Martin Cullen (Waterford, Fianna Fail)

I speak on behalf of the Minister for Communications, Energy and Natural Resources, who is attending an official function. I am pleased to update the House on the availability of broadband services, including in Dunmore East and Tramore, in which I have a particular interest, and Government initiatives to assist the telecommunications sector to deliver next generation broadband.

The provision of broadband services is a major priority for the Government. In this context, the primary role of the Government is to formulate regulatory and infrastructure policies to facilitate the provision of high quality telecommunications services by competing private sector service providers. The broadband market is fully liberalised and regulated, where appropriate, by ComReg, the independent Commission for Communications Regulation. However, where markets fail in the telecommunications and broadband sectors, Government must act. Government infrastructure policy addresses market failure through investment in international connectivity and regional backhaul, the construction of the open access metropolitan area networks, part funding rural broadband access networks under the group broadband scheme and upcoming national broadband scheme.

The MANs programme involves the construction of high speed, open access metropolitan area networks in towns and cities nationwide in partnership with local and regional authorities. MANs are State owned, open access telecommunications networks in towns and cities which are offered to telecommunication service providers on a wholesale basis to allow them to provide services without the need to build their own networks.

Phase one of the MANs programme saw the construction of duct and fibre networks in 27 cities and towns. A total of 94 towns were selected for investment under phase two. Open access masts or high sites were proposed for 22 of the phase two towns, including Tramore and Dunmore East, to attract wireless operators. There have been a number of developments since the decision to proceed with phase two was made. All towns selected for investment under the MANs programme now have at least one broadband provider. Tramore and Dunmore East have broadband providers competing over multiple technology platforms — DSL, wireless, mobile and satellite.

In addition, the Department of Communications, Energy and Natural Resources commenced a value for money and policy review of phase one of the MANs programme last year. This report is almost complete and will be published in the coming weeks. The Department has also prepared a draft policy paper on next generation broadband networks, which will review current communications infrastructure policy and provide options on the optimum future role for Government in facilitating the roll out of high speed broadband networks.

An international advisory forum made up of international experts in the electronic communications sector met last week to critique the draft policy paper. The paper will be soon published for public consultation.

In these circumstances, the Minister has decided that it would be prudent to delay the signing of contracts for the construction of new networks, including those at Dunmore East and Tramore, until he has had an opportunity to consider and assess the implications of the value for money report and the outcome of the consultation on the next generation broadband policy paper.

I understand major advances in technology have taken place recently in some of these areas. I am aware from general discussion that the Government is trying to identify the best approach to achieving its objectives in this area. I want to ensure that Tramore and Dunmore East are included in the next stage of broadband development. The report to be published shortly will inform the debate. In the meantime, the MANs under construction in 66 towns are proceeding as planned.

The State has undertaken initiatives to address the gaps in broadband coverage where the market has clearly failed. Direct Exchequer funding has already been provided under the National Development Plan 2000-2006 for the provision of backbone infrastructure and to upgrade local access infrastructure. Under the National Development Plan 2007-2013 we plan to invest a total of €435 million of Exchequer funding in communication and broadband infrastructure. The money is available; it is a question of maximising its use.

In 2007, some €35.68 million was spent by the Exchequer on broadband projects and provision is made for some €53.63 million this year. This investment is primarily directed at meeting commitments under the metropolitan area networks programme and the national broadband scheme. Later this year the NBS will begin providing broadband services to those areas of the country currently not served by broadband providers.

The Government will take decisions regarding the allocation of the uncommitted portion of the NDP allocation in light of the policy priorities arising from the next generation broadband policy framework. The objective will be to maximise the impact of the allocation available and to ensure the on-time delivery of next generation broadband by competing service providers to Irish homes and businesses.

I assure the Senator and the Acting Chairman that I will take particular notice, as I do of all matters to do with our own constituency, when these decisions are being taken.