Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 160: To ask the Minister for Communications, Marine and Natural Resources the companies, groups or interests with which he has had discussions in the context of the provision of accelerated telecommunications services; the nature, scale and extent of such discussions; if existing competing service providers have been involved; if he anticipates new entrants to the market with a view to improving Ireland's international position with particular reference to the European league in regard to the provision of broadband and similar services keeping in mind that targets set to date have not been achieved and Ireland's ever deteriorating position in this regard; and if he will make a statement on the matter. [2196/06]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

My Department regularly reviews all aspects of the broadband market and holds discussions with broadband interest groups, both public and private, to listen to their concerns. These discussions are ongoing and typically cover a range of issues relevant to broadband supply and demand nationally including the operation of the metropolitan area networks, MANs.

The Government is addressing the local infrastructure deficit by building high-speed open access 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 in 2006. It is expected that these MANs will be completed during 2006 and 2007. These metropolitan area networks will allow the private sector to offer world-class broadband services at competitive costs.

In June 2004, the contract for management of the Government and local authority regional metropolitan broadband networks was awarded to E-Net, a company based in Limerick. The term of the contract is 15 years. E-Net operates as a wholesaler of access to the MANs and offers a full suite of products including ducting, sub-ducting, dark fibre, high level managed capacity, co-location facilities and relevant auxiliary services. Under phase one, 23 networks have now been completed and handed over to E-Net. Activity has now begun on the networks with several customer contracts being signed by E-Net, including arrangements for backhaul and 18 of the 23 MANs have been lit to date.

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, with each application being assessed by the Department's technical advisers. 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 beginning of 2006. This is a crucial strand in the strategy of integrating ICT into teaching and learning, and my Department's wider vision of promoting the use of broadband technologies in local communities around the country. The construction-installation phase is now under way, and the project is on target for completion within the set timeframe.

The Government believes broadband connectivity forms a significant part of ICT development. High-speed, resilient, low cost broadband is an essential feedstock for that sector. It has, and will continue to play, a vital role in moving Ireland to the forefront of knowledge-based economies in the world.

The ranking of Ireland against other European countries reflects the late launch of competitive, affordable broadband by private broadband service providers in Ireland and a slow take-up by consumers. However, Ireland's rating is improving. According to recent EU Internet statistics there are more than 2 million Internet users in Ireland. This represents user growth of 163% in the past four years and a market penetration per population of 51.2%, which compares favourably with the EU average of 48.9%. Irish broadband prices are now below the EU average and this should have the effect of further stimulating demand.

In 2004 there were more than 80 Internet service providers, today there are more than 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.

The latest quarterly data report from ComReg on broadband delivery rates indicates that broadband subscriptions have grown by 19% as of September 2005 and stand at 208,000. DSL remains the largest platform for broadband access, representing 78% of subscriptions and a growth rate of 16% in the last quarter. The proportion of broadband subscriptions delivered over access platforms other than DSL has increased in the past 12 months. The estimated end-December 2005 figure for broadband subscribers is 250,000 according to the regulator.