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Public Accounts Committee: Enet (14 Feb 2019)

Mr. Peter McCarthy: I thank the committee for the invitation to attend this session. I am the group CEO of Enet. I am accompanied today by Mr. David Eyre, chief commercial officer, and Ms Claire Murphy, general counsel and company secretary. As we have mentioned in our briefing materials, our entire leadership team is relatively new to Enet but we are here today to support the...

Public Accounts Committee: Enet (14 Feb 2019)

Mr. Peter McCarthy: No. If National Broadband Ireland, NBI, which is the bidding consortium, or anybody, wins this contract then Enet is potentially a subcontractor. At the moment, Enet will be a subcontractor if the national broadband plan, as it currently is, was to go into the preferred bidder stage and move forward. Enet would be bringing the benefit of the MANs and all of that...

Public Accounts Committee: Enet (14 Feb 2019)

Catherine Murphy: For the purpose of accuracy, the understanding was that Enet was going to lead the bid all along, and it has changed quite substantially. In actual fact, a number of subcontractors had been named as part of the consortium, which would be the case now, who would be engaged in the building out. The bid has changed very substantially, which was mentioned by others here today. The leadership...

Public Accounts Committee: Enet (14 Feb 2019)

...I am glad to have the opportunity to clarify that. Paragraph 75 (e) of the State aid approval decision of the European Commission addressed to Ireland in respect of the State aid to be provided to Enet under the concession agreements for the Metropolitan Area Networks, phases two and three, states that the State retains ownership of the infrastructure and attributes its management to an...

Public Accounts Committee: Enet (14 Feb 2019)

Mr. Peter McCarthy: No. I will explain it now. ETNL was separated from Enet in 2015. They are two distinct buckets on the Enet side of the house, namely, the MANs business which is Enet, and the wholesale business which is ETNL. There is a retail business which sits over to one side, which is AirSpeed Telecom. The MANs were built by the State. They were merely rings of fibre in rural...

Public Accounts Committee: Enet (14 Feb 2019)

Mr. Peter McCarthy: This is because the chairman was in control of Enet at the time. He was the face of the business and he chose to call it the Enet consortium.

Public Accounts Committee: Enet (14 Feb 2019)

Catherine Murphy: I seek a clarification because we probably will need to deal with this when we have the Department back in. Who, in the Department, regulates Enet? Does Enet specifically deal with somebody in the Department?

Public Accounts Committee: Enet (14 Feb 2019)

Kate O'Connell: Questions were being asked about the existing infrastructure and Bord Gáis networks. Mr. McCarthy referred to Enet having use of that. Will he elaborate on that? It was not discussed earlier and from what I heard, I had the impression that the networks were almost redundant. He indicated that Enet has capacity in that regard.

Public Accounts Committee: Enet (14 Feb 2019)

Mr. Peter McCarthy: And still is. Enet's envisaged role is that of key subcontractor providing services such as capacity via the MANs, co-location via MAN-enabled co-location sites and the Enet proprietary network, services in backhaul capacity, the provision of wireless access and network operations management. In September 2018, the final PQQ was lodged by Granahan McCourt, the lead...

Public Accounts Committee: Enet (14 Feb 2019)

Catherine Murphy: Yes. Before the contracts were extended, there were criticisms from companies which were significant purchasers from Enet. That has been picked up and I hope it will be remedied now and in the foreseeable future. Mr. McCarthy stated that there was a satisfactory relationship between Enet and its customers. However, the customers were saying there were serious problems. Does he accept that?

Public Accounts Committee: Enet (14 Feb 2019)

...other. We have to look at things in that context and we cannot completely put that to one side. Maybe if I address the next section of the Deputy's question, which was on inter-company pricing. Enet is related to a sister company, Enet Telecommunications Networks Limited, ETNL.

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: That is fine. The point made today by Eir was that under the European procurement rules an operator could not provide the service supplied by the Enet. It had to be independent. It was stated that Enet met that condition at the time. Now that it has a sister company in the same business, however, Eir questioned whether that condition was still being met. Does Mr. McCarthy understand the...

Public Accounts Committee: Enet (14 Feb 2019)

Catherine Murphy: ..., for example, between different components and whether there were discounts. We have heard from British Telecom, BT, this morning and we can only test this with companies that are purchasing from Enet whether the contract's terms were fully implemented. BT will revert to the committee with a note on the aspects it says were not fully implemented. The purpose of teasing out the...

Public Accounts Committee: Enet (14 Feb 2019)

Mr. Peter McCarthy: As a result of the operation of the State-owned metropolitan area networks, Enet has a unique perspective on what State intervention in the telecoms market can do to create competition, remove the barriers to foreign direct investment and reduce the cost of bandwidth. Enet, therefore, has always been supportive of the national broadband plan, NBP, and the Government's...

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: I have a further question on the broadband plan, but something was mentioned about MANs in rural areas. Well, Enet calls them "rural areas", but it is not out the country. It is in towns, by and large the provincial ones. For people who want broadband outside of the MANs and a provider is supplying broadband in a rural area close to a town on the MANs, it has been stated that there is an...

Public Accounts Committee: Enet (14 Feb 2019)

Mr. Peter McCarthy: Just to give a bit more information. Analysys Mason is a London-based consultancy. The DCCAE commissioned them to review whether Enet is operating the MANs in compliance with its obligations under the code of practice in the MANs concession agreements to provide open access to the MANs on an equality of treatment, non-discriminatory and transparent basis. This report...

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: I can guess what the "middle mile" is. We also know about the last bit and where Enet is with that, but it would be helpful if Mr. McCarthy would send us the explanation of the "middle mile". The last topic I want to raise with Mr. McCarthy is the national broadband plan. This might not take very long. The national broadband plan was a principal part of Mr. McCarthy's opening statement...

Public Accounts Committee: Enet (14 Feb 2019)

Mr. Peter McCarthy: That is no problem. The first decade of the MANs programme saw significant investment and positive market impact from Enet and the company saw an opportunity to invest further in the asset to ensure that it remained at the heart of a rapidly changing telecoms landscape and to continue to deliver policy benefits for the State. When Enet approached the Department of...

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: That is helpful. At prequalification, the financial side of the consortium is coming through Granahan McCourt and Enet, as the key subcontractor, has a proven track record of being able to deliver as an operator in the system with operational knowledge of this type of project. Mr. McCarthy must be the most modest person ever to have appeared at the Committee of Public Accounts because...

Public Accounts Committee: Enet (14 Feb 2019)

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