Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 59: To ask the Minister for Communications, Energy and Natural Resources the steps he is taking to provide broadband coverage to areas not serviced by the national broadband scheme; and if he will make a statement on the matter. [24033/09]

Eamon Ryan (Dublin South, Green Party)
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In designing the National Broadband Scheme (NBS), which was approved by the EU Commission, my Department needed to strike a balance between reaching as many unserved premises as possible and minimising the impact of the scheme on businesses already providing broadband services in rural areas, thereby minimising market distortion in accordance with EU State Aid rules.

The NBS will be rolled out on an electoral division (ED) basis, which are the smallest administrative areas used for statistical purposes in the country. In adopting the ED model my Department was faced with a further decision to determine which EDs should be addressed by the NBS. This decision was made based on levels of the existing combined broadband coverage in relevant EDs. Where an ED is completely unserved by any existing service provider it is included in the NBS. Where it is substantially covered by existing service providers it is excluded from the NBS. Where an ED is not substantially covered by existing service providers, it will be addressed by the Scheme. In this regard EU State Aid and competition rules govern how States can intervene in areas that are already substantially served by broadband. While recognising that some premises within substantially served areas may have difficulties for a variety of reasons in receiving a broadband service, the NBS cannot cater for such limited instances as to do so would give rise to an unacceptable level of market distortion.

It is expected that over time, as competition increases, service providers will be attracted to offer service to unserved premises in these areas. It is also expected that technology innovations e.g. improved satellite broadband services, will result in increased competition in these areas.