Written answers

Wednesday, 23 April 2008

Department of Communications, Energy and Natural Resources

Telecommunications Services

9:00 pm

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 84: To ask the Minister for Communications, Energy and Natural Resources his preference for the functional or structural separation of Eircom; the advice he has received on this matter; if regulatory changes have been considered or agreed to facilitate such separation; and if he will make a statement on the matter. [14647/08]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I have no specific role in relation to any form of restructuring of Eircom. Eircom is a private company and is entitled to implement the corporate structure that best meets its needs provided that appropriate engagement takes place with the Commission for Communications Regulation (ComReg), which is independent in the exercise of its functions, on any regulatory issues that might arise in a separated company. I understand ComReg has engaged consultants to assist in the review of Eircom's proposals for structural separation and this work is already under way. However, as the roll out of high quality, competitive broadband infrastructure is a key priority for Government and as Eircom operates an extensive network in this regard, their investment and organisational plans are of major interest to me and I welcome all plans to upgrade our communications infrastructure.

It might also be noted that there is some debate around whether customers would be best served by functional opening of the network or by a structural split between the retail and network divisions of the business. The key issue is the implementation of the operational model that provides the optimum competitive environment and promotes investment and innovation by all telecoms providers. The Government is due to produce a policy paper on Next Generation Networks shortly which will set out the policy framework in this area and I look forward to Eircom's input into the consultation process on this document in light of their investment plans in this area.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 85: To ask the Minister for Communications, Energy and Natural Resources his views on the recent publication of figures from the Central Statistics Office, Information Society and Telecommunications 2007, that found that 54% of households here had a broadband connection compared to an EU27 average of 77%; and if he will make a statement on the matter. [14641/08]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The provision of broadband services is, in the first instance, a matter for the private sector. Broadband service providers operate in a fully liberalised market, 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 Central Statistics Office Information Society and Telecommunications survey has found that in the first quarter of 2007, 57% of Irish households had access to the internet compared to the European Union average of 54%. Of Irish households with Internet access in the first quarter of 2007, 54% had a broadband connection. This represents a significant increase on the 2006 figures when 26% of such Irish households had a broadband connection.

Although broadband is now widely available in Ireland there are still some parts of the country where the private sector will be unable to justify the commercial provision of broadband services. These areas are being addressed by the National Broadband Scheme (NBS), which will provide broadband services to areas that are currently unserved, and will ensure that all reasonable requests for broadband are met. The first phase of the NBS procurement process (Pre-Qualification Questionnaire (PQQ)) is now complete, and four candidates pre-qualified to enter the next phase of the procurement process. Following the withdrawal of the IFA/Motorola Consortium as a candidate, the remaining three candidates have now commenced "Competitive Dialogue" with my Department and are developing their proposed solutions to meet my 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 July 2008, with roll out to commence as soon as possible thereafter.

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