Written answers

Thursday, 15 November 2007

Department of Communications, Energy and Natural Resources

Telecommunications Services

5:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 13: To ask the Minister for Communications, Energy and Natural Resources the number of fixed line broadband subscribers excluding mobile services such as 3G; the way they compare to the European average; and if he will make a statement on the matter. [28995/07]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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There were 653,000 broadband subscribers (excluding mobile) in Ireland at end of quarter two of 2007 according to official figures from Commission for Communications Regulation ComReg. This figure comprises broadband connections through "DSL" — 472,700, "Cable" — 68,900, "Fixed Wireless" — 102,500, "Other Technologies" such as Satellite and Optical Fibre — 8,900. Additionally, there were 45,000 mobile broadband subscribers in Ireland at the end of June 2007 giving a total of 698,000 subscribers. The 698,000 figure represents a penetration rate of 15.4 subscribers per 100 of population.

Ireland's growth in broadband penetration is exceptional. Last week's report from the OECD shows that we have the strongest per capita subscriber growth in the OECD. Moreover, Ireland has narrowed the gap behind the EU average. At the end of Quarter 2 06 the EU-25 average was 14 subscribers per 100 of population and our rate was 8 subscribers. At the end of Quarter 2 07, the EU-25 Average was 18.2 subscribers per 100 of population and our rate was at 15.4. If the estimated 45,000 mobile broadband subscribers are included, then the penetration figure increases to 16.48 subscribers. It might be noted that the OECD assessment understates Ireland's competitive position as regards broadband access due to the larger size of households in Ireland.

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 14: To ask the Minister for Communications, Energy and Natural Resources the position regarding the security failure from Eircom regarding its 250,000 wi-fi customers; and if he will make a statement on the matter. [28980/07]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I am advised that Eircom have contacted all of their users who are potentially affected by this issue. I am also advised that Eircom have created a special web site www.eircom.net/wirelesssecurity and have set up a free phone number where information is available on how to address the issue. In general, security issues in relation to public communications networks provided by eircom and other service providers are matters in the first instance for the service providers who are regulated by the independent Commission for Communications Regulation (ComReg).

A function of ComReg is the investigation of complaints from consumers in relation to the supply of, and access to, electronic communications networks, electronic communications services and associated facilities. ComReg are required to take all reasonable measures which are aimed at achieving and ensuring that the integrity and security of public communications networks are maintained. My Department is working with industry to increase public awareness in the next few months, in relation to the safe use of Information Communications technology (ICT). This will take the form of an all Ireland campaign aimed at educating computer users how to mitigate security risks when using computers and the Internet.

Photo of Bernard AllenBernard Allen (Cork North Central, Fine Gael)
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Question 15: To ask the Minister for Communications, Energy and Natural Resources the plans he has to improve broadband speeds here as recent studies claim Ireland has a low European ranking with average speeds of 2.2Mbps compared to some European neighbours who have average speeds ten times that of Ireland; and if he will make a statement on the matter. [28993/07]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The provision of telecommunications services, including broadband, is primarily a matter for the private sector. Broadband service providers operate in a fully liberalised market that is regulated, where appropriate, by the independent Commission for Communications Regulation, ComReg. The role of the Government is to formulate regulatory and infrastructure policies to facilitate the provision of high quality telecommunications services by competing private sector service providers.

The widespread provision of broadband services has therefore been a priority for Government. In that regard my Department has undertaken initiatives to address the gaps in broadband coverage. These include providing grant-aid under the recently concluded Group Broadband Scheme and investment in Metropolitan Area Networks (MANs). There has been significant progress made to date in the broadband market. There were 698,000 broadband subscribers in Ireland at end of quarter two of 2007 according to official figures from ComReg. This figure represents a penetration rate of 16.48 subscribers per 100 of the population. Last week's report from the OECD shows that we have the strongest per capita subscriber growth in the OECD, with Ireland adding 6.6 subscribers per 100 inhabitants during the past year, far ahead of the OECD average of 3.65 per 100 inhabitants.

The matter of the speed of broadband services is one for the service providers. Worldwide, the telecommunications sector is focusing its investment plans on what has become known as Next Generation Networks (NGNs), which are likely to see the delivery of higher-bandwidth broadband services over fibre-optic infrastructure. I understand many of the services providers in Ireland are formulating plans for the roll out of NGNs. My Department is currently considering policy options in relation to the optimum role for Government in encouraging and facilitating the planning and roll out of next generation broadband in Ireland, including how existing Government owned infrastructure, and possible future Government investment, could help achieve national policy objectives in this area.

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Question 16: To ask the Minister for Communications, Energy and Natural Resources his views on reports from ComReg that Eircom's rate of return from services provided is higher than appropriate; the implications for the customer; the action he will take; and if he will make a statement on the matter. [28960/07]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Statutory responsibility for the regulation of electronic communication service providers, including eircom, rests with the independent regulator, the Commission for Communications Regulation (ComReg), in accordance with the requirements of the Communications Regulation Act 2002, as amended, and the Regulations, which transpose the EU Regulatory Framework for Electronic Communications. I, therefore, have no function in the matter referred to in the Question.

I understand that ComReg issued a consultation paper on the cost of capital that eircom should be allowed. This is a key input to the return eircom is allowed to earn on its fixed-line business and is known as Weighted Average Cost of Capital (WACC). Full details of the consultation are available on ComReg's website – www.comreg.ie, consultation reference 07/88.

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