Pat Breen (Clare, Fine Gael)
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Question 591: To ask the Minister for Communications, Marine and Natural Resources the action he proposes to take on national broadband strategy following the most recent survey by EUROSTAT which finds Ireland ranks fifth lowest out of 25 European states for broadband penetration; and if he will make a statement on the matter. [1661/06]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 594: To ask the Minister for Communications, Marine and Natural Resources the reason Ireland is second from the bottom of an EU league table in respect of the rollout of broadband services here; and if he will make a statement on the matter. [1747/06]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 591 and 594 together.

According to recent EU Internet statistics there are over two million Internet users in Ireland. This represents user growth of 163% in the last four years and a market penetration per population of 51.2%, which compares favourably with the EU average of 48.9%.

However, the relatively low ranking of Ireland against other European countries in various broadband league tables reflects the late launch of competitive, affordable broadband by private broadband service providers in Ireland and the slow take up by consumers.

The Government is addressing the infrastructure deficit in the regions by building high-speed, open-access 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 delivered fibre optic networks to 27 towns and cities throughout the country, which were built on time and under budget.

This programme has been extended to a further 90 towns in various locations nationwide. Design and procurement has already commenced in several regions and construction is due to start early this year. It is expected that these MANs will be completed 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.

A joint industry-Government fund of €18 million has been established for the broadband for schools programme and will have provided every school in the country with broadband by the end of this year.

In late 2004, the Government set a target of 400,000 broadband subscribers to be achieved by the end of 2006. Since that target was set, the number of broadband subscribers has more than doubled to reach 208,000 by the end of September 2005, an increase of over 19% in comparison to the previous quarter, according to ComReg's latest quarterly report on key trend in the electronic communications sector. All the indicators are that this growth in subscriber numbers will continue to grow across a range of broadband technologies. The Government's broadband target is to be within the top half of EU countries by the end of 2007.

In 2004 there were over 80 Internet service providers, today there are over 156 companies listed by ComReg, with at least 45 different broadband offerings across a variety of technologies, including DSL, fibre, cable, leased lines and satellite technology. Wireless broadband technology is improving rapidly, and the lowering of equipment prices has made this technology much more attractive of late. The use of fixed wireless local access is increasing, especially in rural areas that cannot obtain ADSL connectivity, and the development of Wi-Max offers considerable potential in the future.

In essence, there are broadband technologies that can deliver broadband to virtually any broadband customer in Ireland right now. The rate of uptake is dependent on access by the service providers to suitable infrastructure.