Written answers

Thursday, 11 December 2014

Department of Communications, Energy and Natural Resources

Broadband Service Expenditure

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein)
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16. To ask the Minister for Communications, Energy and Natural Resources if he has projected costs for the State in the rolling out of broadband infrastructure as outlined in the recent mapping process; and the person this long-term operator and owner of this infrastructure will be. [47312/14]

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
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The proposed State intervention under the National Broadband Plan (NBP) represents a very significant capital investment project for the State. The Minister has undertaken to complete a detailed intervention strategy that will be submitted to Government in mid-2015.This process is complex and will include close examination of issues such as:

- The appropriate ownership model for the infrastructure;

- Whether there will there be a single contractor or multiple contractors to build the infrastructure;

- The appropriate duration of the contract; and

- How the service quality is to be measured and assured

Consideration will also be given to the identification of strategic connection points, for example, business and enterprise parks, schools, hospitals, Garda Stations and any other centres of economic or social activity in rural communities. Part of the necessary analysis will be to examine the feasibility of identifying and prioritising particular parts of the country that might be considered black-spots in terms of overall quality of existing broadband coverage.

The scale of the planned intervention means it is likely that the overall cost will be significant. However, given the current dynamic that exists in the commercial market, it is expected that there will be a highly competitive procurement process.

Detailed technical, legal, regulatory and financial and economic evaluations are required to ensure that the State's intervention is fully compliant with EU rules rules. My Department is working with a number of Government Departments, and both State and European agencies, to explore all possible funding options and ensure the optimum arrangements for financing this major infrastructure investment.

The next steps in this process will see a further public consultation on a detailed intervention strategy in mid-2015. A detailed procurement process will be undertaken in order to select a potential preferred bidder or bidders towards the end of 2015. We will be designing the tender in a way that maximises efficiencies and keeps the cost to taxpayers as low as possible.

This complex and ambitious project is a key priority for Government. It aims to conclusively address current and future connectivity challenges in Ireland.

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