Written answers

Tuesday, 15 December 2015

Department of Communications, Energy and Natural Resources

National Broadband Plan Implementation

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein)
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51. To ask the Minister for Communications, Energy and Natural Resources the ownership of the broadband infrastructure as part of the national broadband plan intervention strategy; the cost to the public Exchequer; and the date for the construction of this project. [44814/15]

Photo of Alex WhiteAlex White (Dublin South, Labour)
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The Government's National Broadband Plan (NBP) 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 proposed State intervention under the National Broadband Plan (NBP) represents a very significant capital investment project for the State.

On 29 September the Government published its 6 year Capital Plan, Building on Recovery, which included an allocation of €275m for the National Broadband Plan. This will provide the initial stimulus required to deliver the Government's intervention.

Funding of €75m is committed through the European Regional Development Fund (ERDF); state expenditure of €150m is required before the €75m under the European Regional Development Fund can be drawn down.

On 14 July last I published a detailed draft Intervention Strategy for public consultation. The strategy addressed a number of issues in relation to the intervention among these the proposed ownership model for the infrastructure. The options ranged from a commercial stimulus model, in which a limited amount of Government funding is used to stimulate commercial investment in the intervention area, to a fully owned public utility, funded entirely by the Exchequer.

This consultation closed on 25 September last. 41 submissions were received to the public consultation and non-confidential versions of these submissions are available on the Department's website

These submissions have been carefully considered and the Intervention Strategy is now being updated in advance of moving to formal procurement by the end of the year. The ownership model is being considered as part of this process.

Regardless of which ownership option is chosen, the exact amount of funding required will ultimately be determined by a competitive procurement process. It would not therefore be appropriate in advance to speculate on the potential cost. Bidders will be expected to meet the standards set out in the finalised strategy, at least cost to the Exchequer.

The Department will design a tender in a way that maximises efficiencies and keeps the cost of the network build as low as possible. I anticipate that the physical build of this network will commence from 2016 and be completed by 2020.

The Government is determined to ensure that the network is built out as quickly as possible and engagement with industry stakeholders has indicated that this could be achieved within 3 to 5 years of the contract award. Our aim is to ensure that 85% of Ireland's premises have high speed broadband by 2018, with an ambition of 100% coverage by 2020.

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