Written answers

Wednesday, 27 May 2009

Department of Communications, Energy and Natural Resources

Telecommunications Services

9:00 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 192: To ask the Minister for Communications, Energy and Natural Resources the changes which have taken place to phase two of the MANS in view of the recommendations of the value for money and policy review of the Metropolitan Area Networks carried out for his Department (details supplied); and if he will make a statement on the matter. [21826/09]

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 193: To ask the Minister for Communications, Energy and Natural Resources the number of towns in MANs phase II which have a population of less than 9,000; the number of these towns which had a formal case by case evaluation for value for money; if they were conducted on the basis of the capital appraisal guidelines from the Department of Finance, and include either a multi criterion analysis or cost benefit analysis; the key performance indicators for future projects; and if he will make a statement on the matter. [21837/09]

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 194: To ask the Minister for Communications, Energy and Natural Resources his views on the value for money audit conducted on MANs I which found that the planning and selection process of towns to be included in MANs was not sufficiently thorough; if the planning and selections process was changed for MANs II; and if he will make a statement on the matter. [21838/09]

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 195: To ask the Minister for Communications, Energy and Natural Resources the number of towns under MANs without a client; the cost of installing infrastructure in these towns; and if he will make a statement on the matter. [21839/09]

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 196: To ask the Minister for Communications, Energy and Natural Resources his views on whether all MANs projects are value for money; and if he will make a statement on the matter. [21840/09]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 192 to 196, inclusive, together.

Metropolitan Area Networks (MANs) are high-speed, open access, carrier neutral electronic communications networks, which facilitate competition in the electronic communications market in regional towns and cities nationwide. Phase I of this Programme has so far delivered optical fibre based networks to twenty-seven towns and cities throughout the country.

All twenty-seven are operational and open for business and thirty-four service providers are currently offering services on twenty-three of the Phase I MANs. The cost of the Phase I MANs Programme was approximately €85 million. Four Phase I MANs are not currently used by service providers. These are: Carrickmacross, Gaoth Dobhair, Kiltimagh and Kingscourt. The cost of constructing these four networks was approximately €2.8 million. While these networks are not yet being used, the significant increase in the demand for bandwidth is leading to greater demand for fibre based products and services. It is expected that all MANs will be used in the medium to long term.

A further ninety-four towns were identified as locations for MANs under Phase II of the Programme on the basis that there was no DSL broadband available from the incumbent service provider in each of these locations. The Government approved the building of the Phase II MANs in November 2003. Fifty-nine of these MANs covering sixty-five towns have been completed to date. A further MAN is currently under construction and is expected to be completed in early 2010. The cost to date of Phase II of the MANs Programme, is approximately €87 million. Fifty-five of these sixty Phase II MANs are servicing towns with populations of less than 9,000 persons.

A procurement process for the appointment of a Managed Service Entity (MSE II) to manage the Phase II MANs is almost complete. Once appointed, the MSE will offer the Phase II MANs to service providers that can offer their services to end users using the state-of-the-art networks in the regional towns. Until such time as the MSE II is appointed, an interim arrangement has been put in place to allow service providers to use the MANs. Service providers are currently offering services on four Phase II MANs. It is expected that the number of service providers and MANs being used will increase once the MSE II is in place.

A Value for Money and Policy Review (VFM&PR) of Phase I of the MANs Programme was published in June 2008. In December 2007, having considered an early draft of the VFM&PR, I deemed it prudent to suspend the commencement of those Phase II MANs projects for which a contract was not already in place pending the outcome of the Value for Money and Policy Review of Phase I of the MANs Programme and the final policy paper on Next Generation Broadband.

Any future broadband investment decisions, including investment in further phases of the Metropolitan Area Networks (MANs) Programme, will be guided by: the final policy paper on Next Generation Broadband, which will be published shortly; the Value for Money and Policy Review of Phase I of the MANs Programme, which was published last year; any other analysis as appropriate; and the availability of resources.

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