Written answers

Tuesday, 27 January 2009

Department of Communications, Energy and Natural Resources

Telecommunications Services

9:00 pm

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 1133: To ask the Minister for Communications, Energy and Natural Resources when discussions will be completed on the next generation broadband consultation papers; if a decision has been made on the roll out of phase II of the MANs projects; and if he will make a statement on the matter. [1234/09]

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 1134: To ask the Minister for Communications, Energy and Natural Resources when he expects to receive the draft policy paper on next generation broadband networks; if he will implement the value for money and policy review of phase one of the MANs programme; if he will provide the required funds for MANs projects in Castlerea and Boyle, County Roscommon; and if he will make a statement on the matter. [1235/09]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 1133 and 1134 together.

Consultations on the policy paper on Next Generation Broadband have concluded. The finalised paper will be published shortly taking into account the responses that have been received which were broadly in favour of the proposed policy actions. Phase II of the MANs programme is almost completed with 58 of the 60 MANs now available. Any future broadband investment decisions, including investment in further phases of the Metropolitan Area Networks (MANs) Programme, will be guided by (i) the final policy paper on Next Generation Broadband, (ii) the Value for Money and Policy Review of Phase I of the MANs Programme, which was published last year, (iii) any other analysis as appropriate and (iv) the availability of resources.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 1136: To ask the Minister for Communications, Energy and Natural Resources his policy relating to those who have carrier lines and are therefore unable to get broadband in their houses. [1382/09]

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 1138: To ask the Minister for Communications, Energy and Natural Resources the percentage of broadband penetration he is working towards once the national broadband scheme is completed, and once Eircom completes its projected upgrading of exchanges by 2009; the action he plans to take with the unconnected households thereafter; and if he will make a statement on the households that will not be covered by then, either because of lack of proximity to a working exchange, or because they are on a carrier line. [1384/09]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Question Nos. 1136 and 1138 together.

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 continues to be a priority for the Government. In that regard my Department has undertaken various initiatives to address the gaps in broadband coverage. While the provision of broadband services, including the digital subscriber line (DSL) enabling of exchanges is a matter for the service providers, 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 National Broadband Scheme (NBS) was initiated. All residences and business premises within the NBS coverage area will be able to receive broadband services by end September 2010. The impact of the NBS will mean that there will be no unserved areas for broadband and this will further improve the strong strides made recently in regard to broadband penetration. The latest figures from ComReg indicate that there are now some 1.125 million subscribers.

EU State Aid and competition rules prevent States from intervening in the areas already substantially served by broadband. While recognising that some premises within substantially served areas may have difficulties for whatever reason (long lines, pair gains, no line of sight etc.) in receiving a broadband service, the NBS scheme cannot cater for such limited instances. It is expected that, over time, competing service providers would be attracted to offer services in such areas, given that those areas are already commercially viable for the existing service provider(s).

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 1137: To ask the Minister for Communications, Energy and Natural Resources the position regarding the national broadband scheme, particularly in relation to south Tipperary; the amount that has been budgeted for delivery of the scheme in the next 18 months; the amount of the money budgeted for the broadband roll out over the past five years that has been spent on broadband roll out; and the way he plans to bring Ireland up to the OECD standards in the next 18 months. [1383/09]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The National Broadband Scheme (NBS) is designed to deliver broadband to areas where the market has failed to provide services including any unserved rural areas in south Tipperary. It will bridge the digital divide, create greater equality in terms of social and economic inclusion and remove the disadvantage caused by a lack of broadband services. It will also facilitate competition in the broadband market in the regions leading to greater choice, quality and value for money to the consumer.

Following the conclusion of a competitive tendering process, my Department has entered into a contract with "3", a Hutchison Whampoa company, for the delivery of the NBS. 3 will be required to provide services to all residences and businesses that fall within the NBS and who seek a service. In order to facilitate competition in the area, 3 will also be required to provide wholesale access to any other authorised operator who wishes to serve residences and businesses in the NBS area. 3 is currently planning the roll out of the NBS and this roll out will begin in the coming months. Details of the areas to be covered by "3" under the NBS are available at www.three.ie/nbs.

Challenging roll out targets have been agreed with 3 and payments will be made on the basis of the roll out of the network which will provide 100% broadband coverage in the NBS area within 21 months of contract signing. Of the Government's total contribution to the NBS amounting to €79.8 million, approximately €62 million will have been paid to 3 in 18 months time in accordance with the roll out targets.

Over the period 2004-2008 some €164.954m has been spent on Information and Communications Technology (ICT) investment. This includes investment in grant aiding private sector investment, investment in the Metropolitan Area Networks (MANs) Programme, the Group Broadband Scheme (GBS), the National Broadband Scheme (NBS) and the Schools Broadband Programme.

The National Development Plan for 2007 to 2013 envisages total investment over the period of €435 million for communications and broadband. €48.183m has been allocated for expenditure on the ICT Programme during 2009. The main projects for investment in 2009 include: the National Broadband Scheme (NBS); completion of Phase II of the MANs Programme; the procurement of a Management Services Entity for the Phase II MANs; an international connectivity project in partnership with the Department of Enterprise, Trade and Investment in Northern Ireland (Project Kelvin); and a demonstration project to deliver 100mbps broadband connectivity to post primary schools.

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. In that regard it is envisaged that the investment by the service providers, facilitated by initiatives such as those outlined above, will underpin Ireland's continued strong growth in OECD and EU broadband tables. That growth is reflected in the facts that 59% of households (end Q3 2008) and 83% of SMEs (end Q1 2008) in Ireland have a broadband connection.

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