Written answers

Tuesday, 17 January 2017

Department of Communications, Energy and Natural Resources

Broadband Service Provision

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent)
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1491. To ask the Minister for Communications, Energy and Natural Resources the reason his Department did not issue a policy directive under sections 12 and 13 of the Broadcasting Act 2009; his views on whether the failure by his Department to issue a directive since 2003 has impeded investment and the roll-out of competitive alternative high-speed next generation access, NGA, services in the past three years; his further views on whether this lack of direction by his Department could be considered a breach of the State’s obligation to promote competition in the provision of NGA services under the State aid guidelines governing the National Broadband Plan, NBP intervention and the impact of this on the NBP; and if he will make a statement on the matter. [1025/17]

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent)
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1492. To ask the Minister for Communications, Energy and Natural Resources his views on whether ComReg, which is obliged to implement Government policy directives issued to it by him in regulating the market, is doing so in the absence of a current directive on the National Broadband Plan, NBP, and is relying on an expired 2003 directive; his further views on whether the current award process is in line with the NBP and the State’s obligations to protect and promote competition in the market for next generation access services; and if he will make a statement on the matter. [1026/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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I propose to take Questions Nos. 1491 and 1492 together.

The provision of telecommunications services, including Next Generation Access Services, is undertaken by telecommunications service providers operating in a fully liberalised market under licences provided by the Commission for Communications Regulation (ComReg). The regulation of telecommunications operators is the statutory responsibility of the ComReg, which is independent in its functions.

Both policy and regulation have contributed substantially to the rollout of high speed broadband networks in the last number of years. ComReg's NGA decisions in 2013 created the framework to drive accelerated investment in high speed broadband, which is now available to approximately 1.4m premises in Ireland. ComReg's multiband spectrum auction in 2012 has also allowed the extensive rollout of 4G networks with at least one operator now having in excess of 90% population coverage. From a policy perspective the National Broadband Plan is also driving investment, and legislation passed by the Houses of the Oireachtas to allow ESB to use its network to deliver high speed broadband services, has resulted in fibre-to-the-home services being rolled out currently in 17 regional towns.

In October 2016, I signed Regulations which will allow ComReg to allocate spectrum in the 3.6GHz band (Wireless telegraphy (3.6GHz Band Licences) Regulations, 2016 (S.I.  532 of 2016)). The liberalisation of this band is an EU requirement and the adoption of the 3.6 GHz EC Decision is mandatory for all EU Member States, including Ireland. This Decision is service-neutral, technology-neutral and expressly obliges Member States to allow the use of the entire 3.6GHz band fixed and mobile services. The release of spectrum in this band will provide an 86% increase in total spectrum available for mobile and/or fixed wireless services, leading to better quality voice and data services to customers across Ireland.

ComReg is independent in its functions and I have no role in the process for allocating the spectrum which is now underway. Having regard to the independence of ComReg in the matter and the fact that a process is underway, it would not be appropriate for me to comment further on the matter at this time. I would note however that the allocation process followed extensive public consultation by ComReg over almost a two year period. I have no reason to believe that the process being currently undertaken by ComReg will not result in the fair allocation of any future spectrum assignment and I expect the outcome of the process to provide a level of certainty and transparency for all stakeholders. A policy direction is neither necessary nor appropriate in the circumstances.

Investment decisions by the commercial telecommunications networks providers in the electronic communications market, including investment decisions on the rollout of Next Generation Access (NGA) are taken purely on commercial grounds by each network operator, having regard to the predicted investment cost and the anticipated revenue returns from any such investment. The State can only intervene in this market in cases of clear market failure. In this regard the National Broadband Plan aims to bring competitively priced quality services to rural areas, through a State intervention to build a new high speed broadband network. It is envisaged that this network will offer wholesale services to multiple retailers, who can in turn offer competitive, affordable and high speed broadband to users.

The Plan aims to deliver high speed services to every city, town, village and individual premises in Ireland. The Programme for Government commits to the delivery of the NBP as a matter of priority. This is being achieved through private investment by commercial telecommunications companies and through a State intervention in areas where commercial investment has not been fully demonstrated.

The Department is now in a formal procurement process to select a company or companies who will roll-out a new high speed broadband network in the State Intervention Area. The procurement process is technology neutral. All three bidders involved in the competitive dialogue process are however proposing a predominantly fibre- to- the –home network solution to connect rural Ireland. Wireless technology may also play a role in part of the overall solution. It is a matter for the bidders in the process to put forward the technologies they believe are most appropriate to meet the NBP objectives.

Accordingly, I do not propose, nor do I see any necessity, to issue any policy direction to ComReg in this regard.

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent)
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1493. To ask the Minister for Communications, Energy and Natural Resources his views on whether the upcoming 3.6 Ghz spectrum award could result in the reduction of competition in the next generation access, NGA, market while increasing the scale and cost to the State of the proposed National Broadband Plan, NBP, intervention; his plans to ensure effective competition in the NGA market post the spectrum award process, ensuring continuation and investment in competitive NGA fixed wireless services; and if he will make a statement on the matter. [1027/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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The management of the radio spectrum is a statutory function of the Commission for Communications Regulation (ComReg) under the Communications Regulation Act 2002, as amended. This role includes the allocation of radio spectrum, the award of spectrum licences and the associated application of terms and conditions and obligations. ComReg is independent in the exercise of this spectrum management function.

In October 2016, I signed Regulations which will allow ComReg to allocate spectrum in the 3.6GHz band. The allocation will provide an 86% increase in total spectrum available for mobile and fixed wireless services. The liberalisation of this band is in accordance with EU rules, and will allow the band to be used for a combination of mobile and wireless services, providing better quality voice and data services to customers across Ireland.

I have no role or function in the delivery of the allocation process, which is a matter for ComReg. I am aware that ComReg has recently concluded its consultation process on the award process for the 3.6GHz spectrum band, including from parties who may wish to provide fixed broadband services and others who may see this band as an opportunity to provide new services. ComReg has considered the views of all respondents and its decisions on this band must accord with its own statutory functions, objectives powers and duties.

The aim of the National Broadband Plan is to bring competitively priced quality services to rural areas, through a State intervention to build a new high speed broadband network. It is envisaged that this network will offer wholesale services to multiple retailers, who can in turn offer competitive and affordable and high speed broadband to users.

The Plan aims to deliver high speed services to every city, town, village and individual premises in Ireland. The Programme for Government commits to the delivery of the NBP as a matter of priority. This is being achieved through private investment by commercial telecommunications companies and through a State intervention in areas where commercial investment has not been fully demonstrated.

The Department is now in a formal procurement process to select a company or companies who will roll-out a new high speed broadband network in the State Intervention Area. 

The procurement process is technology neutral. All three bidders involved in the competitive dialogue process are however proposing a predominantly fibre- to- the –home network solution to connect rural Ireland. This is their choice of technology. It is  possible that wireless technology may be part of the solutions proposed and this is a matter for bidders. Furthermore, as the network to be built will offer wholesale services, on an open-access basis, it will be open to existing wireless retailers to offer services on the new network. Wireless operators can also connect their technologies to the network if they can meet the high speed broadband specifications set out in the Plan, which includes a minimum of 30 megabit per second download speed and 6 megabit per second upload speed.

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