Written answers

Wednesday, 25 January 2006

Department of Communications, Energy and Natural Resources

Mobile Telephony

8:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 572: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the fact that broadband, mobile telephony, electronic transmissions and call service charges here are the most expensive in Europe and that the customer in many cases enjoys the worst service at the highest cost and the fact that his targets for broadband availability here have not been met; his proposals to direct the regulator with a view to achieving dramatic changes in this area with particular reference to the availability of provision of broadband facilities; the achievement of targets in early date; if there is an improvement in the quality of mobile telephone services to achieve an improvement in coverage, call breakdown and costs; his views on whether there is a need to act on this issue in early date in an effort to catch up with competitors throughout the world; and if he will make a statement on the matter. [2524/06]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I have no function in the regulating of pricing for services or quality of service in the fixed or mobile telecommunications market. The regulation of telecommunications operators, including regulating of pricing and services is the responsibility of the Commission for Communications Regulation, ComReg, in accordance with the requirements of the Communications Regulation Act 2002 and regulations which transpose the EU Regulatory Framework for Electronic Communications.

The provision of telecommunications services, including broadband, is a matter in the first instance for the private sector companies operating in a fully liberalised market regulated by the independent Commission for Communications Regulation, ComReg. The regulation of financial service costs in this State is a matter for the Irish Financial Services Regulator Authority.

As Minister for Communications, Marine and Natural Resources, I have responsibility for overall telecoms policy. My main goal in this policy is to create conditions for sustainable growth and competition that will benefit the economic and social development of Ireland and facilitate competitive services.

It is my belief that improving the market conditions to enhance competition is the best way to drive down mobile phone charges to the end user. The more competitive telecoms services that are on offer, the better in the long run for consumers, the sector and the economy.

ComReg has, as one of its key objectives, under the Communications Regulation Act 2002, the promotion of competition in the exercise of its functions. Competition in the fixed and mobile markets will drive down prices for consumers. I have no information to say that Irish mobile charges are generally the highest in Europe. ComReg's quarterly key data for the Irish communications market for Q3 2005 indicate that the average revenue per user, ARPU, for Ireland is €47 per month. Switzerland has the highest at €48 per month.

I propose to introduce a Bill in the Dáil later this year, the Communications (Miscellaneous Provisions) Bill, which will include provisions for the granting of greater powers to ComReg to investigate overcharging and ensure greater compliance of regulatory obligations by operators by giving improved enforcement powers to ComReg. This Bill is the subject of a public consultation process at present.

The Government is addressing the broadband infrastructure deficit in the regions by building high-speed, open access, carrier neutral metropolitan area networks, MANs, in 120 towns and cities nationwide, on a phased basis in association with the local and regional authorities. Phase one of this programme has so far delivered fibre optic networks to 27 towns and cities throughout the country. This programme has been extended to a further 90 towns in various locations nationwide and these MANs are due for completion during 2006 and 2007. These MANs will allow the private sector to offer world-class broadband services at competitive costs.

My Department also offers funding assistance for smaller towns and rural communities to become self-sufficient in broadband through the county and group broadband scheme. The scheme is technology-neutral, allowing the community to select the most suitable broadband delivery platform for the area. To date, over 150 projects have been approved for funding under this programme.

A joint industry-Government fund of €18 million has been established for the broadband for schools programme, which will provide every school in the country with broadband by the first half of 2006. The construction-installation phase is now under way, and the project is on target for completion within the set timeframe.

We are the lowest cost country in the OECD for international connectivity; our regional broadband pricing is now on a par with the best in Europe, and the price of basic broadband access is at the EU average. Furthermore, Ireland is now one of the cheapest locations in the world for international leased lines.

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