Seán Crowe (Dublin South West, Sinn Fein)
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Question 72: To ask the Minister for Communications, Marine and Natural Resources his views on whether it is fair that taxpayers have to foot the bill of addressing deficient broadband infrastructure while the private sector, and Eircom in particular, will then come in and reap the profits. [26501/06]

Arthur Morgan (Louth, Sinn Fein)
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Question 110: To ask the Minister for Communications, Marine and Natural Resources if, in view of the fact that the reason for the slow roll-out of broadband services in this state has been due to the lack of investment by the private sector in the necessary infrastructure to deliver broadband to all areas, he will admit that privatisation in this sector has been a disaster; and if he will encourage companies such as Eircom to address the deficiencies in broadband infrastructure. [26503/06]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 72 and 110 together.

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 recognises however, that a principal reason for the slow roll-out of competitive, affordable broadband services in Ireland, principally in the regions, has been a lack of investment by the private sector in the necessary infrastructure.

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 One of this Programme has delivered fibre optic networks to 27 towns and cities throughout the country.

This Programme has been extended to over 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.

It is important to note that the MANs will realise a return on investment over a longer period than the private sector is prepared to risk. The creation of such open-access infrastructure is seen as an essential enabler of development, and is already offering opportunities for businesses both large and small to become and remain competitive through ICT.

The 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, over 150 projects have been approved for funding under this Programme.

The privatisation of Eircom was driven by the liberalisation of the market and was part of a broader trend that was reflected across the EU. It was a good sale for Eircom shareholders — the taxpayers of Ireland. It is worth pointing out that Ireland in 2006 has more choice in terms of telecoms services and providers. The basic price basket for telephony is now much cheaper than before Eircom was privatised.

The result of Government investment in the Regional Broadband Programme has meant increased activity and competition in the broadband market and greater choice for the consumer.