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Dáil Éireann debate -
Tuesday, 7 Oct 2003

Vol. 571 No. 4

Written Answers. - International Telecommunications Services.

Brian O'Shea

Question:

150 Mr. O'Shea asked the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the recent report from the International Telecommunications Union that ranked Ireland 51st in terms of broadband penetration in developed countries; and if he will make a statement on the matter. [22059/03]

The telecommunications sector in Ireland is fully liberalised, with private companies offering services under the regulation of the Commission for Communications Regulation, ComReg. My Department has overall responsibility for telecommunications policy. With regard to broadband uptake in Ireland, this will be determined by the relative factors of supply and demand.

With regard to supply, there are a number of competing technological platforms for delivery of broadband in Ireland, including fibre, cable, satellite, digital subscriber lines and wireless, including wireless local area networks. While in the main it is expected that private sector investment will lead to the deployment of these platforms throughout Ireland, under the e-commerce and communications measure of the National Development Programme 2000-06 an indicative €200 million has been set aside for telecommunications infrastructural developments in areas where private sector investment is lacking. To date this investment, which is part-funded by the European Regional Development Fund, has supported a comprehensive programme of development, including metropolitan area fibre networks, new national fibre trunk lines, and extension of digital subscriber lines to 1.2 million telephone lines by mid-2004.

With regard to demand, it is quite evident that there is latent demand from both consumer and business for broadband services. Evidence of this includes: the EU Flash Barometer report places residential Internet penetration in Ireland at fourth in the EU, with the predominant method of home Internet access by standard telephone line – 91% – followed by ISDN – 6%; and Internet penetration among SMEs is running at 84%, with ISDN as the predominant access technology, followed by standard telephone line, leased line and digital subscriber line.

Turning this latent demand into high broadband uptake figures requires competitive pricing by service providers. Recent developments, particularly in the DSL market, demonstrate that companies understand this dynamic, and are, as a consequence, lowering the price to consumers and businesses.

It should be pointed out that the figures taken from the ITU report relate to broadband uptake in 2002. Developments in the Irish market during the course of 2003 would suggest that broadband penetration is now increasing rapidly, and I have no doubt that Ireland will be shown to have moved substantially further up the scale in any comparative study for the current year.

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