Written answers

Tuesday, 28 April 2015

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 the estimated cost for the broadband mapping process, and the projected estimated cost of the fibre roll-out under the national broadband plan. [16290/15]

Photo of Alex WhiteAlex White (Dublin South, Labour)
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The proposed State intervention under the National Broadband Plan represents a very significant capital investment project for the State. I have undertaken to complete a detailed intervention strategy that will be submitted to Government in the middle of this year. 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 mid-2015. A detailed procurement process will be undertaken in order to select a potential bidder or bidders towards the end of 2015 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.

The mapping process is one aspect of the very detailed intervention strategy under the National Broadband Plan and was undertaken by my own Department and its advisers, in consultation with industry.

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

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