Dáil Éireann debate -
Wednesday, 3 Jun 1998

Vol. 491 No. 6

Written Answers. - Cablelink Sale.

Michael D. Higgins

Question:

30 Mr. M. Higgins asked the Minister for Public Enterprise the considerations of public policy which led her to seek Government insistence on the sale of Cablelink before any Government decision on the delivery of digitalisation; if evaluations of the worth of Cablelink were carried out in her Department; and if these evaluations took into account Cablelink as it currently operates or as it might develop in the short-term in view of the technological changes now under way. [12870/98]

Enda Kenny

Question:

41 Mr. Kenny asked the Minister for Public Enterprise the discussion, if any, she had with the telecommunications and broadcasting regulator prior to the decision to sell Cablelink; and if she will make a statement on the matter. [10910/98]

Minister for Public Enterprise (Mrs. O'Rourke)

I propose to take Questions Nos. 30 and 41 together.

The issue of Government insisting on the sale of Cablelink did not arise. The Government is committed to the continuing development of competitive multi-media and telecommunications sectors, since they are key factors in sustaining the development of the Irish economy. The Forfás report entitled Broadband Telecommunications Investment in Ireland, published on 18 March 1998, called for "an early sell-off of Cablelink to a company that would invest significantly in its development for the provision of broadband". The prime consideration in the sale of Cablelink is to ensure the upgrading of its network to enable it to become an important provider of a range of advanced multi-media services including digital television, internet, telephony and value added services such as data service, messaging, video on demand, video conferencing and interactive services such as home shopping and home banking. Accordingly, the intention is that the sale should entail a commitment by the purchaser to upgrade the Cablelink network to a state of the art multi-media platform.

A steering group has been established representing all the interests involved to manange the sale process. This group is chaired by my Department and also comprised representatives from the Department of Finance, Enterprise, Trade and Employment and Arts, Heritage, Gaeltacht and the Islands, KPN/Telia — the strategic partners in Telecom Éireann — Telecom Éireann and RTE. This Group is arranging for the full disposal of Telecom Éireann's and RTE's shareholdings in Cablelink through a trade sale process.

The sale of Cablelink Ltd. requires expert consultants to advise and assist in relation to the sale and EU public procurement procedures are being followed in this regard. A notice inviting advisers to tender for this consultancy work appeared in the national newspapers on 20 May and in the Official Journal of the European Communities on 27 May. Only a preliminary desk assessment has been made by my Department in relation to a valuation of Cablelink but a detailed valuation will be carried out by the advisers over the coming months. It is planned to have advisers appointed by end July, 1998 and to have the sale process completed by the end of the year.

While I have had no discussions with the Director of Telecommunications Regulation in relation to the decision to sell Cablelink, a number of licensing issues require clarification and are being addressed by my officials with the director's office in advance of the sale. In addition, the policy with regard to the options for the transmission of digital TV services will require clarification in advance of any sale. The Director of Telecommunications Regulation commissioned National Economic Research Associates in August 1997 to carry out a study on future options for the delivery of television services. The report was completed in March of this year and the director initiated a public consultation process so as to inform her views on the key issues involved. Comments from interested parties were requested by 21 April 1998 and I understand the director plans to consult with me in the matter in the coming weeks. I will then be in touch with my colleague, the Minister for Arts, Heritage, Gaeltacht and the Islands, who has a specific responsibility for digital terrestrial television.