Written answers

Thursday, 13 April 2017

Department of Communications, Energy and Natural Resources

National Broadband Plan Implementation

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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338. To ask the Minister for Communications, Energy and Natural Resources the amount of subsidy for the contractor responsible for delivering the national broadband plan; the overall cost of this subsidy; and if he will make a statement on the matter. [19026/17]

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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339. To ask the Minister for Communications, Energy and Natural Resources the terms of agreement between his Department and a company (details supplied) with regard to the recent decision to take 300,000 homes and premises out of the State intervention area of the national broadband plan; and the penalties that will apply should the company fail to meet its commitment. [19027/17]

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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340. To ask the Minister for Communications, Energy and Natural Resources when negotiations began with a company (details supplied) over the recent decision to remove 300,000 homes from the national broadband plan; when the two other bidders (details supplied) were informed of this decision; and if he will make a statement on the matter. [19028/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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I propose to take Questions Nos. 338 to 340, inclusive, together.

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 have not been fully demonstrated.

A key principle of the NBP is to support and stimulate commercial investment through policy and regulatory measures. Commercial investment since the publication of the NBP has considerably exceeded expectations. To date, the commercial telecommunications sector has invested over €2.5bn in upgrading and modernising networks which support the provision of high speed broadband and mobile telecoms services.

The State is not a service provider in the telecoms market and in line with EU State Aid guidelines and competition rules can only intervene where there is clear evidence that the commercial sector has not and will not in the future invest. 

In October 2015 the Department published the process it proposed to adopt in order to assess commercial high speed broadband investment plans and made this available on the Department’s website. Plans received from commercial operators were subsequently assessed under technical, deployment and financial criteria, in line with the EU State Aid requirements.  This resulted in the publication of the High Speed Broadband Map in December 2015.  The Map is a critical aspect of State Aid compliance and the mapping process remained open in accordance with the published terms so as to ensure that existing plans are realised and that new development can be managed.

The Department commenced the procurement process in December 2015 in respect of the Intervention Area, based on the premises in the AMBER area of the High Speed Broadband Map published by the Department in December 2015.

As the Procurement process advances, a strong focus for the Department has been on ensuring that the promised services are delivered in those areas classified as “BLUE”, which are currently outside the scope of the procurement process.  Consultation with industry has intensified since January 2016, with a view to interrogating existing BLUE areas further.

Bidders have requested certainty on the Intervention Area to allow them to develop their business cases and the Department is also of the view that greater certainty on the map is required by bidders and is critical for the procurement process.

In November 2016 my Department initiated a review of an eir proposal to rollout fibre to 300,000 premises in rural areas on a commercial basis to a proportion of the Intervention area. This analysis is now complete and on 4 April, I signed a Commitment Agreement with eir in relation to their plans to provide high speed broadband to an additional 300,000 premises in rural areas on a commercial basis.  Eir has committed to doing this work over a 90 week period, with an average of 500 premises passed per day. The rollout plan has been agreed with my Department and this along with the tight deadline will be monitored closely by my Department to ensure that eir meets their obligations under the Agreement.  A copy of the Commitment Agreement is available on my website www.dccae.gov.ie.  The Agreement provides that penalties of scale may be imposed on eir, in the event of failure by eir to rollout in accordance with the Commitment Agreement, so as to ensure any costs incurred by my Department are reimbursed by eir. 

On the same day I published  an updated High Speed Broadband Map which is available at www.broadband.gov.ie. which finalises the State Intervention area. The updated Map shows the following categories of areas for delivery of broadband: 

- The BLUE areas represent those areas where commercial telecommunications providers are either currently delivering or have indicated plans to deliver high speed broadband services, 

- The AMBER areas on the High Speed Broadband Map represent the areas that will require State Intervention and are the subject of the current procurement process.

Individuals can themselves check whether their premises is in a BLUE or an AMBER area by accessing the High Speed Broadband Map and entering their Eircode at www.broadband.gov.ie

A formal procurement process is in train to select a company or companies who will roll-out a new high speed broadband network within the State Intervention Area. The procurement process is being intensively managed, to ensure an outcome that delivers a future-proofed network that serves homes and businesses across Ireland, for at least 25 years.  The finalisation of the State Intervention Area for the procurement process is an important milestone as it means that bidders can progress their business plans and the Department can move to the next stage of the procurement.   

The timeframe for the procurement continues to be dependent on a range of factors including the complexities that may be encountered by the procurement team and bidders, during the procurement process. During the Department's extensive stakeholder consultations in 2015, telecommunications service providers indicated a 3-5 year timeline to rollout a network of the scale envisaged under the NBP once contracts are in place.

The Programme for Government also commits to measures to assist in the rollout of the network once a contract is awarded.

The Department will engage with winning bidder(s) on the best rollout strategy, in order to target areas of particularly poor service, business needs and/or high demand and a prioritisation programme.

The Government remains committed to ensuring that all parts of Ireland will have at least 30Mbps connectivity, through public or private sector investment, as outlined in the National Broadband Plan.

The Government’s Capital Investment Plan published on 29 September 2015, includes an initial provision of €275m for the NBP up to 2021. The €275m represents an initial stimulus for the first five years of the NBP intervention. It is likely that a significantly higher level of funding will be required over the duration of the proposed 25 year term of the contract.  The level of exchequer funding required for the NBP will only be known after the competitive tender process has concluded and bidders provide their estimates of cost and subsidy requirements.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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341. To ask the Minister for Communications, Energy and Natural Resources the number of premises nationally forecasted to be covered by the national broadband plan and by commercial high speed broadband services, marked blue, amber and light blue on the latest high speed broadband map, by county, in tabular form; and if he will make a statement on the matter. [19062/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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The table shows the number of premises covered and to be covered by the National Broadband Plan.  The NBP is made up of commercial investment and a State Intervention.The information contained in the table is derived from the data provided by commercial operators to my Department in the course of the National Broadband Plan mapping exercise.  This exercise was conducted by the Department in the period from July 2013 – April 2017.

On the 4th April 2017, I published  an updated High Speed Broadband Map which is available at www.broadband.gov.ie.  The updated Map shows the following categories of areas for delivery of broadband: 

- The BLUE areas represent those areas where commercial telecommunications providers are either currently delivering or have indicated plans to deliver high speed broadband services, 

- The AMBER areas on the High Speed Broadband Map represent the areas that will require State Intervention and are the subject of the current procurement process.

The map provides information on a county by county basis.Individuals can themselves check whether their premises is in a BLUE or an AMBER area by accessing the High Speed Broadband Map and entering their Eircode at www.broadband.gov.ie.

The information below sets out the position at end 2016. The information in the table will be updated quarterly to reflect updates in the rollout.

County NameTotal Number of PremisesAMBER Premises Intervention AreaBlue Premises commercial operators 

LIGHT BLUE  

Premises Planned Commercial Rural Deployment Area *
Carlow27,668 7,880 15,8633,925
Cavan42,143 17,150 17,6647,329
Clare68,488 23,529 31,02313,936
Cork267,361 74,849 167,13925,373
Donegal101,184 34,105 42,78224,297
Dublin590,076 8,701 577,9053,470
Galway133,963 39,335 67,63326,995
Kerry89,068 29,090 34,98824,990
Kildare89,565 13,371 67,0639,131
Kilkenny47,650 17,901 22,4457,304
Laois38,927 12,721 21,1435,063
Leitrim22,263 11,318 7,9492,996
Limerick97,173 22,105 60,03615,032
Longford22,414 8,288 10,2873,839
Louth60,085 8,755 43,6187,712
Mayo83,214 37,046 30,10316,065
Meath83,031 19,370 50,66212,999
Monaghan32,845 15,792 12,5054,548
Offaly36,737 12,420 18,1666,151
Roscommon39,117 18,688 12,9847,445
Sligo39,978 14,386 19,6255,967
Tipperary83,976 30,428 38,04815,500
Waterford61,506 16,690 38,5626,254
Westmeath44,369 12,019 25,6646,686
Wexford81,796 21,78539,67420,337
Wicklow63,773 14,286 44,0415,446
Total2,348,370 542,008 1,517,572288,790

There are c.2.3m  premises covering Ireland’s 26 counties, of which approximately 542,000 premises are located in the AMBER area on the Map.  These premises will require State intervention and are the focus for the procurement process which formally commenced in December 2015.  The remaining 1.8m premises are located in the BLUE areas and will be/are served by commercial operators.  Of the 1.8m premises, some 288,000 premises fall within eir’s plans to deliver rural high speed broadband between now and end 2018.  Information on eir's planned rural deployment is available at .

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