Mattie McGrath (Tipperary South, Independent)
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15. To ask the Minister for Communications, Energy and Natural Resources the time frame for the roll-out of rural broadband; the funding that will be provided for same; and if he will make a statement on the matter. [16200/15]

Alex White (Dublin South, Labour)
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The National Broadband Plan aims to ensure that every citizen and business, regardless of location, has access to a high quality, high speed broadband service. This will be achieved through a combination of commercial investments and a State led intervention in areas where commercial services will not be provided.

The commercial telecommunications sector is currently investing approximately €2.5 billion in network upgrades and enhanced services with approximately 1.6 million of the 2.3 million premises in Ireland expected to have access to commercial high speed broadband services over the next two years. These very significant investments represent a step-change in the quality of broadband services available.

The proposed State intervention under the NBP represents a very significant capital investment project for the State. I have undertaken to complete a detailed intervention strategy that will be published for public consultaiton in July. Costs associated with the Government’s intervention are an important part of the detailed work that is being undertaken to finalise the strategy. Ultimately however, the outcome of the tender process will determine the final cost of the intervention.

The 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 potential cost of the intervention;

- Funding options;

- The appropriate duration of the contract; and

- How the service quality is to be measured and assured.

Because a very competitive procurement process is anticipated, it would be neither advisable nor appropriate to speculate about potential costs at this stage and it is preferable to allow the market players bid what they deem an appropriate price, taking account of the Government's decisions on the key issues, such as those I have already outlined.

The next steps in this process will see a further public consultation on the detailed intervention strategy in the middle of this year. A detailed procurement process will be undertaken in order to select a potential bidder or bidders towards the end of the year and in this regard the tender will be designed in a way that maximise efficiencies and keeps the cost to taxpayers as low as possible. It is expected that the physical build of this network will commence from 2016.

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