Joe Carey (Clare, Fine Gael)
Link to this: Individually | In context | Oireachtas source

79. To ask the Minister for Communications, Climate Action and Environment the steps being taken as part of the national broadband plan to ensure that the broadband network is future proofed; and if he will make a statement on the matter. [21479/19]

Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The purpose of the National Broadband Plan is to ensure that over 1.1 million of our citizens in rural Ireland have the same opportunity to participate in the digital society as citizens living in urban areas. The availability of ubiquitous high speed broadband will bring significant benefits in areas of e-Health, e-Education, smart farming, regional development and tourism. The National Broadband Plan procurement process was technology neutral, as required under State Aid Guidelines for Broadband. This means it did not specify a preferred technology. However, all bidders in the process proposed fibre as the best solution. Fibre can meet the requirements set out in the NBP but also can be upgraded for additional capacity over time at low additional cost to network operators.

The basic product that will be offered on the State intervention network will be 150 megabits per second (Mbps), which is comparable to fibre networks in urban areas. The network is designed with a roadmap to upgrade the services over 25 years, including upgrades to increase residential speeds to 300Mbps by Year 6 of the contract and 500Mbps by year 10. This ensures the network is future proofed to meet requirements in years to come. A product of 1 Gigabit per second is also available to businesses and any residential homes that may require it.

Fibre can deliver up to 10 Gigabit per second speed with no major upgrades required, ensuring that the solution is future proofed and has a low running cost, making it an extremely efficient solution. Other broadband technologies such as 4G, 5G or fixed wireless, may be deployed to connect premises in limited circumstances where fibre is not cost-effective - for example for extremely remote or difficult to connect homes.

My Department considered other technologies than fibre and agreed with the national and international expertise in this area that a fibre-based solution was the most economical way to address all premises with a future-proofed solution over the 25 years of the contract, ensuring there is no need for a further State investment in the short term to replace an obsolete technology.

Brian Stanley (Laois, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

80. To ask the Minister for Communications, Climate Action and Environment the way in which the State subsidy towards the national broadband plan is structured over the course of the 25 year contract; and if he will make a statement on the matter. [21702/19]

Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The overall estimated total cost of the National Broadband Plan State intervention is approximately €5 Billion over 25 years, not including VAT. This covers not only the cost of building the network as would be the case in other procurements, but also to operate and maintain the network over 25 years. The maximum possible cost to the state will be €3 Billion over 25 years. This includes €545m for conditional and contingent subsidy and includes €354m in VAT, which will be paid to the Revenue Commissioners as subsidy is spent.Subsidy will not be paid to the company, National Broadband Ireland, until the milestones set down in the contract have been achieved and there are a comprehensive set of protections and legally binding obligations set out in the Contract which include a suite of key performance indicators to ensure the service is maintained appropriately.

The subsidy is capped as a maximum figure and National Broadband Ireland bears all risk beyond that provided for within the subsidy allowed. This includes, for example, the cost of materials, labour and lower than expected take up.

The subsidy is divided into:

- deployment subsidy which is paid retrospectively on a milestone basis in respect of the successful deployment of the pass network

- connection subsidy which is paid when connections have been made by NBI

- conditional and contingent subsidy which is a capped amount that can only be drawn down in certain specified circumstances where it was not possible for the bidder to quantify accurately as part of the final tender submission such as extreme weather events.

The controls set out in the NBP contract will play a key role in ensuring that costs are minimised and deliverables are met.

Jonathan O'Brien (Cork North Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

82. To ask the Minister for Communications, Climate Action and Environment if a company (details supplied) has the ability to sell the business and assets of the national broadband plan after full deployment; and if he will make a statement on the matter. [21716/19]

Brian Stanley (Laois, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

83. To ask the Minister for Communications, Climate Action and Environment the authority he has to control the future ownership of the national broadband network; and the consequences for a company (details supplied) in the event of a sale. [21703/19]

Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 82 and 83 together.

The change in ownership restrictions in place in relation to the NBP are consistent with normal practice in major infrastructure projects. National Broadband Ireland is obliged to seek the written consent of the Minister prior to the occurrence of a Change in Ownership of NBI that occurs at any time from the commencement of the contract up until one year after the completion of deployment. After the one year anniversary of the completion of deployment, the shares of NBI can be sold without Ministerial consent but not to Unsuitable Third Parties.

Unsuitable Third Parties include excluded parties specifically set out in EU procurement regulations, parties involved in the arms trade, parties who have been convicted of a criminal offence related to business, parties who have failed to comply with tax rules and parties whose activities pose a threat to national security. Also, if any shareholder has a contingent commitment to make a loan or equity or capital contribution to NBI, NBI is required, until that commitment has been delivered, to seek the written consent of the Minister to a Change in Ownership which results in the shareholder ceasing to have Control (i.e. a 30% shareholding or equivalent level of control) of NBI.

NBI is obliged to notify the Minister of any Change in Ownership throughout the life of the Contract and there are provisions in the Contract in relation to clawback payments in the event of a sale of NBI prior to contract year 10.

If a Change in Ownership occurs, NBI (in new ownership) will continue to be bound by the NBP Contract.

The Minister can terminate the NBP Contract and take ownership of NBI if there is an un-remedied change in ownership of NBI in breach of the NBP Contract.

The Minister will also have a priority (1st ranking) security over the shares in NBI. This creates a practical inhibitor on the shareholder disposing of those shares without the Minister being satisfied that the disposal is consistent with the Contract.

The Minister will also have priority (1st ranking) security over the Assets of NBI throughout the term of the NBP Contract. This means in practical terms that any material fixed Assets which NBI requires to perform the NBP Contract cannot be sold without the Minister’s consent.

Martin Heydon (Kildare South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

84. To ask the Minister for Communications, Climate Action and Environment the opportunities that will arise in healthcare provision in areas such as remote general practitioner and medical monitoring services as a result of the roll out of the national broadband plan; and if he will make a statement on the matter. [21553/19]

Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Access to high-speed broadband is key to supporting digitalisation in the health system enabling the transformation of healthcare delivery for citizens, clinicians and health and social care service providers. eHealth, supported by enhanced broadband connectivity, will provide opportunities for the health system to deliver digital solutions, through telemedicine and telehealth, to empower patients to manage chronic disease at home. It will also provide opportunities for better connectivity for remote healthcare facilities such as small health centres, community pharmacies, and GP practices located in rural areas. Some care previously provided in hospitals may be transferred to the home as the use of wearables and other interactive devices allow the remote monitoring of vital signs or even administration of medicine. Remote monitoring can complement medical healthcare and reduce the requirement to attend day clinics far away from people's homes. It can also accelerate early discharge and relieve pressure in hospitals and hospices. This is important to create bed capacity and reduce long term stays in hospitals.

Faster connectivity can also facilitate ongoing professional development for healthcare professionals and provide access to experienced colleagues via video conferencing and better access to digital medical databases no matter the location of the medical professional.

The successful deployment of the NBP is one of the key pillars to delivery of a more efficient, effective and lower cost health system in Ireland.

Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

86. To ask the Minister for Communications, Climate Action and Environment the timeline for the commencement of works on the ground under the national broadband plan; the measures contained within same to ensure rapid roll out of broadband services for rural areas, rural communities and regional towns; and if he will make a statement on the matter. [21344/19]

Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The purpose of the National Broadband Plan is to ensure that over 1.1 million of our citizens in rural Ireland have the same opportunity to participate in the digital society as citizens living in urban areas. The availability of ubiquitous high speed broadband will bring significant benefits in areas of e-Health, e-Education, smart farming, regional development and tourism. As the Deputy may be aware, following rigorous evaluation by my Department, I brought a recommendation to Government to confer Preferred Bidder status on Granahan McCourt, the remaining bidder in the NBP procurement process and the Government agreed to this at its meeting on 7 May.

This is an important step towards achieving the overarching goal of the National Broadband Plan, which is to provide access to high speed broadband to every home, farm, school and business in Ireland, no matter where they are located.

The Government decision means that it is intended to award the State Intervention contract to National Broadband Ireland, subject to contract close, including the finalisation of financial and legal documents. A period of final due diligence on all elements of the contract is part of the normal conclusion of a procurement process. A number of additional elements need to be concluded before the contract can be signed.

For example, NBI will be supported by a number of experienced subcontractors and is currently tasked with finalising negotiations on contracts with approximately 40 subcontractors to assist in the delivery of the NBP. In order to support deployment it is anticipated that a subset of approximately 15 to 20 of these subcontracts will be required prior to contract close. It is also necessary to submit the State Aid notification in relation to the NBP to the European Commission.

It is anticipated these elements will require a number of months, with contract close expected in late 2019 and deployment commencing shortly after that.

The Bidder has indicated that the NBP State intervention will take an estimated 7 years from the beginning of deployment

In the first year of roll out, the Bidder will deploy approximately 300 Broadband Connection Points (BCPs) across all counties. It is anticipated that between 7 and 23 BCPs will be deployed in each county. BCPs will provide a community based high speed broadband service, enhancing online participation and allowing for the establishment of digital work hubs in these locations. The Bidder is aiming to pass 133,000 premises by the end of the second year, with 70-100,000 passed each year thereafter until roll out is completed.