Brendan Kenneally (Fianna Fail)

I will disappoint Senator O'Toole because I will not withdraw the amendment. I move amendment No. 1:

To delete all words after "Seanad Eireann" and substitute the following:

—Recognising that—

—telecommunications services, including broadband, in Ireland are provided by the electronic communications sector operating in a fully liberalised market;

—the market is regulated where necessary by the Commission for Communications Regulation (ComReg), the statutory body responsible for the regulation of the sector;

—after a late start Ireland's rate of broadband take-up is continuing to accelerate;

commends—

—the Government for its proactive interventions such as supporting the construction of metropolitan area networks in many areas and providing capital grants under the county and group broadband scheme, which is helping to bring broadband subscriber numbers to more than 400,000 by the end of 2006;

—broadband providers for responding to the challenging target for broadband connectivity set by the Minister for Communications, Marine and Natural Resources two years ago; and

—the recent announcement by the Minister for Communications, Marine and Natural Resources that he is initiating a process to deliver broadband services to those areas in Ireland where it is currently uneconomic for the sector to provide broadband connectivity.

I agree with Senators Ross and O'Toole on the importance of broadband but the current situation is not due to a lack of effort by the Government. Many of the contributions referred to the lack of availability of broadband. I disagree with Senator O'Toole's statement that broadband is not being taken up due to its unavailability. The Joint Committee on Communications, Marine and Natural Resources has examined this issue. In areas where broadband is available from more than one company, it is not being taken up. I do not know the reason for this, it may have been the initial price. As the market is relatively small it may be difficult to initiate competition. I could not lay my hands on a report I had seen from a few years ago. It dealt with the number of computers in houses in different EU countries. Ireland was at the lower end of the scale. Despite being proportionately the largest exporter of software, we do not have computers in houses. If there are no computers in houses, people will not seek broadband.

Our low position on various broadband take-up surveys is mainly a reflection of the delay in the launch of competitive broadband services in Ireland in comparison with other countries. Representatives and observers of the Irish telecommunications industry agree that Ireland has a relatively low number of broadband subscribers because the full-scale launch took place 18-24 months after the launch in other countries. The take-up time lag of two years was a result of this, as well as the late launch of competitively priced digital subscriber lines by the incumbent telecommunications operator.

Senator Ross does not know if such problems exist but investigations undertaken show that there are problems with the incumbent. Due to financial difficulties, cable television networks did not emerge as significant infrastructure competitors vis-À-vis the DSL telephone platform in Ireland. The deterioration in the share values of telecommunications companies curtailed the scope for the additional investment required to launch broadband services in Ireland. Coupled with the lack of competition between broadband service providers, such as telephone and cable television companies, the reduction in investment in the aftermath of the dotcom crash weakened the initial introduction of broadband in Ireland.

However, we have moved on and there are now more than 400,000 subscribers in this country. This figure is growing by approximately 17,000 per month. It is similar to pushing a car — it is difficult at the start but once it gets moving, it will accelerate. This is why I disagree with Senator O'Toole's request to remove a reference to acceleration in the Government amendment. Why is demand accelerating now? The schools project is one of the Government initiatives in this area. Broadband is not available in every school in the country. Schools were a target and, by and large, most schools have access to broadband. That has generated demand in the home because the children want it at home as well.

One of the most important developments, given that there is a problem in rural areas, is the group broadband scheme. This scheme, which part-funds communities who wish to develop their own broadband services, is the Government's most significant initiative to ensure broadband coverage in more dispersed rural areas. The scheme is now in its second phase. Under that phase, a total of 119 projects have been approved to date. So far, this represents an investment of €12.4 million in 445 communities covering a population of 355,000 people.

Today the most fortunate Irish consumers have the choice of receiving broadband by means of DSL from a telecommunications operator, wireless from an FWA provider or over cable from their cable television company. It is reasonable to expect that within the next 12 months half of Irish households may be able to choose between at least two of these three options. In the cases of DSL and FWA it is reasonable to assume there will continue to be competition, with multiple players offering both technologies. In the cable sector it is difficult to predict the pace of broadband roll-out beyond the plans announced by the then two main operators to enable at least 200,000 customers by 2006.

This level of inter-platform competition which is finally emerging in Ireland, somewhat later than in many other OECD countries, should have the effect of ensuring strong price competition for broadband services on an ongoing basis. It is hard to imagine carriers charging higher prices for their products in different regions of the country simply because they believe there is less competition.

I had hoped to speak about the small and medium sized enterprises sector, which needs broadband to develop business but I do not have time to do so. I commend the Government's motion. Progress is being made and the Government will continue to take every step to roll out broadband as extensively as possible throughout the country.