Michael D Higgins (Galway West, Labour)
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Question 113: To ask the Minister for Communications, Energy and Natural Resources his views on the critical comments made by managing directors of companies (details supplied) in relation to Ireland's broadband connectivity problems; and if he will make a statement on the matter. [35630/07]

Eamon 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 been a priority for Government.

There has been very significant progress in the broadband market. A recent report from the OECD shows that Ireland has 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. ComReg's report for quarter 3 of 2007, published yesterday, highlighted continuing strong growth in terms of broadband subscribers. There are now almost 800,000 subscribers which is an increase of 13.7% on the previous quarter. In addition 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 are still some parts of the country where the private sector will be unable to justify the commercial provision of broadband services. In order to address this issue the procurement process for a National Broadband Scheme (NBS) is currently under way. The NBS will provide broadband services to areas that are currently unserved and will ensure that all reasonable requests for broadband in unserved areas are met. The procurement process is being undertaken pursuant to the European Communities (Award of Public Authorities' Contracts) Regulations 2006 using a competitive dialogue procurement process.

The first phase of the procurement process (Pre-Qualification Questionnaire (PQQ)) is now complete, and four candidates have pre-qualified to enter the next phase of the procurement process. As my Department indicated on 2 September 2007, the four candidates are, in alphabetical order, BT Communications Ireland Ltd Consortium, eircom Ltd, Hutchinson 3G Ireland Ltd and IFA/Motorola Consortium.

The Department has invited these remaining candidates to participate in the "Competitive Dialogue" phase of the procurement process and to present their proposed solutions to meet the Department's requirements for the delivery of broadband to the unserved areas of the country. It is anticipated that a preferred bidder will be selected and appointed in June 2008.

The matter of the speed of broadband services is, in the first instance, 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 rollout of NGNs. It is important that service providers understand their customers' positions and I welcome the contributions being made by various commentators in that regard.

My Department is currently considering policy options in relation to the optimum role for Government in encouraging and facilitating the planning and rollout 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. A policy paper is being drafted in this regard. I will shortly be announcing an Advisory Forum of experts to critique the draft policy paper, following which, I will publish for consultation.