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Dáil Éireann debate -
Thursday, 3 Oct 1996

Vol. 469 No. 4

Adjournment Debate. - Telecommunications Services.

Ba mhaith liom buíochas a ghlacadh leis an Aire Stáit as ucht teacht isteach tráthnóna agus éisteacht leis an gcás a dhéanadh.

The Minister of State will recall that when we were Members of another House this was a hobby horse of mine. Some progress has been made but not enough to satisfy me. As a great believer in technology I am always surprised at how slow technological industries, such as communications industries, can be in responding to the realities of modern life.

The telephone charge areas were instituted in 1956. At that time outside Dublin and the main urban centres the telephone service was operated manually. Telephones were few and far between. September marked the tenth anniversary of the introduction of an automatic telephone service in Corr na Mona where I live.

There was a direct link between the cost of making a telephone call and the distance of the call as one had to put it through a series of operators. The manual service was eventually phased out in the first half of 1987. Since then all calls have been made through an automatic system.

Dramatic changes have also taken place in the methods by which telephone calls are transmitted from single lines running on poles along railway lines and roads to microwave links over which the vast number of calls, particularly long distance calls, are now transmitted. Single cables can now carry a large number of telephone lines and calls.

The number, weight and cost of transmitting cables is, in absolute terms, decreasing rapidly with the development of technology, particularly through advances such as fibre-optics. Even in rural areas they no longer connect a cable in isolated farm houses, rather two small aerials are erected. Everything has changed, except the charging system. Some changes have occurred in the past ten years in the charging system but we are still operating a system which is based largely on charge groups and distance rather than on the cost to the provider of each individual call. There is a huge difference between the number of subscribers in each district with some areas having as few as 10,000 subscribers and Dublin city having in excess of half a million subscribers available at a local call charge.

The position currently is that in most counties a call to the county town from certain areas of the county is a trunk call. The huge difference in the cost to the subscriber living in different areas is apparent if one analyses the relative costs of making a telephone call in different areas. For example, a telephone call from Galway to Ballinasloe, or from Ballinasloe to Galway, is up to three times dearer during the day, and nine times dearer at night, than a local call. Similarly, a long distance trunk call from, say, Dublin to Galway or from Galway to Limerick is up to five times dearer during the day and can be up to 18 times dearer at night than a local call. That is ridiculous when there is no extra cost for these calls to Telecom Éireann when the infrastructure is in place.

I referred to multiples of three, five and 18 but it is interesting to compare that to the price difference between placing a call from Galway to Limerick, for example, and the cost of a call from Galway to London. Whereas during the day a call from Galway to Limerick is up to five times dearer than a local call, the call from Galway to London is only 1.3 times dearer than the call from Galway to Limerick. At night, the call from Galway to Limerick can be up to 18 times dearer than a local call, depending on the duration of the call, whereas it is only 1.6 times dearer to ring London than it would be to ring Limerick from Galway. That is extraordinary. Obviously competition has affected international calls but Telecom can continue to milk subscribers for the local trunk calls.

We must move towards a uniform cost structure irrespective of where one is calling to or from in the country. This structure would be in line with the way subscribers are currently charged for Eircell services and the weekend service. The first step in this direction would be the elimination of the A rate trunk call and the incorporation of the existing A rate areas into local call areas. This would sort out the Ballinasloe to Galway problem, etc. At the same time the B rate trunk call could be reduced to an A rate trunk call. There should then be a fixed time limit on a programme eliminating all trunk rates within the State and the whole State should become one call charge area.

Another issue of great importance is that all areas in the country be given equal access to all telecommunications services as they develop. This relates to the provision of Eircell services and other cellular phone services throughout the State, as well as the provision of ISDN lines, etc. It should be a firm policy of the Government that all telecommunication providers would have to service the entire State, without exception, on an equal service basis. Anything else will only further stunt the growth of rural areas and add to the problems we already have in relation to imbalance of population. Beidh mé ag súil le freagra dearfach ón Aire, agus tá mé cinnte go dtuigean sé an cheist.

I assure the Deputy that the social and economic importance of ensuring access for peripheral regions to efficient and competitive telecommunications services is without question. Ireland is itself a peripheral economy within the EU and, therefore, a high quality advanced telecommunications service for the whole country is essential if the Irish economy is to achieve its objectives of economic development and job creation. To this end, the Government is fully committed to achieving the target that has been set of a telecommunications sector in Ireland which is in the top 25 per cent of OECD comparisons in terms of price, quality and range of services.

The telecommunications infrastructure provided by Telecom Éireann throughout this country is already considered to be well advanced and, as it stands, is in the top 25 per cent of European telecommunications comparisons. For instance, 80 per cent of the telephone exchanges in the country are operated using digital technology. Over the next four to five years, further investment of approximately £200 million per year will be made in the network as part of Telecom Éireann's ongoing capital investment programme to provide customers nationwide with an advanced telecommunications service which is both efficient and competitive. This will involve the continuation of the roll out of fibre optic cable and ISDN, Integrated Services Digital Network, to which the Deputy referred; further digitalisation of exchanges throughout the country with an overall target of complete digitalisation by the year 2000; and the further extension of the GSM mobile coverage.

These improvements are being introduced nationwide and many of the country's peripheral regions such as the Border areas and the offshore islands are already benefiting from access to a range of advanced services as a result of Telecom Éireann's capital expenditure programme. Telecom Éireann's objectives are that all local exchanges will have access to ISDN within the next two to three years and that there will be fibre optic connections to all main towns in the country by the year 2000.

EU Structural Funding mechanisms are also contributing to the accelerated development of telecommunications infrastructure and services, particularly in peripheral regions. The INTERREG Programme, which is administered by the EU, runs from 1994-99 and provides funding to improve infrastructure in Border areas. In January 1996, approval was granted to Telecom Éireann for EU assistance for a number of projects under the INTERREG Programme. These projects involve investments totalling £16 million in fibre optic cabling and exchange replacement in the Border area. Eight million pounds of the total investment is being provided by the EU.

The INTERREG Programme will accelerate the provision of new and upgraded infrastructure and services in Border areas. Telecom Éireann also receives funding for the development of telecommunications infrastructure nationwide under the Economic Infrastructure Operational Programme (EIOP). This provides for investment by Telecom Éireann of approximately £55 million with about 50 per cent of this being provided by the European Regional Development Fund.

Telecom Éireann's policy is to approach the development of the network on a national level, on the basis that the telecommunications network is an integrated system and that investments or improvements in any given area of the network will improve the network as a whole and therefore improve the services available to all customers, irrespective of their location in the country.

Business customers in particular require a high level of advanced telecommunications services and over the past number of years Telecom Éireann, working closely with the IDA, has been instrumental in attracting over 30 foreign companies to locate in Ireland. Indeed, a number of high technology companies dependent on a high quality, advanced and efficient telecommunications service have located in the peripheral counties of the Border region.

KPN and Telia, the two partners in the consortium chosen recently by the Government as the strategic partner for Telecom Éireann, are among the world leaders in terms of quality and efficiency. I am confident that customers throughout the country will benefit in the near future from higher quality basic services delivered more efficiently and will be able to avail of more and more new services as telecommunications technology evolves. Business customers will benefit from a wider range of advanced services, particularly international services, through the consortium's involvement with Unisource and Uniworld. The provision of a wider range of advanced services will enable Ireland to continue to develop as a successful base for high technology industry.

At EU level, the Department of Transport, Energy and Communications is also involved in helping to shape EU policies on those telecommunications issues which have the greatest effect on peripheral regions. Principal among these are those measures connected with the concept of universal service. Simply put, universal service in telecommunications refers to the provision of basis telecommunications services to all users at an affordable price — the Deputy mentioned costs. This means guaranteeing citizens access at an affordable price to a voice telephony service over a line allowing them to use fax or to hook up to a computer. It also means that users must be offered operator assistance, emergency and directory inquiry services and that public pay phones are widely available.

The concept has been the subject of continuous debate and consultation since the Commission first put forward its proposal for complete liberalisation of the sector in 1992. All sides are agreed, however, that liberalisation must be accompanied by the guarantee of a universal service.

In our Presidency role we have the opportunity of having a large influence on the progress of the measures connected with universal service which are now on the table for discussion and were a matter for discussion at the Telecommunications Council meeting I attended last Friday. These include the draft Interconnection Directive, which contains proposals on the costing and funding of the universal service, and the recent draft adaptation of the Open Network Provision, or ONP, Voice Telephony Directive which addresses the key issues of scope, quality and affordability of telephone services.

I assure the House that we aim to achieve as much progress as possible over the next three months in copper-fastening this guarantee of a minimum level of service available to all citizens at an affordable price no matter where they live.

Ensuring the development of a high quality telecommunications sector in Ireland that is efficient, competitive and accessible to all customers, irrespective of their location, is one of the Government's top priorities in the context of the economic and social development of the country. I thank the Deputy for his interest.

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