Written answers

Thursday, 6 April 2006

Department of Communications, Energy and Natural Resources

Telecommunications Services

5:00 am

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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Question 55: To ask the Minister for Communications, Marine and Natural Resources the plans to form a new semi-State telecommunications company reportedly entitled Project Dingle; the way in which he envisages a new public entity operating with the privately managed metropolitan area networks; the proposed timetable for such a development; and if he will make a statement on the matter. [13609/06]

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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The Department is examining the regional interconnectivity issue at present. It is recognised there are obstacles in ensuring that customers in regional towns can gain access to quality broadband services at competitive prices. Although the newly constructed metropolitan area networks, MANs, ensure that there is significant capacity available at extremely competitive rates in the urban areas of these towns, where this was previously not the case, there is still limited national competition on backhaul, that is, the onward transportation of this traffic to other destinations and on to the international Internet exchanges in Dublin, to enable businesses in regional locations attain an affordable quality of service. The Minister is determined to address this imbalance in regional cost and infrastructure deficiencies by exploring our options, including those in respect of State-owned companies-agencies that currently own telecommunications infrastructure. Our aim is to improve cost and promote choice and competition among the various regional backhaul providers.

A team of advisers was engaged in April 2005 to examine the various issues and they submitted a feasibility report last December setting out the available options. The team reported that, while technically feasible, there would be considerable financial, legal and management challenges in harnessing and enhancing the existing state owned infrastructures. The Minister is actively considering the report's conclusions in the context of developing strategies to improve backhaul connectivity to the regions.

It is clear to the Minister from discussions with people involved in the MANs and group broadband scheme, GBS, initiatives that backhaul pricing and availability is a critical issue for regional Ireland. Backhaul charges are making affordable high-capacity broadband in the regions difficult to achieve. This undermines the prospects for employment growth in regional and rural Ireland. If the market does not provide affordable national backhaul, this is a strategic weakness for Ireland, which we ignore at our peril. The Government will have no alternative but to examine all available options to resolve this difficulty.

The Government is addressing the 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 in the coming months. 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.

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, 27 networks have 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.

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