Joe McHugh (Donegal North East, Fine Gael)
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Question 821: To ask the Minister for Communications, Energy and Natural Resources if he will make a comprehensive statement on the planned delivery of broadband to an area (details supplied) in County Donegal; when broadband will be delivered to each part of this area; his view on the importance of broadband for business and social purposes in this geographical area; and if he will make a statement on the matter. [15812/10]

Eamon Ryan (Dublin South, Green Party)
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Prior to the commencement of the National Broadband Scheme (NBS) a detailed mapping exercise was carried out to help determine those areas that would be included in the scheme and those who, by virtue of already being substantially served by existing broadband suppliers, were to be excluded. EU state aid and competition rules govern how states can intervene in areas where there are existing service providers. Accordingly, the NBS is prohibited from providing a service in served areas where to do so would give rise to an unacceptable level of market distortion. The mapping exercise found two broadband suppliers active in the areas cited in the Deputy's question and consequently the localities were excluded from the Scheme.

As the Deputy will be aware Ireland's telecommunications market has been fully open to competition since 1999 and Government intervention into this market can only happen in the event of clear market failure as in the example of the NBS. However, it is acknowledged that even with a fully competitive market and with the full roll-out of the NBS there will still be a small percentage of premises that will not be capable of receiving broadband services, primarily due to technical reasons.

The EU Commission has announced the European Economic Recovery Plan (EERP) under which some funding has been set aside for rural broadband initiatives. My Department is currently considering the detailed design and implementation of a scheme which would address the issue of those remaining un-served rural premises outside of the NBS areas, including any un-served premises in County Donegal. It is hoped to commence the scheme later this year with the identification of premises not capable of receiving broadband. State Aid approval has been granted by the European Commission as part of the overall process of securing the necessary approvals and funding for the scheme.