Seanad debates

Tuesday, 3 February 2015

Commencement Matters

Broadband Service Provision

3:10 pm

Photo of Paddy BurkePaddy Burke (Fine Gael)
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I welcome the Minister for Communications Energy and Natural Resources, Deputy White, to the House.

Photo of Tom ShehanTom Shehan (Fine Gael)
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I welcome the Minister to the House. I raise this matter to seek a date for the commencement of the provision of fibre-optic broadband infrastructure in County Kerry, specifically in Dingle. Public representatives have been heard complaining all the time that the IDA is not inviting potential foreign direct investors to Kerry or having site meetings there to attract foreign direct investment. The reason, which I can understand, is that we do not have the broadband services necessary for them to invest in an area such as County Kerry. There is no question about that. Over recent years, perhaps two or three visits have been organised by the IDA.

I was in Dingle recently and the case for broadband provision was made to me very passionately. Following the signing of the memorandum of understanding between Sacred Heart University in the United States, University College Cork, Cork Institute of Technology and the Institute of Technology Tralee on the setting up of a faculty of Sacred Heart University in Dingle, the latter has purchased the Christian Brothers school in the town and intends to develop it with a view to running semesters in marine biology or marine science. The authorities applied for broadband services. Private suppliers are wiping out all the urban areas, leaving the State to take up the slack and provide broadband to the remaining rural areas. In effect, it is similar to the approach to rural electrification 50 or 60 years ago. It is ironic that the Black Valley in County Kerry was the last place in Ireland to get electricity. I would hate to believe it would be the last to get broadband.

Let me return to my query on the provision of broadband to the university faculty that is to be run from Dingle.

It was asked by a private provider for €36,000 up front and €16,000 per annum rental after that. The provision of broadband is one matter, but provision of affordable broadband is important as well. While contracts may be signed with private providers, the more subscribers who buy into it and take up broadband, the cheaper it will be.

Following inquiries, I also understand that the Commission for Communications Regulation, CER, cannot determine the retail price of broadband. It can only decide the wholesale price of the provision of broadband. That is what I stated on local radio recently in trying to enthuse consumers and get them going - the more consumers sign up for this service, the cheaper it will be for them. For this institution to be set up with broadband, however, it would cost €36,000 up front and €16,000 per annum rental. That is not affordable.

There is another aspect that must be highlighted in this regard. There was a technological company in the Corca Dhuibhne Gaeltacht that could not get broadband and moved to Baile Bhúirne. That technology company - a type of company that is badly needed in such rural areas - moved to Baile Bhúirne, another Gaeltacht area, to set up, extend and develop its business because we did not have broadband.

3:15 pm

Photo of Alex WhiteAlex White (Dublin South, Labour)
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The Government's national broadband plan, NBP, will ensure that high-speed broadband is available to all citizens and businesses in Ireland through a combination of commercial investment and State intervention.

We have created the conditions in which the commercial sector is now investing €2.5 billion. This accelerated pace of investment is hugely encouraging. It is delivering high-speed broadband to homes and businesses where low speeds would have been the norm only two years ago.

This investment is a huge vote of confidence in our recovering economy. However, despite this substantial progress, the Government is very much aware that large geographical areas of the country - rural areas with widely dispersed populations - will not get reliable high-speed broadband from the private sector. Therefore, the Government has made a commitment to ensure that every home, school and business will have access to high­speed services regardless of where it is located. The national broadband plan will see a State-led intervention provide that access in areas where the commercial sector will not.

In November last, I initiated a public consultation on a national high-speed coverage map, which was produced in line with EU requirements. At the same time, an information pack was sent to every Senator and TD, together with an invitation to a presentation by my Department's NBP team, which took place in the AV room.

The map, which provides detailed information on more than 50,000 townlands in every county, is available at www.broadband.gov.ie. It shows blue areas, where commercial operators will supply high-speed broadband, and amber areas, which will benefit from the State intervention.

The map shows that Dingle in County Kerry will have access to next-generation broadband through commercial investment. Given that the provision of high-speed broadband services to Dingle is to be delivered through private commercial investment, I am not in a position to comment on the precise timing of this programme. However, I understand from recent contacts with the company concerned that it hopes to deliver this during 2015.

I understand that this particular investment will also require significant improvement to the backhaul network between Dingle and Tralee. Given the diverse range of customers that this will benefit and the town's vibrant tourist sector, and all of the cultural pursuits and business requirements to which the Senator correctly referred, I am sure this investment will be very welcome to local residents and businesses.

Photo of Tom ShehanTom Shehan (Fine Gael)
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I thank the Minister. He has really grasped this area of the provision of broadband.

It is great that we will have broadband in the first half of 2015, I believe, in Dingle. The Government's roll-out plan for the other rural areas will take anything up to two years. Can anything be done to expedite that? The rest of the country outside of urban areas will wait an additional two years for the provision of broadband.

I genuinely commend the Minister, but this broadband must be affordable.

3:20 pm

Photo of Alex WhiteAlex White (Dublin South, Labour)
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I understand the Senator's views and agree with them very much. I also agree with his general points on what is often known as the digital divide. This is an equity issue as much as anything else; it is a matter relevant to business, education, families and the efficient administration of public services. In Dingle - as in other locations around the country - broadband is an important and valuable asset for cultural activity and pursuits linked to tourism.

I have notified Members of the House of the timelines and I will keep them updated. By the middle of this year we will have the full intervention strategy for the State scheme. We will apply for state aid approval in the European Union in the summer and I hope it will go to tender by December 2015 in order to get a bidder or bidders in place so contractor contracts can be offered next year. They will then have to build the infrastructure, which is equivalent to 100,000 km of road. We know how long it takes for roads and other big infrastructure projects to be completed. I am anxious that this be expedited and done as quickly as possible.

Sitting suspended at 3.25 p.m. and resumed at 3.30 p.m.