Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Question 107: To ask the Minister for Communications; Energy and Natural Resources his views on whether there should be a universal service obligation imposed on mobile phone service providers. [30797/12]

Pat Rabbitte (Dublin South West, Labour)
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The management of the radio spectrum is a statutory function of the Commission for Communications Regulation, ComReg, under the Communications Regulation Act 2002, as amended. In accordance with this function and with its obligations under national and EU law, ComReg is obliged to ensure the efficient management and use of the radio frequency spectrum. ComReg is independent in the exercise of the spectrum management function. In line with its statutory functions, ComReg has consulted extensively on its proposals for the release of spectrum rights of use in the 800 MHz, 900 MHz and 1800 MHz frequency bands, which are used to provide licensed mobile telephone services. I am advised that ComReg received considerable interest in this consultation process, which has resulted in a decision document for the award of several individual rights of use in the above radio spectrum bands. This document, known as ComReg document 12/25 and decision 04/12, was published on 16 March 2012 and is available on ComReg's website.

ComReg's information memorandum for this award process details the processes and procedures that the regulator is employing to implement its substantive decisions. This document is also available on ComReg's website. It is known as ComReg document 12/52 and was published on 25 May 2012. The reasons, analysis and other material relied upon by ComReg in support of its decisions on the minimum coverage and roll-out requirements are set out in section 5.5 of document 12/25.

Among other things, ComReg considered that actual coverage levels are expected to exceed the 70% population obligation by a considerable margin given the competitive nature of the market and the limited risk of roll-back of coverage from the existing levels.

Additional information not given on the floor of the House.

The importance of maintaining the existing levels of mobile telephony and mobile broadband coverage has been raised with ComReg by my officials. While the outcome of the forthcoming multi-band spectrum release process can not be anticipated, I understand ComReg is not expecting any reduction in coverage as a result of this process.

The four existing mobile operators have achieved coverage levels exceeding those set out in their current respective licences. For example, for third generation or 3G services, Vodafone's coverage covers 90% of the population, 5% more than its obligation. Hutchison 3G, better known as "3", covers 96% of the population, 11% more than its obligation. O2 also covers 90.5% of the population, which is more than its obligation. Furthermore, as a consequence of the Government's national broadband scheme and rural broadband scheme, all parts of Ireland will have access to a basic broadband service by 2013. ComReg's coverage proposals are designed to facilitate the possible entry of new operators in a manner that would ensure cherry-picking of high density urban areas would not occur. With regard to the question of whether a universal service obligation should be imposed on mobile phone service providers, I advise the Deputy that the setting of such obligations are subject to the EU universal service directive. The directive requires the setting of a universal service obligation to provide a network connection at a fixed location and does not provide for such an obligation in respect of mobile coverage.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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I thank the Minister for his reply. As he is aware, there is no designated universal service obligation provider for the mobile telephone sector at present. However, Eircom is the designated provider for landlines. I understand ComReg is currently deciding whether to renew it. I raise the issue because I fear that if ComReg does not impose a universal social obligation on mobile telephone operators, successful bidders for the new licences will concentrate on large urban areas, to the detriment of the rural areas in which 30% of the population live. ComReg has indicated that competition among companies for customers in rural areas will ensure coverage but I am not so sure that will be the case. Supply, demand and profit will be determining factors. Does the Minister agree that a universal social obligation should apply, as is the case for landlines and postal services?

Pat Rabbitte (Dublin South West, Labour)
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Deputy Ferris is correct that mobile services are not subject to the same universal social obligations as fixed lines. I started out from a similar position to that of the Deputy. My officials have discussed this issue with ComReg on several occasions and I have met its representatives on more than one occasion. ComReg is adamant that difficulties will not arise for a number of reasons. First, the infrastructure is in place and the masts have already been erected. There will be no roll-back on that. Second, the obligations on Vodafone, 3 and O2 in respect of 3G services were greatly exceeded. Third, mobile telephone companies are already competing to provide services and there is no question of a diminution of that competition. The 70% idea arose principally because it was considered desirable that such a large figure be a requisite to prevent cherry picking by a new entrant to the market. A new company would not be able to pick populous urban centres while avoiding regional, provincial or rural areas.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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I have a supplementary question on a slightly different matter. I have been in touch with the Minister's office and ComReg regarding Meteor's refusal to release an individual from a mobile telephone contract even though it has been proven that it cannot provide her with a service. ComReg has indicated that it powerless to do anything about the matter. Can anything be done for people who enter into contracts and discover at a later stage that the service is unavailable in their home despite a commitment from the service provider?

Pat Rabbitte (Dublin South West, Labour)
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If the service provider agreed contractually to provide the service, it seems to me it is obliged to provide it. I would need to see the details of the contract but I would be happy to raise the matter with the authority that has statutory responsibility for consumer protection in this area if the Deputy outlines the details.