Michael Healy-Rae (Kerry South, Independent)
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1637. To ask the Minister for Communications, Energy and Natural Resources if a new subsidy will be introduced to help keep down the cost of broadband services for dwellers in rural areas, in place of the current subsidy which expired at the end of August. [33423/14]

Alex White (Dublin South, Labour)
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The provision of telecommunications services, including broadband services, is a matter in the first instance for private sector service providers operating in a liberalised market, regulated by the Commission for Communications Regulation (ComReg). Developments in the broadband market over recent years means that there is now a choice of commercial operators offering broadband services over a diverse range of technology platforms throughout much of rural Ireland, including the area previously covered by the National Broadband Scheme. Details of commercial services available in each county can be found on a number of websites, including the websites of individual operators.

The State can only intervene to ensure access to broadband services in areas where the competitive market has failed to deliver such services, as in the case of the National Broadband Scheme (NBS). Following an extensive mapping exercise and a competitive tendering process, my Department entered into a contract in late 2008 with Hutchison 3G Ireland Ltd (“3”) for the delivery of the NBS. The Scheme offered a basic and affordable broadband service to fixed residences and businesses located within certain designated rural areas where the extent of broadband coverage by commercial operators, at the time the Scheme was launched in 2008, was deemed to be inadequate. EU State Aid approval was granted for a scheme of limited duration and, following a 68 month operational period, the Scheme expired on 25th August 2014.

“3” have confirmed that, following the expiry of the Scheme, they will continue to provide coverage throughout NBS areas on a commercial basis offering consumers the same choice of Broadband plans and tariffs as those offered to consumers outside of the NBS areas. Furthermore, they have also informed my Department of their plans to extend 4G coverage across all of the NBS Coverage Areas within the next 3 years.

The Government’s Statement of Priorities for the period 2014 to 2016 reaffirms our commitment to delivering a State-led broadband intervention in rural areas. Through the implementation of the Government’s National Broadband Plan (NBP) we aim to radically change the broadband landscape in Ireland, ensuring that high speed broadband is available to all citizens and businesses. This is being achieved through measures designed to accelerate commercial investment and the development of a State-led intervention for non-commercial areas.

Since publication of the Plan, investments by the commercial sector have accelerated. Commercial operators have invested, or are committing to invest approximately €2.5 billion in upgrading telecommunications networks and services. I understand that at least one network operator has published a programme to roll out 33 fibre-based broadband networks in County Kerry by mid 2016.

While the accelerated commercial investment is welcome, it is largely focussed on cities and larger towns. The intervention strategy envisaged by Government recognises that quality broadband is a priority service for a 21st Century society. Central to the strategy therefore will be a major infrastructure build, which is likely to be primarily fibre-based. This will be designed to ensure that high quality broadband services are available in all parts of Ireland where commerical investment will not be forthcoming.

Under EU State Aid Guidelines Member States cannot intervene where commercial investors have plans to roll out services. A comprehensive mapping exercise is underway in my Department to identify those areas that require a State intervention. An initial list of areas has already been identified and includes 59 areas in County Kerry.

As part of the mapping process, a stakeholder consultation was launched in June with a deadline of this month for receipt of submissions. I expect to publish the maps for public consultation later this year. Details of the areas requiring State intervention will not be confirmed until then. A further public consultation on the proposed intervention strategy will be launched in mid-2015.

EU State Aid clearance will be required for the proposed State intervention. My Department will be working closely with the European Commission on this important aspect of the programme.

Finally, a detailed procurement process will have to be undertaken in order to select a potential preferred bidder(s) prior to commencing the roll out of high speed broadband services.

This complex and ambitious project is a key priority for Government and for my Department. It aims to conclusively address current connectivity challenges in a sustainable and meaningful way. Our goal is to ensure that quality broadband services are available to all citizens regardless of where they are located.