Vol. 558 No. 6
50 Mr. Sargent asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether an e-commerce industry can properly develop on the back of the expansion of existing DSL telecom technology; her further views on whether there is a need for more widespread availability of higher capacity fiber-optic based telecom systems. [22452/02]
Most firms, and in particular most small firms, using e-commerce business techniques can develop quite well over the coming years on the basis of digital subscriber line or DSL broadband technology which uses the existing telecom copper cabling to subscribers. The bandwidth needed by businesses varies. It is not uniform. Where higher data capacities are needed such as by large firms or projects requiring intensive Internet use, high capacity leased lines can normally be provided as required by the telecommunications firms. The current roll-out of DSL will enable many businesses and consumers to upgrade their current narrowband and ISDN connections to broadband. From the industrial strategy and competitiveness viewpoints, the primary challenge at this point is to ensure that Irish firms and investment locations have a broadband option such as DSL.
In an ideal world, broadband services would be delivered on fully optical networks designed to meet demand and capacity needs well into the future. The advantage in access speed that optical has over broadband using existing copper-wire connections would create efficiency gains and help in attracting investment. While most of our network is already fibre-based and is expected to evolve more fully over the next decade in that direction, we also must remember that the cost of rolling-out any form of broadband is substantial and upgrading from copper obliges the firms in this privatised sector to weigh the business case for doing so, including the digging up of roads or the putting up of masts.
Because this Government is determined to ensure that Ireland retains the capacity to attract a high volume of foreign direct investment, the country needs to move progressively into higher value activities as Ireland is no longer a low wage economy. The availability of broadband such as DSL or optical fibre is now of key importance in this regard. The Government has taken a number of measures to address this issue. In March 2001, we announced a regional broadband programme under the 2000-06 national development plan which will deliver fibre optic networks in key centres regionally. This is being conducted in association with local and regional authorities, with 90% funding from the Exchequer. This initiative is aimed at addressing the Government's medium term aim of having broadband speeds of five megabits to the home and substantially higher for business users. Construction on phase one of the initiatives will begin shortly.
In an earlier round of national development plan funding, Government assisted the development of a new national fibre-backbone owned by the ESB, and the roll-out of DSL services by both Eircom and Esat.
