Dáil debates

Thursday, 12 June 2014

Ceisteanna - Questions - Priority Questions

Broadband Services Provision

10:30 am

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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1. To ask the Minister for Communications, Energy and Natural Resources if he will provide an update on broadband provision; the cost of broadband here as compared to in other member states of the European Union; the progress made in providing broadband in rural areas; and if he will make a statement on the matter. [24807/14]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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The Government's national broadband plan aims to radically change the broadband landscape in Ireland by ensuring high speed broadband services, comparable with high speed services available across the European Union, are available to all citizens and businesses. This is being achieved by providing a policy and regulatory framework to accelerate and incentivise commercial investment and a State-led intervention in areas where it is not commercial for the market to invest.

Since publication of the plan, investments by the commercial sector are under way and, in some instances, have been accelerated in both fixed-line and wireless high speed broadband services. Commercial operators, combined, have either invested, or committed to invest, over €2 billion in their Irish networks, delivering high speed broadband to homes and businesses. For example, eircom is rolling out a €400 million investment offering broadband speeds of up to 100 Mbps - the service is already available to over 800,000 addresses, with planned coverage to reach 1.4 million addresses by 2016; UPC has invested over €500 million in upgrading its cable network - over 700,000 homes can already access minimum broadband speeds of 120 Mbps and up to 200 Mbps, while businesses can access speeds of 500 Mbps; the ESB is engaged in a new project allowing a fibre network to be rolled-out on its existing electricity infrastructure - the company plans to establish a joint venture company to construct a fibre network directly to 450,000 premises outside Dublin; mobile operators have launched 4G high speed mobile broadband services and continue to invest in 3G services; fixed wireless operators are continuing to invest in high speed point to point wireless broadband; and the broadcaster Sky has entered the broadband market, increasing choice for consumers.

Additional information not given on the floor of the House

Of the estimated 2.3 million premises in Ireland, approximately 1.4 million are expected to be served by these commercial next generation broadband services in the coming years at speeds comparable with those marketed across the European Union. The retail prices are set by service providers in open market conditions. While these commercial developments are welcome, the acceleration of investment is largely contained to cities and towns. On 25 April I signalled the Government's commitment to a major telecommunications network build-out to rural Ireland, with fibre as the foundation of its investment under the national broadband plan. This commitment is a clear expression of the Government's determination to address the connectivity challenge in rural Ireland in a meaningful and sustainable way.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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There are two issues, one of which is the cost of broadband provision in Ireland as compared to in other EU countries. Various studies and research show that the cost in Ireland is among the highest. In some instances, the cost in Ireland is four or five times higher than in some other countries in the European Union. I ask the Minister to look at this. In the past two years or so we have had many debates across the floor on broadband provision, particularly in remote rural areas. Residents in parts of County Meath which are living only 15 or 16 miles from O'Connell Street still cannot access broadband and all of the plans proposed do not seem to address that issue. Businesses across the country are looking at the cost of broadband. When everything comes down to the efficiencies that can be generated, why is the cost of broadband in Ireland so high as compared to in other EU countries?

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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The Deputy is correct in that there are several reports. The report on which the Department and I rely is ComReg's quarterly data review. I must make a decision on the barometer of measurement. According to ComReg, in December 2013 Ireland was 15th lowest of 26 countries in the case of fixed-lined business broadband services, six places below or 16.5% cheaper than the average; 13th lowest of 20 countries in the case of prepay residential mobile broadband services, one place above the average; and 15th lowest of 21 countries in the case of post-pay residential mobile broadband services, two places above the average. Ireland is ninth lowest of 21 countries in the case of post-pay business broadband services, four places below or 18.7% cheaper than the average; and 21st lowest of 27 countries in the case of fixed-line household broadband services, five places above the EU average.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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It all depends on which report one accepts as being accurate. The other point relates to broadband speeds. Company representatives state they are not receiving broadband services, particularly mobile broadband services, at the speeds for which they signed up when they entered contracts with some companies. They are not getting what it "says on the tin". There is a major issue that needs to be addressed.

The issue of broadband came up everywhere when candidates were out canvassing for the recent elections. We need to tackle it head-on with a sense of urgency because broadband provision is fundamental to the economy. The Minister might also address the issue of speeds.

10:40 am

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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As the Deputy stated, in some cases the speeds promised are not delivered, for which there are technical and complex explanations. This is one of the reasons we have gone for a fibre solution. The roll-out of a network the foundation of which is a fibre solution means that the matter raised by the Deputy will not be an issue in the future. Fibre has the capacity to meet any reasonable demand made on it and is the Rolls-Royce of solutions. The industry is investing. When I speak about the roll-out of the fibre solution, I am speaking about the State-led intervention. Similar considerations apply to the eircom eFibre project. The industry is investing approximately €2 billion. Eircom is increasing its figures from 1 million to 1.4 million homes and from 70 Mb to 100 Mb. UPC speeds are increasing from 100 Mb to 200 Mb. As the Deputy knows, the ESB has done business with Vodafone and this joint venture is being constructed. It is a fibre solution using the electricity infrastructure. These are radical measures which will address the point raised by the Deputy.