Shane McEntee (Meath East, Fine Gael)
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Question 72: To ask the Minister for Communications, Energy and Natural Resources the progress on the National Broadband Scheme; his views on whether it will achieve 100% coverage; and if he will make a statement on the matter. [15454/08]

Eamon Gilmore (Dún Laoghaire, Labour)
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Question 78: To ask the Minister for Communications, Energy and Natural Resources the position regarding the commencement of the national broadband scheme; the qualifying criteria and application process for areas currently not served by broadband; and if he will make a statement on the matter. [14640/08]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 72 and 78 together.

The role of the Government is to formulate regulatory and infrastructure policies to facilitate the provision of high quality telecommunications services by competing private sector service providers. The widespread provision of broadband services continues to be a priority for the Government. In that regard my Department has undertaken initiatives to address the gaps in broadband coverage. These included providing grant aid under the group broadband scheme and ongoing investment in metropolitan area networks.

There are still some parts of the country where the private sector will be unable to justify the commercial provision of broadband services. Accordingly, the procurement process for a national broadband scheme, NBS, is under way. The NBS will provide broadband services to areas that are currently unserved and will ensure that all reasonable requests for broadband are met. Homes and premises that are more difficult to reach are also being examined and potential solutions are being considered. Consequently, it is expected that all homes and premises in currently unserved areas will be offered a broadband service.

The first phase of the procurement process — the pre-qualification questionnaire — is now complete and four candidates pre-qualified to enter the next phase of the procurement process. The four candidates were, in alphabetical order: BT Communications Ireland Limited Consortium, Eircom Limited, Hutchinson 3G Ireland Limited, and IFA-Motorola Consortium.

Following the withdrawal of the IFA-Motorola Consortium as a candidate, the remaining three candidates participated in competitive dialogue with my Department and are developing their proposed solutions to meet my Department's requirements for the delivery of broadband to the unserved areas of the country. It is anticipated that a preferred bidder will be selected and appointed in July 2008, with roll-out to commence as soon as possible thereafter.

Simon Coveney (Cork South Central, Fine Gael)
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While I feel like something of a broken record on this issue, there is nonetheless a number of questions I would like to ask the Minister about recent events. We know now that there will be a judicial review following a challenge taken by a satellite broadband company to the terms of reference for the national broadband scheme. Can the Minister outline what the basis of that challenge is? He obviously cannot get involved in making the case one way or the other because that is for the courts to decide, but he can certainly give us an outline as to the basis of the concern behind that legal challenge. Do the Minister and his Department anticipate that this will delay the national broadband scheme proceeding? The scheme was due to start from June onwards.

Perhaps more importantly, can the Minister clarify how an area qualifies to be part of the national broadband scheme? The Minister seems to be suggesting that they are areas where the private industrial sector says it cannot provide broadband under normal market conditions — in other words, there is market failure. However, the areas the industry says it cannot cover do not tally accurately with areas where consumers say they cannot get broadband. What will happen in small pocket areas after July when consumers contact me or the Department to complain that they cannot get broadband facilities, but the industry does not necessarily agree? A map on the Minister's own website marks in red areas of the country that supposedly cannot currently receive broadband but which will be covered by this scheme. Those areas do not tally with the reality of many parts of the country which cannot get it. Will the Minister clarify how areas qualify to benefit from this scheme?

Eamon Ryan (Dublin South, Green Party)
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First, I am reluctant to say anything in terms of anyone's court challenge, and particularly not to outline the case for someone from the other side. If the Deputy does not mind, I will restrict my comments in that regard.

Simon Coveney (Cork South Central, Fine Gael)
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Perhaps the Minister can comment on the timetable.

Eamon Ryan (Dublin South, Green Party)
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The timetable is that there is a hearing for a judicial review on 10 June. My expectation and hope is that it will not unduly delay the development of the completion of contracts and the roll-out of the programme. That is something that will be subject to judicial decision but my firmly held expectation is that we will continue this project on time and deliver as soon as possible because we do need it urgently as a piece of public infrastructure.

As regards how an area qualifies, the only way is to see what services are available at present. The nature of the scheme is designed to concentrate on areas that do not have coverage, which is exactly what it is doing. This is a changing area and broadband penetration has effectively doubled in the past year. Nine months ago we did not have a single customer on mobile broadband, while now there are 129,000 such customers. Therefore the facility is rolling out and changing in an evolving process about which we cannot be exact until we actually set the deadline. Even in the two or three months between now and that time we may see technology being rolled out. It is right for us to concentrate on areas that do not have coverage.

Simon Coveney (Cork South Central, Fine Gael)
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Is it the industry or the consumer that makes the case?

Eamon Ryan (Dublin South, Green Party)
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It is the technical and scientific assessment. There will always be houses that cannot be covered for a variety of reasons. Even in our current system under the universal service obligation, which we discussed earlier, there are houses that the fixed-line provider cannot get to. In such circumstances alternatives will always be put in place. In terms of broadband, the most likely development is the use of satellite to connect such locations if they cannot be connected by any other means. We are not leaving any houses behind. The aim of the scheme is to ensure that areas currently without broadband get it by whatever technology is selected by the winners of the competitive tender — whether it is Y-Mex, wireless, 3G or fixed-line. That is something the winning company in the tendering process will have to decide. The design of the scheme is to get to those areas that are not covered. One must use a map to decide what those areas are. The only way of deciding it is on the basis of scientific analysis of what is available.

Liz McManus (Wicklow, Labour)
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I refer to the idea that the consumer will be facilitated where it is technically possible. There is a stipulation that the scheme will provide for the consumer on reasonable request. That seems like a lot of wriggle room for a company to say that this is an unreasonable request and that it will not be provided for even though, from the point of view of the individual, it may be reasonable in enabling him or her to work from home in a rural area. Who will arbitrate on whether a request is reasonable? If we are dependent on the private company to provide, and it is allowed this wriggle room, it seems very easy to cherry-pick.

Does the Minister accept it is curious that he says satellite is the option in exceptional cases that cannot otherwise be provided for when the satellite providers are seeking a judicial review?

Eamon Ryan (Dublin South, Green Party)
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I said I am reluctant to discuss the details of the judicial review but there will always be exceptions, no matter what technology we deliver and what country one is in. By dint of geography there will be houses that cannot be covered as there are in the delivery of the universal service obligation with regard to fixed lines. In those circumstances, it is right for us to allow for an alternative technology. The companies have an interest in attracting customers — it is a way of building a customer base. Whatever technology is used, it is likely to involve masts and an extensive network of radio connectivity in some areas. One does not want to leave those customers behind. The specific decision on any individual house is a technical decision. Currently, ComReg, in conjunction with the companies, determines how the technical term of all reasonable requests is defined. That will continue as it works at present with Eircom or a fixed line provider.

Joe McHugh (Donegal North East, Fine Gael)
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Continuing in the same vein as Deputy McManus but bringing it to a local level, let us consider a small dispersed community with a small population, outside the unbundling loop and for whom fibre optic technology and wireless solution is not available. This is not hypothetical; I refer to places such as Meenletterbale, Leckemy and places like north Inishowen. Will there be a facility within the national broadband scheme to ensure that communities that are not profitable for a satellite solution are part of the 100% access? Hypothetically, if Eircom does not win the contract, will it be favourable to unbundling the exchanges?

Eamon Ryan (Dublin South, Green Party)
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Just as I do not wish to talk about a legal case, we are in the middle of a tendering process so I will not speculate on what a company might do.

Joe McHugh (Donegal North East, Fine Gael)
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Is it likely to?

Eamon Ryan (Dublin South, Green Party)
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The principle here is to get to those communities and the definition used is the areas that do not have coverage at present under mobile, fixed line or other wireless services. Satellite covers most of the country so that exists as a covering system but was not what we were examining in the mapping process. It was to do with the communities that do not have other technologies. There may be exceptions such as houses that are always difficult to get to. We must allow flexibility in that regard but the principle of the scheme is to get to communities with a new technological platform. To a certain extent, whatever company wins, the benefit from this process will be that it will increase competition and encourage other companies not involved in this scheme in rural Ireland. It is no harm to have competing platforms to get better coverage.

David Stanton (Cork East, Fine Gael)
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What is the penetration rate when the mobile broadband subscribers are stripped from the figures? How often is the broadband providers price comparison section of the Government's broadband website updated?

I understand from the programme for Government that there is a promise to extend the current free schemes to provide free broadband for older people. What progress has been made on the initiative and what timescale can we expect?

Simon Coveney (Cork South Central, Fine Gael)
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I have a question that will require a short answer. What will households be asked to pay under the national broadband scheme? Will it be an average market price, such as €15, €20 or €30 per month? Will it be the same across the country? How is the price determined per household or per business for the provision of broadband under the broadband scheme?

Eamon Ryan (Dublin South, Green Party)
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The intention is to replicate what is available in the rest of the country in these areas, in terms of speed and other conditions——

Simon Coveney (Cork South Central, Fine Gael)
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And on price.

Eamon Ryan (Dublin South, Green Party)
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——across a range of service issues, as I understand it. I am reluctant because one cannot be precise in terms of contracts when one is in the middle of a tendering process.

Simon Coveney (Cork South Central, Fine Gael)
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Surely they know what they are tendering for.

Eamon Ryan (Dublin South, Green Party)
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It is a competitive tendering process and the issue of tender documents is due on 28 April, as I said earlier at a committee meeting. I do not wish to be specific because I do not wish to restrict anything. In general, the principle is to have the same service as is available in the rest of the country.

I must revert to Deputy Stanton in respect of the penetration issue in terms of mobile providers. Up to the past month the OECD did not allow mobile figures to be included in penetration rates and this disadvantaged Ireland relatively because we have a high level of mobile penetration or mobile take-up compared to other countries. The size of households was another issue that disadvantaged us.

I must revert to Deputy Stanton in respect of updates on the price comparison website. The broadband for older people scheme is primarily an issue for the Department of Social and Family Affairs and I apologise for not being in a position to give more details. I will revert to the Deputy with specific details from the Department.