Joe McHugh (Donegal North East, Fine Gael)
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Question 7: To ask the Minister for Communications, Energy and Natural Resources the negotiations that have taken place on cross-Border co-operation in providing the infrastructure for broadband; and if he will make a statement on the matter. [28988/07]

Eamon Ryan (Dublin South, Green Party)
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The provision of telecommunications services in both the Republic of Ireland and Northern Ireland is a matter for the private sector. Service providers based in both jurisdictions offer services in each other's home market. Service providers in both jurisdictions also use each other's networks where commercially appropriate.

There is also cross-Border co-operation between both administrations. As part of the national development plan, the Government is working with the Northern Ireland authorities under the INTERREG co-operation programme to provide better broadband infrastructure on a cross-Border basis.

Several projects to provide broadband infrastructure on a cross-Border basis have been undertaken in recent years under the INTERREG North-South cross-Border co-operation programme, including the establishment of a cross-Border network of fibre and duct between Dublin and Belfast, the creation of a digital corridor between counties Armagh and Monaghan and the creation of high speed cross-Border networks between third level institutions in the north west via a new fibre link from Letterkenny to the Derry area.

There is also a cross-Border project promoting the use of broadband, the Broadband Awareness campaign. Phase 2 of this project, which has begun, will promote the safe use of broadband and Internet technologies. There are ongoing discussions with the Northern Ireland authorities on possible cooperation on broadband infrastructure under the new INTERREG North-South cross-Border programme. It is hoped to continue the cooperative working relationship with the authorities in Northern Ireland on projects for the development of broadband infrastructure on a cross-Border basis where appropriate.

Simon Coveney (Cork South Central, Fine Gael)
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We have much to learn from Northern Ireland's broadband roll-out. It has 100% connectivity unlike the 15% to 20% of this country which has no capacity for a broadband service. The EU is moving towards creating a single telecommunications market, be it for mobile telephones or fixed-line telephony infrastructure. In the same way as the Republic of Ireland and Northern Ireland led the way in creating an all-island market for mobile telephony roaming charges, can a similar arrangement be reached for the regulation of broadband networks on the island of Ireland?

Eamon Ryan (Dublin South, Green Party)
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I support the development of such an all-island network where it is possible. One of the larger telecommunications operators, BT, is an incumbent in the North and a major provider in fixed-line services in the South. Eircom, the incumbent in the South, has won a contract for a significant amount of telecommunications business in the North. In the mobile and 3G telephony areas, an all-island approach is developing. Any development that will encourage economies of scale and provide a more competitive market is to the benefit of the people, which I support.

Ciarán Lynch (Cork South Central, Labour)
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Question 8: To ask the Minister for Communications, Energy and Natural Resources his views on the legal action threatened by Eircom over the Government development of MANs; and if he will make a statement on the matter. [28970/07]

Eamon Ryan (Dublin South, Green Party)
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Eircom has not issued any legal proceedings against the Department. It would not be appropriate to discuss the likelihood or otherwise of any potential legal action.

Liz McManus (Wicklow, Labour)
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I do not want to cause any legal difficulties but would the threat of legal action have an influence on strategic planning by the Department? Up to €170 million was allocated to phase 2 of the MANs roll-out and a phase 3 is planned. Will the Minister give a figure for that phase? The larger the amount allocated, the more likely the danger of legal difficulties with EU law.

Has the Minister considered the request by Shannon Development for €25 million to develop a next-generation network in its area on a pilot basis?

Eamon Ryan (Dublin South, Green Party)
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MANs has State-aid clearance so a legal challenge would not hold up. This is open access infrastructure. There is no restriction whatsoever on any company. I encourage every company to use MANs because they are the latest high quality fibre optic networks in towns in the absence of which broadband services would not have been introduced. Deputy Coveney sat on the Oireachtas committee which considered this issue and knows that the concept of MANs came at a time when there was no developing competition or broadband development. In the absence of competition between providers they were a successful spur to starting a market here.

This is a rapidly-changing area. Some of the main fixed line networks have seen an 800% increase in data traffic in the past two years.

Liz McManus (Wicklow, Labour)
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Maybe the Minister will answer my question now.

Eamon Ryan (Dublin South, Green Party)
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There is significant pick up in traffic on the MANs.

Liz McManus (Wicklow, Labour)
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What kind of pick up?

Eamon Ryan (Dublin South, Green Party)
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It was in the region of 65% in the past year, according to the latest figures. That is not as high as I would like it to be. Technology is changing rapidly. The MANs were a long-term investment in high quality open access infrastructure. My Department is preparing the final draft of a next generation networks paper for internal and then public discussion. Instead of fibre optic lines going through an exchange, these networks will involve lines going to a cabinet on a street to serve faster broadband speeds. It is far from certain which technologies will work and how they will interact with wireless and other technologies. We must continue to review the role of the MANs but they will have an important long-term role in providing a high quality open access fibre network.

Phase 3 of the MANs will involve a review of prioritisation of certain projects such as Shannon, an important industrial area, about which there is concern across the House, and we will respond to that need.

Liz McManus (Wicklow, Labour)
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When?

Eamon Ryan (Dublin South, Green Party)
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That will be a Cabinet decision but I hope it will be taken soon.

Simon Coveney (Cork South Central, Fine Gael)
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I can see now why the Minister did not have a figure for the cost of the roll-out of MANs phase 2 or 3 because he has just told us that the MANs need to be reviewed. I agree with him but that is inconsistent with what we were told earlier, that MANs phase 2 will go ahead as planned. If Eircom splits into two companies, as it suggests, one of which would be a wholesale service provider and network operator with an open access infrastructure competing with State funded infrastructure, the Minister may find himself in some legal difficulty. I do not want the State to have to fork out a fortune to contest a difficult case.

Eamon Ryan (Dublin South, Green Party)
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There is a lead time for the construction of MANs. Most of the MANs for construction have been contracted a year in advance. The funding is not simply switched on and off. A review would therefore not have an immediate effect. Eircom has approached us about its proposal to split off its network business and we are discussing this in a general way. There is no reason an open access network would pose a competitive threat because all operators could use it. I welcome any innovative approach by any company to avail of that infrastructure.

Simon Coveney (Cork South Central, Fine Gael)
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The MANs would be duplicating the Eircom infrastructure.

Liz McManus (Wicklow, Labour)
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What is the Minister's policy on a separation in Eircom? Does he favour a structural or functional separation?

Eamon Ryan (Dublin South, Green Party)
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The policy is to take the approach from the company and go into the details to find out the merits of each form of separation. I do not wish to rule out any outcome but would take into account several factors. The functional separation in the UK seems to work effectively with BT operating a wholesale business. The advantage there is that a retail arm remains which has a check on the quality of or need for good services in the wholesale arm. This is a complex question. The company has not reached a conclusion on whether it will be functionally or structurally separated.

Liz McManus (Wicklow, Labour)
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Does the Minister have a say in this decision?

Eamon Ryan (Dublin South, Green Party)
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The State has a say in respect of the broad policy objectives it might want to achieve. We represent the public interest which is defined by two measures. We must ensure that the supply of broadband services is ahead of demand so that there is no restriction on the development of new technology of which we might wish to avail.

Simon Coveney (Cork South Central, Fine Gael)
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That will be a first.

Eamon Ryan (Dublin South, Green Party)
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That has to be island-wide, taking into account the differing circumstances in rural and urban communities. We must also bring the prices down. Any regulatory decisions of the State are based on those two considerations.