Eamon Gilmore (Dún Laoghaire, Labour)
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Question 153: To ask the Minister for Communications, Marine and Natural Resources if he will explain the recent decision to discontinue the group broadband scheme; the amount the Government has spent on the programme to date; the total uptake of broadband services through this scheme; what will now happen to the broadband service of any individuals or groups who accessed broadband through the group broadband scheme; if his Department has undertaken a review of the scheme to examine the reason take-up on the scheme was so low; the measures he will put in place to address the urgent needs of rural dwellers who want broadband; if the potential private service providers referred to by him as an alternative to the group broadband scheme will in effect be tendering for the contract for the 100% broadband enablement of the country; the amount of money he will allocate for this private sector based programme; and if he will make a statement on the matter. [5248/07]

Noel Dempsey (Meath, Fianna Fail)
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My decision to supersede the Group Broadband Scheme (GBS) with the new National Broadband Scheme (NBS) was based on the following factors.

Firstly, rollout of a GBS project depended on the local community taking the initiative. Without local initiative, a project could not proceed. Under the NBS, the selected Service Provider(s) will be required to meet all reasonable requests for broadband by a specified date. Additionally, the NBS will deliver a service in all areas that are currently unserved, provided the cost of meeting the request is reasonable. It would not be appropriate to implement competing schemes targeting unserved areas.

Furthermore, the uptake of the GBS was less than anticipated. Just over 7,200 subscribers out of a possible 90,000 subscribers actually availed of a GBS broadband service. The population covered by the GBS schemes is estimated to be around 400,000 people. While most of the GBS projects that were rolled out were very effective the relatively low number of subscribers did not meet expectations and a more effective scheme is now required.

Finally, if both schemes were allowed to run simultaneously each could undermine the effectiveness of the other. Simultaneous running of both schemes could also give rise to double subsidisation.

For these reasons, I decided to proceed with the NBS. Accordingly, there will not be any new call for proposals under the GBS. Grant aid amounting to €5.9 million was offered to the service providers approved under the group broadband scheme. To date the service providers have claimed almost €1.4 million in grant aid and this has been paid to them. The onus of responsibility rests with the service providers to lodge their claims for payment.

The broadband projects established with grant aid assistance under the group broadband scheme are commercial projects. The continued delivery of broadband is a day-to-day operational matter for the broadband service providers who operate in a fully liberalised telecommunications market regulated by the independent Commission for Communications Regulation (ComReg).

The group broadband scheme was essentially a demand-led scheme. I must record the great work done by local communities and the Regional Coordinators in raising the awareness of broadband and helping service providers target those areas of demand. The facilitation of broadband coverage across the entire country continues to be a key priority. I am aware that, despite Government and private investment in broadband, there are areas of the country where the private sector is unable to justify the commercial provision of broadband connectivity. Accordingly, the new National Broadband Scheme will aim to provide a broadband service to these areas. This Scheme will, when it is fully rolled out, ensure that all reasonable requests for broadband from houses and premises in rural areas are met.

A Steering Group comprising officials from my Department and ComReg is currently considering all elements of the proposed scheme and work on the design of an appropriate tender will commence in the coming weeks. This scheme will be confined to areas of the country that are not yet served by any broadband service provider, currently thought to be 10-15% of the population.