadband from houses and premises in rural areas are met. A steering group comprising representatives of my Department and ComReg is finalising the outline of the scheme. This new scheme will supersede the group broadband scheme.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Is the Minister aware of the seriousness of the deficiency in broadband availability in many urban and rural areas? Is he aware that the lack of facilities is similar to the lack of telephone facilities in the late 1970s and early 1980s? It is impeding the development of the industrial sector, the health services, the education sector and the entire economy. How will the Minister, along with the private sector, address these deficiencies in the short term given the years of expectations? The public service obligation should have been able to deliver this service in a much shorter period than has been the case.

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I am aware of the matters the Deputy raises. Parts of the country have poor broadband facilities. The Government initiated the MAN programme in 2002 and the group broadband scheme. It is now considering a new scheme to target 10%-15% of the country. Under its new management, Eircom has examined the matter and is willing to address some of the deficiencies.

There has been a massive increase in the number of subscribers to broadband, particularly in the past 12-18 months. In the past 12 months there has been an increase of 106% in take-up. In October 2004, I set a target of 400,000 broadband subscribers at the end of last year. The figure was exceeded in August 2006. At this stage, I expect that we have over 500,000 subscribers in Ireland. The percentage of households covered is over 11%, up from 3% at the start of 2005. The major increase in uptake is due to the greater availability, the demand side measures and the publicity given to the importance of broadband. We have not yet arrived, which is why we set up the national broadband scheme in conjunction with the private sector. We will announce tender details in the near future.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Has the Minister assessed the reasons for the delay in the provision of nationwide broadband? Is it due to failure on the part of the private sector or the Minister's or the regulator's lethargy? Will he address the issues that have caused this serious delay, such as investment, local loop unbundling, exchange enabling and the modern infrastructure required for a telecommunications service?

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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The reasons for the delay are obvious. Initially, the private sector did not invest. The dotcom collapse at the turn of the decade meant that there was little investment from the private sector. The Government decided in 2002 that it needed to stimulate the market. The private sector would respond that it is in the business of making money and should not be expected to provide broadband where it is not economic to do so. The Government addressed this through the group broadband scheme. The take-up of this was good in some areas but the scheme was not available in other areas.

The Deputy referred to the role of the regulator. He did everything in his power to make progress on number portability, local loop unbundling and other matters. He was thwarted at every attempt through the courts. Unofficially, I have heard that many of the difficulties with local loop unbundling are being addressed. If other difficulties arise, the Communications Regulation (Amendment) Bill will grant the regulator additional powers to deal with them. The Deputy has been supportive of the Bill.