Written answers

Wednesday, 29 September 2010

Department of Communications, Energy and Natural Resources

Telecommunications Services

11:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 1539: To ask the Minister for Communications, Energy and Natural Resources if it is still his policy to encourage the separation of Eircom's network from its retail business; and if he will make a statement on the matter. [33148/10]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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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) on any regulatory issues that might arise in a separated company. The Government has no role in the corporate strategy of a private company and ComReg is statutorily independent in the exercise of its functions.

Government policy aims to facilitate effective competition in the electronic communications market. The availability of appropriate wholesale products from eircom to alternative operators is crucial to facilitating such competition. Various different forms of separation are possible to ensure the availability of wholesale products and ComReg is charged with ensuring such products are available. Various recent developments, in terms of new products released by eircom, as well as decisions made by ComReg, have resulted in increased competition in the market. I am satisfied that the current policy environment and the regulatory regime, including appropriate access to the eircom network for alternative operators, are facilitating competition, reduced prices, greater choice and improved quality.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 1540: To ask the Minister for Communications, Energy and Natural Resources if he is satisfied that the Broadcasting Authority of Ireland has adequate powers to enable it to secure a deal between RTENL and a company or consortium to provide a pay TV option for Digital Terrestrial Television users; his plans to amend the Broadcasting Act to enhance the powers of the BAI in this regard; and if he will make a statement on the matter. [33153/10]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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One of the main aims of the Broadcasting Act 2009 was to provide opportunities for the development of a commercial digital terrestrial television (DTT) service in Ireland. In this regard, the Broadcasting Authority of Ireland (BAI) was given the role of providing for commercial DTT service providers. In particular, the legislation made provision for the BAI to enter into contracts with commercial multiplex service providers to establish, maintain and operate a multiplex within the coverage area specified in the contract and for the term of the contract.

As the Deputy is aware, the competition initiated by the Broadcasting Commission of Ireland (BCI) in 2008 failed to produce a national commercial DTT service provider and this failure has been largely attributed to the economic downturn and the consequential impact that this had on the business cases of the applicants. The failure of the commercial DTT process was disappointing and it is now not expected that a commercial DTT operator will materialise until sometime after analogue switch off in 2012. As a result, consideration of the potential in this regard and of the most appropriate mechanisms for delivering this will be undertaken closer to that time.

In the meantime, the clear responsibility of my Department, in conjunction with the BAI, ComReg and other stakeholders, is to ensure the successful delivery of the 'free-to-air' DTT service to the viewing public. I have directed that this be done by the autumn of 2012 to facilitate switch-off of the analogue system and the consequential digital dividend that will arise.

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