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Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: Yes, but we have witnessed a major price increase. Why has that occurred? Did the bidder think that Eir would not have the capacity on its backhaul network?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: One part of the scheme that we hope takes off, please God, is a great increase in the Internet of things. We hope to see every dairy farmer sending in his milk figures in via Internet and every child using it to do his or her homework. There would, however, need to be a check that the network has a 25-year capability to cope with the increase in the volume of data that we want to encourage....

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: That is more the case now, when there has been a necessity to create its own backhaul, effectively.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: I apologise for taking so long but if Mr. Kidney could provide that, I would really appreciate it. What is the use of the metropolitan area networks, MANs, in this tree?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: I think there are around 200 MANs. I cannot remember the final number.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: Are they all being used?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: In terms of the cost increases, the witnesses said that when they looked at the atlas of ducting and overhead wires, it led to a cost increase. I presume that means less ducting and more overhead lines. Was that the reason?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: Was that because of the quality of the aerial connection?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: The amount of aerial had to be increased. Is that correct?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: The intervention areas did not have as much ducting as expected. Is that correct?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: Is ducting more expensive?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: Dr. Yardley said that the third reason for the increase in the subsidy was not related to the physical construction costs of the network. What was it related to? He said there were three reasons. One was having to build through the 300,000 area and the second was the mix-----

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: I have talked to industry people with similar experience in other jurisdictions. They have told me that this situation is unusual in that we are subsidising the construction costs. In fact, we are paying for the construction. We are also subsidising the revenue risk. We are covering both in our subsidy. What I hear from others is that it would be standard or normal enough for the State...

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: Why is the construction risk residing with the Government? Why are the costs being borne by the State? It would be more typical with a project of this type for the State to cover the revenue risk and let the developer cover the cost of construction and take some of the risk. The developer is taking no risk here. The developer is covered on the construction side and on the revenue side.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: The witnesses have just said that the subsidy went up because the revenue fell.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: This is complex and we have to dig to get to the bottom of it, as best we can, with blacked out documents. The witnesses said that the cost increases were material to the subsidy increase but that they were only a small factor or part-----

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: The other issue was not just the loss of the 300,000. There were other subsidy factors on the revenue side, as well as the loss of the 300,000. We need to find out what those factors are.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: This is difficult and we are only learning about it. There are 88 metropolitan area networks and a MAN is equivalent to an exchange. Is that correct?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: How many other exchanges will we be using as POPs in the national broadband scheme?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Eamon Ryan: What is it roughly?

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