Mick Barry (Cork North Central, Anti-Austerity Alliance)
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33. To ask the Minister for Communications, Energy and Natural Resources the measures he will take to ensure future investment in the broadband network infrastructure, once ownership has been transferred to a private company after the 25 year national broadband plan contract has expired; and if he will make a statement on the matter. [21620/16]

Denis Naughten (Roscommon-Galway, Independent)
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The National Broadband Plan (NBP) aims to deliver high speed services to every city, town, village and individual premises in Ireland. Delivery of high speed broadband is a strategic priority under the Programme for a Partnership Government.  This is being achieved through private investment by commercial telecommunications companies and through a State intervention in areas where commercial investment is not forthcoming. The Government has chosen the Commercial Stimulus model as the optimum approach for the National Broadband Plan intervention.  The decision on ownership has allowed the procurement phase to move to the next stage, where three bidders have qualified and been invited to participate in formal dialogue with the Department. The Dialogue process with bidders will commence next week.

Following this Invitation to Participate in Dialogue (ITPD) stage, which will take a number of months, the Department will issue final tender documentation to bidders, when final tenders have been submitted a winning bidder(s) will be selected for the contract which will comprise one or two lots as set out in the NBP Intervention Strategy. The Department will then enter into formal contact negotiations with the winning bidder(s), prior to award of a contract. 

As part of the competitive process, the Department will engage with winning bidder(s) on the best roll-out strategy, in order to target areas of particularly poor service, business needs and / or high demand. This will need to be balanced with the most efficient network roll-out plan. A prioritisation programme will be put in place in this regard, in consultation with the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs. A detailed roll-out plan for the network will be published once contract(s) are in place.

The contract(s) with the preferred bidder(s) will include robust governance provisions and an appropriate minimum set of risk management measures. Provisions will be in place for the State to claw-back a portion of any network build, or operating profits over and above those anticipated in the contract(s). There will also be mechanisms to deduct service credits from the contractor(s), where milestones or contract conditions are not met.

In addition to contract provisions, if the winning bidder(s) is deemed by ComReg to have significant market dominance in the Intervention Area, regulation will provide an added layer of control over and above the contract with the State. Through regulation, ComReg has the statutory obligation to incentivise re-investment in a regulated network, to promote competition and to protect the interests of end users. It must also ensure that regulation in Ireland and the activities of regulated companies in Ireland are consistent with other comparable Member States. ComReg will play a key role in monitoring the activity of the winning bidder(s), and may, subject to whether the winning bidder(s) has significant market dominance or not, regulate the winning bidder(s) during and post-contract.   

I am conscious of the need to put in place strong contract governance structures to manage the contract(s) over a 25 year period. To this end, I will bring forward proposals in the coming months, including legislation, to establish a dedicated entity to manage this and other State telecoms contracts or to assign this role to an existing State entity.

I am also aware of the need to ensure continuity of service in 26 years, when the contract has expired.  My Department has already had discussions with ComReg with a view to putting in place legislation that could enhance ComReg's regulatory oversight. I have also discussed with ComReg, the possibility of a Universal Service Obligation as an effective mechanism to ensure continuity of services beyond 2042 when the contract expires. In anticipation of the need for such an arrangement, I have raised this issue at European level in advance of the review of the Telecommunications Regulatory Framework which is scheduled to commence later this year.