John Deasy (Waterford, Fine Gael)
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Question 378: To ask the Minister for Communications, Marine and Natural Resources if his Department has estimated the cost to the State of implementing the proposal by a company (details supplied) to provide a nationwide fibre-optic cabling network that would serve every business and home here; his views on whether the cost to the Government of the proposal would be €2 billion; his plans to implement this proposal; and if he will make a statement on the matter. [10703/06]

Noel Dempsey (Meath, Fianna Fail)
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To date I have not seen any estimates or breakdown of the costs associated with this proposal. 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 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. Phase 1 of this programme has delivered fibre-optic networks to 27 towns and cities throughout the country.

This programme has been extended to more than 90 towns in various locations nationwide. It is expected that these MANs will be completed during 2006 and 2007. These networks 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 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, more than 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 throughout the country. The construction-installation phase is now under way and the project is on target for completion within the set timeframe.

In 2004 there were more than 80 Internet service providers; today there are more than 156 companies with at least 45 different broadband offerings. 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.