Denis Naughten
Question:33 Mr. Naughten asked the Minister for Public Enterprise the measures she will introduce to address the broadband deficit in the country; and if she will make a statement on the matter. [29889/01]
Priority Questions. - Broadband Communications.
The provision of telecommunications services, including broadband services, is a matter in the first instance for the companies. My responsibility is for public policy in the sector within which these companies operate. The widest possible availability of competitive services has traditionally been an important objective of telecommunications policy. Various initiatives have taken place under the National Development Plan 1994-1999. A sum of 26 million or £20 million was made available to support the roll-out of broadband to the regions. Thirteen projects which rolled out broadband nationwide were supported and are now nearing completion. Under the National Development Plan 2000-2006, £157 million has been allocated to promote and co-fund further roll-outs in rural and underdeveloped areas.
Nine contracts worth £44 million were signed with five companies in early 2001 and a second call for proposals is now being considered. A total of 31 proposals have been received, 20 of which are applications made by local authorities or public bodies. The other 11 are from private sector companies. The deadline for receipt of expressions of interest in an Atlantic broadband corridor was 31 October 2001. My officials are currently evaluating the expressions of interest received.
Additional informationAlthough SMEs were not specifically targeted under the call for proposals, local authorities and communications companies were encouraged to consult all local businesses and organisations before making a project proposal to ascertain their communications requirements. My Department also announced a call for proposals for pilot trials of VSAT (very small aperture terminals) satellite terminals to deliver broadband access in a number of diverse user communities around the country. This closed at the end of August 2000.
The aims of the pilot project were to test the deployment of VSAT technology as a means for providing broadband access to serve diverse types of users such as educational establishments, the agriculture sector, SMEs and Gaeltacht regions and to assess the feasibility of providing broadband infrastructure to remote communities using VSAT technology. Contracts were signed with three organisations. With the assistance of grants awarded by the Department of Public Enterprise these groups are working to install and maintain 87 VSAT terminals to provide high-speed Internet access to schools, libraries, small businesses and community centres throughout Ireland.
In an additional initiative a study was undertaken on behalf of my Department to consider options for addressing certain communications infrastructure gaps throughout the country and to promote competition and reduce the price of broadband services to business and residential users in the west. On foot of this study I sought expressions of interest in designing, building, operating and managing a seamless, world class, high speed telecommunications network linking the north-west to the south-west with inter-connectivity to existing national networks.
I presume I am the only Member allowed to speak, but there has been quite an amount of interruption from the Gallery throughout Question Time.
A few weeks ago the OECD produced a report that declared that Ireland was ranked 27th out of the 30 participating countries in terms of broadband infrastructural development. It was ahead of only Greece, Turkey and the Slovak Republic. In the first half of this year no commercial high-speed Internet access services were provided in this country. Is the allegedly high speed of ISDN, which is not as high-speed as has been advertised by Eircom, not really a slow speed? How stands the local loop unbundling?
The Deputy is getting poetic. On 23 December 2000, on which I would have been better occupied making Christmas puddings here, I was in Brussels and I signed up for local loop unbundling, as did the representatives of every other country. I was metaphorically beaten over the head by telecommunications companies. If they got this, the world was rosy. They got it and they have done nothing with it. I do not roll out local loop unbundling. The telecoms regulator, Etain Doyle, is now responsible. I understand that the companies are currently in contention with the regulator about various aspects of her proposed pricing regime.
With regard to the OECD study, I draw the Deputy's attention to a recent European study which ranked Ireland's the best Government in Europe. One can take one's pick from surveys. I hope our political surveys do not turn out the same way. I will send the Deputy a copy. I have read the other one too, but this one, which was printed in The Irish Times last Friday, states that Ireland is the best country in Europe in terms of advances in broadband technology. The Deputy has his survey and I have mine.
The Minister stated in her initial reply that the provision of broadband services is a matter for the companies involved.
We are giving them the money, of course.
It is also a matter for the State. At present NTL has not yet launched its DSL service and Eircom's is by far the most expensive service in the 30 OECD countries. It is not just a matter for private companies. The State should take an active role in the provision of this infrastructure, as has happened in Sweden and New Zealand.
I will put forward a proposal for the Minister's consideration. Along with the Atlantic broadband corridor and a possible corridor from Belfast to Cork, the use of the CIE signalling network, which also uses fibre-optic cable, could be considered as a State service.
I certainly do not intend to use the CIE signalling network. It can be left to other people to deal with if they want to. There have been enough difficulties in that regard. I accept, and so does the regulator, that the prices or costings put forward by Eircom are extremely high and it would be difficult for any but large companies—
Did the regulator not approve those?
I do not deal with the regulator's pricing regime. It is not my business. Deputy Naughten said that the State should be contributing funds. We have made a change in the roll-out for 19 October which will be announced before Christmas and we are giving 90% grant aid, which is an increase from the previous 55% or 60%. We believe that the county councils and public bodies who have made most of the applications – they are being vetted by an outside group – are highly developmental.