Written answers

Thursday, 19 October 2006

Department of Communications, Energy and Natural Resources

Telecommunications Services

5:00 pm

Photo of Michael D HigginsMichael D Higgins (Galway West, Labour)
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Question 10: To ask the Minister for Communications, Marine and Natural Resources the amount of the MANs network currently lit; the level of uptake on the MANs; the way he intends to invigilate the operator if the present multi-million euro level of losses continues; if he is still investigating the possibility of establishing a new semi-State operated telecommunications company under the name Project Dingle; and if he will make a statement on the matter. [33420/06]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 80: To ask the Minister for Communications, Marine and Natural Resources the number of broadband connections achieved to date under the MANs schemes; and if he will make a statement on the matter. [33544/06]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 10 and 80 together.

In June 2004 further to a competitive, public tender process, E-Net was awarded the contract to manage, maintain, market and operate the Metropolitan Area Networks (MANs) for a period of 15 years. E-Net is an independent company based in Limerick established solely for this purpose.

Under Phase 1 of the MANs programme, twenty-seven networks were completed and handed over to E-Net. E-Net have concluded contracts with various Service Providers and activity has begun on the networks. The details of these contracts are commercially sensitive and are a matter for E-Net. The number of broadband connections provided by Service Providers to their customers is commercially sensitive and not available to E-Net or the Department. Twenty-five of the twenty-seven networks have been lit to date. Uptake on the MANs is increasing on a monthly basis.

E-Net's contractual obligations for the management, operation, marketing and maintenance of the MANs are set out in the Concession Agreement between my Department and E-Net. Controls exist within the Concession Agreement to closely monitor E-Net's performance. E-Net formally reports to my Department on a quarterly basis and is obliged to file various documents throughout the contract term dealing with its activities. E-Net also publishes an annual set of accounts. Arrangements are in place to ensure that E-Net are fulfilling their obligations, under the Concession Agreement.

Although E-Net is still in the start up phase of operation, it is experiencing continued growth in revenues in line with its forecast. E-Net has established a working relationship with every major telecom operator in the State with the exception of the incumbent. The range and variety of wholesale services offered to operators has continued to expand.

My Department is continuously examining the regional interconnectivity issue. It is recognised there are obstacles in ensuring that customers in regional towns can gain access to quality broadband services at competitive prices. The newly constructed MANs ensure that there is now significant capacity available in the urban areas of these towns. However, there is still limited national competition on backhaul, i.e. the onward transportation of this traffic to other destinations and to the international internet exchanges in Dublin. I am exploring options to facilitate competition amongst the various regional backhaul providers.

In relation to Project Dingle a team of advisors was engaged in April 2005 to examine the potential for enhancing and augmenting existing state owned infrastructure. 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.

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