JOINT COMMITTEE ON COMMUNICATIONS, ENERGY AND NATURAL RESOURCES debate -
Wednesday, 14 Jan 2009

Role and Functions: Discussion with Commission for Communications Regulation.

Chairman

I welcome Mr. John Doherty, chairman, Mr. Mike Byrne, commissioner, and Mr. Alex Chisholm, commissioner, ComReg. The committee has agreed to invite representatives from ComReg to give an overview of its operations to date.

I draw attention to the fact that while members of the joint committee have absolute privilege, the same privilege does not extend to witnesses appearing before the committee. The committee cannot guarantee any level of privilege to witnesses. Under salient rulings of the Chair, members should not comment on, criticise or make charges against a person outside of the Houses or an official, either by name or in such a way as to make him or her identifiable.

I call Mr. Doherty to make his presentation.

Mr. John Doherty

On behalf of ComReg, I thank the Chairman and the committee for the invitation to appear. I have put together a set of slides but I understand the IT system is not functioning and, therefore, if I could point to the slides as I proceed, I would appreciate it. I will provide an overview of ComReg's role and functions. I will give an overview of the market we regulate at the same time to give a context and I will then focus on three of the key areas we cluster our activities around — competition, spectrum and innovation and consumers — before outlining some conclusions and key areas to address.

The first slide gives an overview of the organisation. ComReg was established in 2002 to replace the ODTR. It moved from a single director to a commission and the three of us are present. The objective of the new legislation in 2002 was to establish an organisation with clear statutory goals to promote the following: competition; the effective use of spectrum; investment and innovation; the development of the postal sector; most important, the interest of end users; and protect and inform consumers. The legal basis under which we operate is set out primarily in EU law but also in national legislation. ComReg is fully funded by the industry and receives no subvention from Government. Since liberalisation, the organisation has remitted more than €260 million as a surplus to the Department of Finance.

We are a results orientated organisation, which in 2008 published more than 90 separate documents, including 30 public consultations. We publish an extensive and detailed work programme each year on our website. Our staff comprises engineers, economists, accountants, analysts, more than 85% of whom have third or fourth level qualifications. The objective of the various work streams we undertake is the need for a diverse and competitive communications sector, which is required by business and consumers alike. In addition to the regulation of electronic and postal communications, ComReg has over the past 18 months taken over responsibility for regulating the .ie domain and the emergency call answering service and, in early 2009, we will take over responsibility for the regulation of premium rate services, which was previously handled by Regtel.

I refer to the next slide, which gives a context to the area in which we operate. The industry in Ireland, which comprises postal and electronic communications, has an annual turnover of €5 billion. A total of 50 players are active in the electronic communications sector. Over the past four years average investment by the industry was €700 million. Revenues increased annually over the past ten years but, in 2009, it is possible they will fall, largely to do with the economic environment in which we operate. There has been a significant increase in multiple technology platforms. Traditionally we had the incumbent operator owned by the State whereas today mobile, fixed wireless and cable operators compete in the electronic communications space. One of the holy grails of the industry is so-called convergence, which was debated for a decade but consumers can now benefit from multiple options in the platforms and technologies they use. The next big paradigm switch is the advent of next generation networks, NGNs, in the fixed, mobile and cable areas, which will radically change the industry going forward.

The next slide provides an overall perspective of the electronic communications sector, which turns over approximately €4.4 billion a year. This represents 2.3% of GDP, of which the fixed line element provides 52%, mobile approximately 44%, and broadcasting 4%. The graph illustrates it has increased over time. The following slide outlines communications pricing. It demonstrates the divergence between the cost of all items with the base being 1997 at the point of liberalisation and the significant reduction in the cost of communications services driven by technology and efficiency. Driving competition through regulation has ensured the benefits of lower prices have flowed through to the consumer. We conduct surveys of the marketplace on a continual basis. Our survey of the fixed line basket, for instance, in the Irish market, shows prices falling annually from €102 in 2004 to €93 in 2008. In the mobile sector, the prices over the four-year period have not fallen consistently but they have fallen significantly over the past year from approximately €53 to €45. This illustrates the benefits of regulation, technology and, particularly, competition have flowed through to the consumer.

I refer to the positional aspect. The other slides only examine Ireland and look at it a little in the abstract. This slide gives an international context to Ireland's pricing. The international pricing basket in August 2008 shows, for instance, that Ireland is in second place in Europe for the cost of a three-minute international call. The next slide refers to the national pricing baskets, which includes calls to mobile and line rental for which Ireland is in sixth and tenth positions, respectively. This demonstrates that on an international comparison basis, Ireland remains competitive in telecommunications because clearly the lifeblood for industry and consumers is to ensure we have a diverse telecommunications sector in operation.

The following slide deals with the fixed voice market between 2006 and 2008. Eircom's market share fell by 5%, which highlights again the benefits of competition and the fact that consumers have more choice, through which they can shop around and achieve better prices.

The next slide addresses mobile subscriptions and highlights a dramatic change. When ComReg was established in December 2002, 94% of the market was provided by two players, Vodafone and O2. In the period between 2003 and today those market shares have changed radically. Clearly, there are more competition options out there but the market share of those two players has fallen from 96% through 94% to 74%. The market share of Meteor, for example, has grown to almost 20%. We see the basis of an increasingly competitive market. We also have, for the first time, mobile virtual network operators, MVNOs, operating in the marketplace. It is unusual for a population of our size to have four full-blown network operators. We currently have one mobile virtual network operator in the marketplace. Members may have seen announcements before Christmas that An Post is joining that suite of MVNOs in 2009. For the size of the market, we have an increasingly competitive marketplace. There is, clearly, more to be done.

The next slide signals one of the clear areas of success in this sector. When we started out in broadband development in 2002, there was one player, who was providing broadband at €100 per month. Not surprisingly, it had 3,000 customers. The slide covers approximately 20 current players in the broadband space. Today, one can get prices ranging from €8 to €10 for broadband packages. Increasingly, these companies are providing higher speeds. Part of the current Eircom package is up to 20 megs, with a more general package offering between 3 and 6 megs.

The next slide illustrates the distribution of the broadband Internet market. There is a good distribution of the different platforms. The existence of different platforms providing services is a key ingredient of a competitive marketplace. It is interesting to see that mobile broadband has grown by more than 200% in the last year and now represents almost 300,000 customers. Eircom's share of the retail broadband market is now below 40%. That is a significant development. In 2002, Eircom's share was almost 100% of the market. This has come about largely because we took a number of initiatives, particularly in the spectrum area, to drive competition. This slide shows that the total market, including mobile broadband, is now €1.12 million. We have come up very significantly.

The next graph shows that we are now almost at the 20% level compared with other EU countries. With developments in enhanced competition and choice and the national broadband scheme, we expect that this growth will continue and that Ireland will continue to move up this table. More importantly, the emphasis will shift to the quality and speed of broadband rather than the supply.

The last of the market review slides looks at broadcasting. In the last year, the cable/MMDS area has fallen back by 15% while satellite services have grown by almost 10%. This slide gives a picture in time of what is happening in the broadcasting market.

The final slides deal with ComReg's key initiative areas. I will deal with competition, Mr. Mike Byrne will deal with spectrum and innovation, and Mr. Alex Chisholm will deal with consumer initiatives.

I have touched on a number of competition issues already. To underpin the competitive marketplace we must have continually enhanced competition. Much of the work of ComReg is focused on ensuring that there are appropriate wholesale product offerings in the marketplace, particularly products involving local loop unbundling, which facilitates companies accessing Eircom's exchange and providing a suite of services directly to their customers. We have spent much time in 2008 trying to ensure that the product is fit for purpose and that pricing and the various elements that make up the product facilitate a good business model. We are focused on local loop unbundling because it has been a key driver of broadband in other markets. It has also been seen as a strong precursor to investment in next generation access networks. We see it as part of the ingredient mix which we need in this marketplace.

In the mobile marketplace, we have focused on trying to get more operators into the marketplace, lowering the barriers to entry and supporting the introduction of MVNO access. By the end of this year we will have two MVNO players. We have also sought to reduce mobile termination rates and porting costs in a way which facilitates new entrants to establish a better business model. Cable has become a significant player in the broadband space and currently has approximately 100,000 customers.

I will ask Mr. Mike Byrne to take up the issue of spectrum and innovation.

Mr. Mike Byrne

I characterise radio spectrum as a resource. It is as valuable as any other natural resource and should be looked at in that context. This is a very technical area but I will try to de-jargonise our role.

We are the body responsible for the regulation of Ireland's radio spectrum. It is a resource of tremendous economic, social and cultural value. Radio spectrum, as members will know, is the basis for many important services such as broadcasting, mobile telecommunications, wireless broadband, navigation, public safety, the Garda and the Defence Forces. Numerous sectors of Irish society depend on radio spectrum. Part of our work is to look at where the needs are and to supply radio spectrum to support those needs. In these financially difficult times, the efficient use of radio spectrum and the maximisation of its potential value is and should be a key concern for policy makers and the regulators charged with the responsibility of its management.

Our data, which we have tracked over a number of years, shows that the wireless communication sector plays a very important role in Ireland's economic life. We estimate that approximately 30,000 people are directly employed in radio spectrum. They are employed in mobile companies, manufacturers of equipment used by mobile companies, transportation, the merchant marine, aviation and so on. That is a conservative estimate. Our most recent figures, which are for 2006, show its contribution to GDP as €3 billion per annum, or 1.67% of GDP. It is a very significant resource.

During the past year, ComReg consulted on and published a spectrum strategy for 2008 to 2010. I believe members have copies of that document. This strategy is like a runway of bands of spectrum which we are currently making available to the marketplace, as well as those already available and those we intend to make available. For example, a public consultation on the release of spectrum for mobile TV is currently coming to a conclusion. A different example is the opening up of the GSM band, which most of us use for mobile phones, and making it available for 3G services. This is critically important to a country like Ireland. While almost 40% of our population live in the greater Dublin area, another 40% live in very rural locations. Radio spectrum must be part of the solution.

There are a number of other examples but I will cite a final one. We recently completed a competition to release higher capacity radio spectrum which can be used for back haul, particularly for mobile networks. This is a direct competition to the incumbent's fixed line backhaul services. It is using radio spectrum in an innovative way to help promote competition.

Ireland is uniquely positioned for the availability of radio spectrum. We are an island nation and we do not have to co-ordinate as extensively as some landlocked countries. We have an excellent ongoing operational contact with our neighbours in Ofcom. Given our historic low use of military spectrum we have available an abundance of radio spectrum. Part of our strategy involves rolling that out.

The third part of the link is our low corporate tax rate. As a result of the mix of availability of radio spectrum, a strong industry has now grown up in Ireland during the past 25 years or so in terms of the use of radio spectrum, through the growth in mobile network operators here, the suppliers of equipment in Ireland including Ericsson and Motorola, who have been in Ireland for quite some time, and the universities and work that third level institutions are doing. Members may be familiar with work in this regard in their local areas. I mention in particular Waterford Institute of Technology, Trinity College, Dublin, and UCD Maynooth who are developing significant expertise in innovation and research and development in the use of radio spectrum and are commercialising these ideas. That is important for the future well-being of Ireland. ComReg has a role to play in this regard.

In recent years we have redeveloped our test and trial licensing scheme, which is genuinely recognised as one of the best in the world. Chris Horan in his article on innovation in last Monday's edition of The Irish Times referenced ComReg’s test and trial licensing scheme in that context. People from South Korea, China and Japan, some of the most innovative countries in the world in this regard, have come here to see our test and trial licensing scheme.

On the agenda for the trade mission to Japan is the signing of a Memorandum of Understanding with the Japanese Ministry of Information and Communication to develop new services and technologies using Ireland's radio spectrum in Ireland. It is an MOU to further develop the use of radio spectrum in Ireland. This is extremely important to our economy. ComReg is conscious of its role to push radio spectrum out and to make it available to new entrants, operators, universities and so on.

Members may be familiar with some of the other initiatives, including the role of digital terrestrial television on which we are working with the Department of Communications, Energy and Natural Resources, RTE and the Broadcasting Commission of Ireland. Our role in this regard is first to supply the radio spectrum and second to co-ordinate the various channels with our counterparts and Ofcom in the UK.

As we move from analog to digital broadcasting, which is more efficient, one is left with what is called " a digital dividend." This digital dividend is a once in a lifetime opportunity to be used for the provision of services and applications to consumers and Irish citizens to help address some of the deficiencies in other platforms. The spectrum can be used for other services. It is important members are aware in terms of the significant revenue generated by the dividend for the US — the high profile UHF band auctions — that time has moved on. We are now dealing with different financial circumstances. There is probably less of an appetite among a number of the players to invest. However, we are dealing with extremely important radio spectrum that can be used for several different services.

On the digital dividend, Members will be aware that this area is of such critical importance we devoted our annual conference, held last October, to it. EU Commissioner Reding, the Minister and the director general of RTE spoke at that conference on the importance of maximising the benefit of digital dividend for Ireland. We intend in the next few weeks to publish a public consultation document in regard to the benefits of the digital dividend. We will issue this within the next two or three weeks. We can provide an additional brief to Members and the joint committee on this matter. I will now hand over to my colleague, Mr. Alex Chisholm, to make his contribution.

Mr. Alex Chisholm

It is worth emphasising that all of ComReg's work is ultimately in the interests of consumers. On the competition or innovation side, it is the consumer whose interests we have in mind. Our programme of work aims to address the needs of consumers. This issue can be considered under five main headings, as illustrated in the presentation.

It is tremendously important that ComReg as a regulator is able to push for improvements in the quality of services provided both in the telecoms and postal sectors. As in each case, we have a universal service provider who must provide services to everyone in the sector it is particularly important that the quality of their services is high. On Eircom, members may be aware that last May we issued mandatory new standards in respect of the quality and service it must provide to its customers in three particular areas. Having examined all areas of its service, we found that the main problems arose in respect of line installation, fault repairs and the overall number of faults occurring.

On line installation, we found that in some cases people were waiting for more than six months and this was completely unacceptable. A new mandatory standard of less than two weeks or, in the case of so-called soft switches, 24 hours has since been introduced. On fault repairs, we found that consumers were aggrieved at the length of time they had to wait for repairs to be made. Often, when people had agreed a time for an operator to call to their home, appointments were missed and they were required to wait a number of days for another appointment. We have put in a place a new target which provides that faults will be rectified within 48 hours and that where particular appointments are agreed with consumers more than 95% of same must be rectified within that agreed time. The third area is the overall level of faults. We found having examined the issue that the number of faults has been growing in recent years. Other countries have been able to reduce the occurrence of faults. We also matched this with the level of expenditure by Eircom, in its various ownerships, and found that it has been under-investing in the network. We have put in place new targets to reduce the number of faults per line over the next four years. It is worth emphasising that these are mandatory standards that can be enforced in the courts and are not discretionary or ideal values for Eircom.

We have also set targets for An Post. A target of 94% in respect of next day delivery, the most sensitive area, has been set. This target has been accepted by An Post and it is moving towards ensuring mail is received the day after it is dispatched though it still has a considerable distance to travel. The figure at the beginning of 2007 for next day delivery was 73%. The figure for the whole year was 78%, a rise of 5%. We do not yet have the data for the last quarter but we expect that figure will have increased by a further 2% to approximately 81% in 2008. An Post is moving in the right direction. However, it is possible it is not making sufficient progress. It gets harder as one goes further up the scale. We will keep up the pressure in this regard and will use powers recently given to us to enforce that on An Post.

As well as quality of service by the universal service providers, we must ensure that all operators throughout the sector we regulate are improving their quality of service. For this reason, we examined all the complaints and issues raised with us during the past year by consumers and found that the biggest issue related to billing. On closer inspection we found that problems tended to arise in regard to people being confused about how their bill was calculated, how much they were being charged, whether it differed from what they had been originally promised and what could they do to keep their bills as low was possible. To help this set of consumers, we introduced with Excellence Ireland Quality Association, a bill presentation standard. This was published in November. We will roll out this standard with the telecoms operators during the course of this year.

Another area of major concern to ComReg is how operators deal with complaints. There is some bad history in the telecoms sector and in An Post in terms of dealing with complaints. The progress made during recent years is insufficient. There is much road to travel. We have taken action in this regard. In the postal sector, we have introduced new standards for complaints handling and compensation procedures. This relates not only to the level of compensation but to customers' awareness in this regard. There is no point having a compensation procedure if people are not aware of it. It was introduced during the first part of last year. We are working on a similar process for telecoms companies to ensure they have in place fully fit for purpose codes of practice and customer guarantee schemes, that they adhere to them and that customers are aware of them.

On the information side, we do significant work on the issue of information provision which is tremendously important in today's marketplace because there are over 50 communications providers, each of which has a large number of products, packages and special offers. Therefore, we are looking at thousands of potential ways to buy telecommunications equipment. It is a bit of a maze through which we try to provide a navigational guide. The easiest way to do this is through our price comparison site, callcosts.ie, which some committee members have seen demonstrated in Leinster House and we take it all around the country. On our other major website, askcomreg.ie, we deal more with queries. It had 600,000 visits last year, representing over 200,000 individual users. Therefore, a significant number of people are benefitting from the information we provide and using it to shop around for the best deals.

We do not rely only on websites, we also issue a number of guides. We have an outreach programme available to citizens throughout the country via information bureaus, libraries and events such as the ploughing championships and the ideal homes exhibition — any place we can find a decent number of consumers to whom we can describe the services we offer to help them buy communication services.

In our complex marketplace we occasionally come across cases of customers who are being mistreated or misled. As the regulator in this space, we are in a position to protect such consumers. One complaint concerns broadband speed. The particular issue was that people found that the speed was less than what they believed it would be. In advertising "red hot" or "lightening" speeds one gave an impression that was in excess of the actual speed of the product. We worked with the Advertising Standards Authority of Ireland and the Consumers Association of Ireland to develop a new code on advertising broadband speeds in order to protect consumers from misleading claims. The code has been in place since the early part of last year and effective in dampening excessive claims. We are also pushing to have speeds improved, which will happen through competition as described by Mr. Doherty. We are also working with operators on a best practice code.

As well as providing information, when consumers have complaints or issues, we hold their hands, so to speak, when they take them up with operators. The first port of call for the consumer is the operator, but if they are not happy with the result, they can come to us. Last year we helped some 3,000 consumers in this way.

We have a particular responsibility under the legislation to try to ensure all users in the community benefit. This applies, in particular, to people with disabilities, the elderly and those suffering disadvantage. One of our key initiatives in this regard has been the creation of a joint disability forum which we founded in conjunction with the National Disability Authority. The forum has been involved in a number of events and activities during the year. We had a particularly successful group of events focused on universal design, namely, the concept of building into the design of telecommunications services the needs of people with disability. This is something the industry representatives who attended took seriously and it will be useful to them in shaping their plans. We also distribute significant amounts of information geared towards meeting the needs of the elderly and the disabled.

Mr. John Doherty

We are trying to give the committee a clear picture of a dynamic industry that is critical to the economy. We can say with confidence that there has been demonstrable progress. However, that is not the same as saying everything is perfect. There is a range of historical and new issues which we must continue to address. The environment in which we will operate this year and in 2010 will be considerably more challenging than it has been for the past decade. We must attend, in particular, to areas such as quality of service for consumers and higher speed broadband. The Government's ambition under the national broadband scheme to provide ubiquitous broadband will move the debate away from availability per se to speed and quality. There are issues around equivalence of access for operators. ComReg will continue to engage in strong compliance activity to ensure operators receive the products and services they want when they want them and at the right prices.

Another matter of interest is investment. During the past four years or so approximately €700 million a year has been invested by the sector in Ireland. There is no doubt that this figure will face a considerable challenge in the next period. Most operators in Ireland are internationally owned and will be competing for investment with their counterparts across Europe and the world which will make life even more challenging. Mr. Byrne has touched on the fact that we have one great advantage in Ireland — the spectrum. We must ensure we maximise our advantages, both creatively and innovatively, to ensure we lead innovation and address some of the competition issues.

In the next period the key priorities for ComReg will be to try to ensure the investment climate is right for the deployment of the next generation networks. We need to plan and prepare for the advent of the digital dividend because it will provide, among other options, an opportunity to provide high speed broadband in rural locations. This is vital. On the innovation side, we are working with the IDA, Enterprise Ireland, the Department of Communications, Energy and Natural Resouces and others to try to ensure Ireland is seen as an innovation centre for wireless technologies. We will continue to do this and ensure spectrum is available, using initatives such as USO targets. The quality of standards Eircom was providing for its customers was not acceptable; therefore, rather than take the data being given, we set mandatory targets and will ensure they are met. Mr. Chisholm touched on the issue of billing standards.

We will have an input into the postal liberalisation process which provides Ireland with an opportunity to ensure both the business world and the consumer will have a competitive and forward looking postal service. I thank the committee for its time.

Chairman

I will now ask members to put their questions. I thank ComReg for its presentation. It is working in an ever-changing environment. I agree we are heading into challenging times and would like to hear the delegates' views on two issues. We have four main players in the mobile phone market. Does ComReg see a further decrease in charges for consumers as a result? Eircom has changed ownership a number of times in the past four or five years, but does that create problems for ComReg or consumers, as Eircom is the only fixed line provider in the country? The Australian owners of the company appear to be having difficulties. How does ComReg see itself dealing with the matter?

I am aware that one of the main complaints with regard to facilities is that in rural areas individuals cannot receive a proper broadband service. They are told by Eircom and others that it is not financially viable to upgrade their exchanges to provide such a service.

Deputy Liz McManus

I thank the delegates for coming here today. As the Chairman has said, we are entering very difficult economic times and obviously the development of telecommunications will, if anything, become more important for our future. I wish the witnesses well.

Generally speaking the role of ComReg has been extremely important in ensuring there is a regulated market. I also wish to reinforce the point about the future of Eircom. Everybody is agreed that the past has been pretty disastrous. Perhaps the witnesses might comment on what might be the best approach to be more innovative in the future. It is of concern that again different owners will be dealing with a major player — the key player still — in the market.

Recently we completed Committee Stage of the Broadcasting Bill. It seemed to me that it would have been worth considering having the broadcasting authority and ComReg as one body. I ask the witnesses to comment on that proposal. I did suggest it, but it did not have any purchase from the Minister's point of view. It seems logical given that much of what the witnesses have covered, particularly what Mr. Byrne covered, relates to areas in broadcasting that I would have thought require very close co-operation and integration.

I appreciate that the witnesses started with the good news about the reduction in costs, which I hope will continue. However, they itemised major problems with customer service. It is noteworthy that in the recent "Prime Time" programme I do not believe ComReg was mentioned and certainly was not represented on the programme. While it is only a gut instinct, I feel ComReg needs to have teeth. We all set standards, and have targets and codes of practice. However, at the end of the day people being driven quietly cracked because they cannot get somebody to answer the phone and end up listening to music while on hold is not the way modern Ireland is going to progress.

I would hope there could be a very swift and efficient way to deal with people who are ripping off the customer. As the witnesses have pointed out, ComReg is on the side of the customer. We need to consider how effective we can be in customer service and speed. I represent a constituency where the topography makes it quite difficult in certain parts. While one allows for that, I sometimes receive complaints from parts of the county where there should not be a problem. In one area on the N11 in north Wicklow people cannot get broadband, which is ludicrous. The excuse given to me was also ludicrous. Eircom being Eircom, people are denied a chance to have broadband, which in some cases has enormous impact on their ability to run their businesses. Quite apart from the access issue, does ComReg publish ongoing assessment of broadband speeds in different locations around the country? If not, perhaps it could consider doing so.

I was asked to raise this point, because most people have forgotten about it. There is a .ie domain registry report that ComReg commissioned but never published. I ask for an update on the matter.

The area of digital dividend is one of great opportunity. I am not clear how ComReg intends that to be managed. Presumably it will be the body managing it. I know the question has been asked as to why one person is not given the job to manage the entire roll-out of digital terrestrial television and ensure everything is on time. The shutdown will have a major impact on parts of the east coast if it is not managed properly. How does ComReg envisage the roll-out being managed?

I have a question relating to An Post. It is a good example of people trying to meet targets. ComReg has set targets, but frankly they cannot be met. They seem to be back-loaded. Each year we are told that the targets will be met in the following year and a big leap forward will be made. However, in reality that is unlikely to happen. I ask the witnesses to talk about that. Will we see postcodes introduced or do they not justify the major investment that would be required?

Deputy Noel J. Coonan

I welcome the delegates from ComReg and thank them for the presentation. I believe it was Mr. Chisholm who compared it to a maze through which one would need a navigational aid and I concur. I find the detail about the radio spectrum very technical. While the explanation has been helpful, we could do with considerably more explanation. I recognise the work done by Eircom has improved matters. However, many more improvements could be made to services.

We spoke at length this morning about broadband and I do not want to go back over it. When the service providers appeared before the committee, they brandished a big map showing all the areas in the country with broadband coverage, which was false and misleading. They told us that it was recognised by ComReg. There are specific areas that are not remote where it is not possible to get broadband. I come from a rural part of north Tipperary. We certainly would not describe certain areas that do not have access to broadband as being remote but it shows on this map. It is frustrating for businesses, particularly rural-based ones, to be told they can get broadband. However, they have tried provider after provider and still cannot get it. As the map is misleading I ask ComReg to correct it and make an announcement to the effect that it is misleading the public as to where broadband can be provided in rural areas.

There is another annoying aspect of broadband. MANs have been installed in provincial towns at considerable expense. They are sitting idle and we are told that the cost of connecting to them is prohibitive. Is that acceptable to ComReg or whoever is taking responsibility for it? This system is not functioning and has cost the taxpayers a considerable amount of money. How is ComReg going to deal with the cost of connecting to that system when people are crying out for a service?

Eircom advised us that a considerable number of its exchanges would be upgraded and as a result its service would be widely available to people. This is also misleading because the line is unable to take broadband beyond 2 km from that exchange and people cannot get it. It is a shame that in this day and age even a credit card will not work in rural areas at the end of an Eircom line. Eircom will admit that. Its representatives say, "We haven't got the money. We're not going to put in a new line. To hell with you and your business. You're not going to get that facility." What is ComReg's reaction to that kind of service to the general public in rural areas? I am sorry if I sound angry about this, but I am very passionate about it. People who have so much to offer this country in terms of employment are totally frustrated by a service that they are being told is there but that is not the case.

What is ComReg's role regarding roaming charges? The cost of phone calls has reduced to some extent. However, someone who uses a BlackBerry when away from home might not own his or her home on returning because of the size of some of the bills. What can ComReg do about that? What should we, as customers, do about it, apart from turning it off and throwing it away when going abroad?

There are many issues on which I could spend time but I will not do that as I wish to give other speakers a chance. In terms of key ComReg initiatives in 2008, reference was made to Eircom's line installation and repair faults. What is the situation with customers who have changed to another provider who discover a fault on the line? They will be told to get lost or they can do without a telephone for up to two months. Sometimes the telephone is repaired temporarily but then it breaks down again in a few weeks time. There is palpable frustration among the general public and that is another example of it. One can wait months for a telephone line to be installed in a rural area. That is the kind of service ComReg is standing over in 2009.

Regarding the 94% delivery target for services from An Post, does that include the service in rural areas where the post only comes half way and it is thrown into a box at the end of a road? Is it acceptable to ComReg that a customer in a provincial town or rural area, who generally receives his or her post between 3 p.m. and 5 p.m. in the day but who requires post in the morning, is charged if he or she wishes to pick it up at the post office? One is charged for the privilege of collecting one's post. Is that acceptable to ComReg?

I recognise and appreciate the work that is being done through some of the initiatives such as having consultations on the digital dividend and promising to brief people. I will leave it at that for the moment. There are a number of other pressing issues and if there is time I will return to them.

Deputy Michael D’Arcy

I wish to touch upon the MANs connections, which are a bit of a farce. The best way I can describe the MANs connections is that a motorway has been constructed but there is a toll of €150 to use it. Wexford town has approximately 12 connections. At some stage somebody has to intervene and say that it is pointless to spend public money on this infrastructure unless it becomes substantially cheaper for people, especially businesses, who would use it much more if the connection charge was viable. I am interested to hear ComReg's views on that.

I would also like to hear ComReg's views on the last phase, which I think was phase three, and how or why some towns were excluded. Towns were excluded on the arbitrary whim of the Department. I can give a good example from my county, Wexford. In Wexford there is one connection and that is in Wexford town. Gorey, Enniscorthy and New Ross have no connections, even though all three towns are bigger than some of the towns that were connected in phase two. Much smaller towns with fewer than 1,000 people were connected. That seems as arbitrary as can be. I would like to hear from ComReg how some towns can be connected with a fraction of the population of other towns.

I disagree with Mr. Doherty that the debate will be about quality rather than availability. The debate is about availability, especially in rural areas. A significantly increased number of people would work from home if they had access to broadband in any form. Quality is important but it is irrelevant when there is no availability. It is a case of the cart being put before the horse.

ComReg's figures indicate there are 270,000 mobile broadband connections. I have a mobile broadband connection but I do not have a broadband connection in my home. I have dial-up connection there, which is a bit of a farce. I would throw it away if I had a version of anything apart from the dial-up system that is probably ten or 12 years old at this stage. Thousands of households are similar to mine. What follows on from that is the digital dividend in terms of broadband coverage for rural areas. There is a public interest. I am sure there is a cost given that Eircom and the other companies are not going to do it. They are certainly not going to do it in the current economic climate.

Are figures available for the cost to the State of connecting rural areas to the broadband dividend? What would be the cost of putting a set-top box into most people's homes to provide television coverage? What would be the cost to the State or service providers to install some version of broadband? If this is a once-off gig then we cannot ignore it. Whatever the cost, all organisations, both political and statutory, will have to put their shoulders to the wheel. There is no point in saying we should have done that when terrestrial television went digital. The cost will determine whether it will work out. Does ComReg have the figures?

Deputy Joe McHugh

I also welcome the delegation. It is a good opportunity to discuss these relevant matters. In light of the Government's decision to keep the radio stations in Valentia and Malin Head, a commitment was made before Christmas that there would be investment in them and that they would be upgraded. ComReg has a role to play in terms of monitoring that situation. It is important that the required equipment is provided in accordance with the commitment that has been made. The people involved in both those stations are providing an excellent service not alone at a national level but an international level.

Perhaps I missed it in the presentation, but does the information include an OECD comparison for mobile telephone prices internationally?

Mr. John Doherty

No, but I would be delighted to send it on to the Deputy. We are competitive. We viewed this morning's meeting as an opportunity to provide a pen picture although we could have filled out our presentation with up to 300 slides. I did try to illustrate through our surveys that mobile pricing had fallen substantially, especially in the past year where we are down from €53 in 2004 to €45 in 2008.

Deputy Joe McHugh

It is important that we would have access to that information. According to the OECD chart figures we are proving to be competitive for fixed land line, residential and business.

To put things in perspective, I will use a practical example. I am pleased that two of the three gentlemen from ComReg emphasised that they would de-jargonise the jargon today. "De-jargonise" is a word for 2009. I note that they continue to use phrases such as "moving forward", which is absolutely cringeworthy at this stage. Everybody, including George Lee, is talking about moving forward. That piece of jargon needs to be thrown in the dustbin pretty soon.

I pay on average €400 per month for my mobile telephone usage. Some months it is €700 and other months it can be below €400. That is not even an average amount. I am bringing the figure down low. When multiplied over a ten-year period, which is the period in which I have been using a mobile telephone, one is talking about €48,000. As a politician I also have two land lines in two constituency offices and a home land line. Using a rough estimate I pay approximately €600 per month. When one works out communications costs over a ten-year period, not including broadband, I have paid approximately €120,000 over that period. That is the average. I accept that we get remunerated for the expenses.

If I owned a business in 1999 and was drawing up a business plan, would I have factored in mobile phone and land usage to the tune of €120,000? Is that a justifiable figure for a business when setting aside phone costs? I know businesses that use many more minutes and hours on the phone than I would as a politician. Are these prices justified when taking the interests of consumers into account? We should look at the thing in a European context and make international comparisons. Businesses in my neck of the woods are going to the wall and the main reasons are competitive costs.

Peers of mine working for top businesses abroad would be prepared to come back to Ireland if the proper broadband infrastructure was there. It is not there in places like Donegal. Efforts are being made to unbundle the loops around the exchanges, and there is adequate radio coverage through the group schemes introduced by the Government. However, there are still areas in which people are outside the radius of the exchanges and outside radio broadband. People involved in the international financial sector would be prepared to come home if the proper broadband was there. The new contract has been tendered, so will ComReg liaise closely with the contractor that has been provided? Are the witnesses confident that ComReg will be able to fill in these gaps in the broadband market?

Deputy Mattie McGrath

I welcome the representatives from ComReg. I will not repeat what has been said already. Some people in rural Ireland cannot even get a basic telephone line anymore, and some people from the outskirts of towns are told by Eircom that there is not the capacity to get a line. Following storms and so on, people can wait for up to eight weeks to get their lines repaired. They are simply told that this is the way it is.

The old Telecom Éireann had much pride in its facilities, whereas Eircom now has phone lines falling off poles around the country, and poles falling into ditches and so on. It is a sad situation and people want to get them moved. I know several constituents who got planning permission to build houses and when they find an Eircom pole across their entrance, they might as well call the North Pole rather than ask the company to fix it. The company is a law unto itself, and if it engages with anybody, it will give a price that the person could use to build an extension to his or her house. Eircom is not dealing with people, and I blame ComReg for this. Eircom and the other companies are treating the public with complete disdain. That has been allowed to happen by ComReg, and that is not acceptable.

An Post is a reasonable service, but I do not believe the centralisation of sorting to Portlaoise was a success. My area borders another county, and shortly after centralisation, An Post decided to change the postal district to County Waterford. That means post in our area comes one day later than usual.

Billing for mobile phones is very difficult for people to understand. That has been stated already here, so I will await the response of the witnesses. People are also concerned about phone masts, no matter what company puts them up. Why is there no insistence that these masts be colocated and shared between the companies? I am told that monitoring of these masts and their emissions by ComReg is almost non-existent. Is that the case? People have health concerns and these operators are making vast fortunes. They are not being properly monitored or supervised, which is outrageous.

Has ComReg any role in controlling "cyber-bullying" on phones? Does it have any role in introducing restrictions on access to the phones of young people?

Senator Joe O’Reilly

I thank the Chair and I welcome the gentleman from ComReg. I was struck by Mr. Doherty's claim that broadband could be available for as little as €8 to €10 per month. That is not my experience. From talking to people in my constituency, I would have thought it cost €30 to €40 per month for the service. That is a very prohibitive cost. Availability is a huge issue, and it is prohibitively expensive for many people to have broadband. There is a chicken and egg scenario here, because if more people availed of it, then the service would be cheaper. General costs on business here are enormous, but today's work is to talk about broadband and phone costs. Broadband costs are huge, and I wonder if enough is being done to bring them down. The information being fed to me is very different to Mr. Doherty's information.

I also empathise with the point made by Deputy Coonan about the map. I met a gentleman the other day from a community in an entirely rural area that is not remote at all, but the community is without broadband. I could privately list a number of communities that are without broadband. In spite of the map and the appearance of blanket coverage, it is not the reality. I would be interested to hear Mr. Doherty's remarks on this.

When the Broadcasting Bill when through the Seanad, a number of issues arose about RTE's radio coverage, in particular the availability of RTE on medium wave. Can Mr. Doherty comment on the lack of availability of RTE in certain parts of the south east, in parts of Northern Ireland and among the emigrant community in England?

From anecdotal evidence, I feel that there has been an improvement in the next day delivery service of An Post. I wrote to somebody in Kerry the other day, and I was amazed that the person responded the next day. I would be interested to know specifically how much this service has improved. It is crucial that there are no delays in this service. There were nightmare stories coming to us from different communities about delays of several days in deliveries, although I have not heard of many of them in recent times. The witnesses should comment on this issue.

I am interested in ComReg's preparations for postal liberalisation. I do not fully understand its role in this regard and seek the delegation's comments. While a different debate arises regarding ministerial and governmental involvement, it will be crucial to ensure that post is delivered to isolated places on the same basis as obtains at present and that the dictates of competition do not reduce the social service dimension of An Post's deliveries. This is critical and I could identify such areas and people. Under the Constitution, natural law and so on, such people have no less a right to their post than those on Grafton Street. I seek the delegation's response in this regard.

As for the question of mobile telephones, my personal experience matches that of everyone in public service, all of whom have enormous telephone bills. Nevertheless, although ComReg has stated that it has seen an improvement, the popular perception is that Ireland's mobile telephone bills are exorbitant and unreasonable and that not enough is happening in this regard. I await the witnesses' response to the question raised by Deputy Mattie McGrath regarding texting to young people, the games and the manner in which teenagers are being ripped off via their telephones.

Finally, being a Senator, I am in touch with local representatives outside my own locality and have received reports to the effect that mobile coverage is poor in some areas, notably in County Louth recently and previously in County Waterford. While topographical factors may be involved, the witnesses should comment on the issue of mobile coverage and its availability, as well as the degree to which the companies involved contribute to availability. Alternatively, are they simply opting for what is most commercially viable as coverage is indifferent in a number of areas? A well-informed public representative from County Louth recently contacted me to state that coverage around Carlingford and its environs is extremely poor.

Deputy Liz McManus

While I will read the witnesses' replies, unfortunately I have another appointment at 1 p.m. I apologise.

Senator Jim Walsh

I welcome the representatives from ComReg before the joint committee. What is ComReg's annual cost to the Exchequer? In other words, what is its total annual budget? Second I wish to hone in on the issue of competitiveness because at present we are in an era of competitiveness and I suspect we will be so for a number of years. A general perception exists that the regulatory authorities have not been as effective in respect of competition as is necessary. I wish to ask a few questions in this regard. I note ComReg's report stated the annual turnover of the communications industry was €4.4 billion in 2007, which constituted 1.5% of the EU total. That appears to put Ireland well above the average because we have less than 1% of the EU's population. On that basis, people have raised the issue of their telephone bills and I examined this issue yesterday in anticipation of today's meeting. A cost applies to making a call from an operator to the same operator. If I telephone someone who uses the same operator as me, a certain tariff applies. However, were I to telephone someone who uses a different supplier, it would costs more than twice as much, which beggars belief. The factors that are involved are staggering because this means either my operator is profiteering on the basis that I am calling another operator or the other operator is getting such revenue. The witnesses should clarify whether the receiving operator receives any of the costs to the consumer.

I also note that regardless of whether one is on the telephone for one minute or ten minutes, the same cost per minute applies. I note ComReg's report states that most of its employees come from the private sector. If this is the case, the witnesses will accept that a price reduction normally obtains in respect of greater consumption. Why does a system not operate in which the cost is reduced from one minute to the second, third and fourth minutes and so on? It might help members understand the position were the witnesses to outline the proportion of the call costs that are attributed to fixed costs, operating costs, and operating profit? This also would cover investment costs, interest and similar items.

On the issue of texting, I refer to a matter which comes back to the same principle that is being applied by the operators. I attended a football match in Spain recently and the operator I used charged 24 cent to send a text to Ireland. That sum is more than twice what it would have cost here. If such charges are being applied, whither goes the single market in the EU? Communication in Ireland is far from being competitive. ComReg is predicting consolidation arising from a downturn in revenues due to the current economic position, which probably is realistic. However, this will not help competitiveness. I have a specific question for ComReg, although I do not ask its representatives to respond today. However, it might be useful for ComReg to provide a summary response in writing to members in respect of two specific questions. What has ComReg done regarding competition in recent years and what specific initiatives has it taken? Second, what plans does the commission have to inject greater competition into the market? My colleague, Deputy Mattie McGrath, also has commented extensively on this issue. What initiatives does it intend to take in the next year or two, when greater competition in this area really will be required, to achieve this?

Senator Maria Corrigan

I also welcome the delegation to the meeting. In particular, I wish to compliment the commission on its great website, www.callcosts.ie. I include details about it in any newsletter I put out in my locality and get back a great response about it. It is highly innovative and I hope I have contributed to ComReg’s 600,000 visits. While I do not wish to repeat other members’ comments, there is an issue pertaining to the accessibility and availability of broadband. While the point has been made that this applies mainly in rural areas, I wish to put in a plug for Dublin, some parts of which still struggle to access broadband. I refer in particular to my constituency of Dublin South.

I thank the witnesses for the presentation, which was very comprehensive and it is useful to have a copy of it. It states that ComReg has assisted in the resolution of 3,000 consumer complaints. Over what period did ComReg receive the aforementioned 3,000 complaints? Does it conduct surveys in respect of the complaints profile subsequently? I refer to the outcome of such complains, as well as the general topics and issues that are raised. What is the timeframe for the resolution of complaints? A couple of individuals have spoken to me on this issue and I welcome any comments or feedback the witnesses might make in this regard. Having put in place ComReg's complaints procedure for a period, how effective do the witnesses find them to be? I have received some feedback to the effect they can be somewhat cumbersome and can involve much going back and forth with whatever operator with which the person involved had the original complaint. What is ComReg's feedback in this regard? Does it get feedback from the aforementioned 3,000 complainants subsequently as to how they found the procedures or whether they had suggestions or recommendations to make regarding improvements to the complaints procedures? I note the comment on promoting best practice among operators in their dealings with customers. To continue the points made by Deputy Mattie McGrath and Senator O'Reilly, what is ComReg's role in respect of mobile telephone operators? They appeared before the committee prior to Christmas to address the issue of best practice regarding children. Figures showed that more than 400,000 children under the age of 14 years, approximately 50% of children between five years and nine years of age and 90% of ten to 14 year olds have mobile telephones. Parents believe this enhances their children's safety. Through text or cyber bullying or exploitative premium text messages or services, however, the mobile telephone can become a weapon of destruction.

Thanks to another witness and through a visit made by the committee, we were informed of new software that could provide children protection via SIM cards. However, mobile telephone operators do not seem open to making the necessary accommodations. Of concern to the committee was the unanimity of the four operators appearing before it. They shared the same presentation, made the same responses to our questions and gave the same explanation about why it would not be possible to co-operate with the software. For this reason, we suggested that ComReg's attendance would be useful.

I apologise, but I have another commitment. I will read the responses later and I appreciate ComReg's attendance.

Mr. John Doherty

I thank members for the interest they have shown by asking a comprehensive list of questions. I hope they will tolerate our sharing of the answers. As chairperson, I would like the privilege of answering the easiest questions first.

Concerning broadband, I was misquoted somewhat. On the basis of the national broadband scheme being in place and the continuing progress being made, both by mobile telephone operators and fixed line operators, I alluded to how the situation will move away from supply to quality, service and speed, as has been the case in most countries. ComReg has worked closely with the Department of Communications, Energy and Natural Resources on the design of the national broadband scheme. As members know, the Government's intention is to try to address the remaining deficit in broadband. In the context of a fully rolled out broadband scheme over the next two years and the momentum in the industry and other sectors, the debate will change to a discussion on service quality and speed, as occurred in other countries that reached this pace before us.

We accept that there are patches in broadband availability. No maps of what ComReg says are coverage areas have been endorsed per se. While we provide a geographical map that outlines theoretical coverage areas, we do not claim that everyone within those areas has broadband. The intention of the national broadband scheme is to try to address any deficits. I was surprised to learn of problems in Dún Laoghaire, Sandyford and so on. If the Senator provides specific examples, it would be helpful. With mobile broadband, fixed wireless and DSL cable in the Dublin area, it is difficult to understand what could be the problem.

Most people refer to broadband as relating to Eircom, which is a fixed line provider of a rate-adaptive DSL product that diminishes over length. The length that typically provides the best functionality is 4 km or 5 km from the exchange, although this can be tapered because of pair gains. Previously, especially when the State owned the company, people could not get telephone services and subsequently had their lines split, which acted as a constraint.

We have been trying to drive competition and choice so that Eircom is not the only provider of wireless broadband. For example, 3, which is the winner of the national broadband scheme, claims it will have full coverage of the country when the national scheme is rolled out thanks to the dongle, an item attached to one's laptop. While there are issues, they are being addressed. The Government's intention for the scheme is to mop up the residue, towards which we are working.

ComReg has no role regarding metropolitan area networks, MANs, which constitute a Government initiative. We only have a legal basis to intervene where, for example, a particular element of a company has been designated as having significant market power. The MANs are a Government initiative and we have no role in the choice of locations or product pricing. That is a matter for e-net and the Department of Communications, Energy and Natural Resources. I will ask Mr. Byrne to address some of the other issues.

Mr. Mike Byrne

I will go through the questions posed on some of the spectrum related and broadcasting issues. Concerning Deputy McManus's question on the Broadcasting Bill, on which the Houses have spent some time in recent months, how and with whom ComReg operates is not a matter for us but for the Government. However, our submissions to various agencies have placed on record our belief that, through convergence, the regulation of content and the transmission networks on which that content is provided would lead logically to there being a single agency. This relates to the provision of radio spectrum, how it is used and the services provided thereon. Our role is limited to the spectrum management side of the equation. The broadcasting authority of Ireland, BAI, will have its own responsibilities when it is established.

Currently, we provide radio spectrum directly to the RTE Authority and license the Broadcasting Commission of Ireland, BCI, which runs competitions for radio broadcasting and commercial television licences. This is done in line with legislation. Under European and national legislation, we have no direct responsibility for content. This matter relates to a number of questions on text and cyber bullying asked by other members. They do not fall within our remit. As individuals, we share the concerns voiced today, but we have no regulatory remit.

Senator Jim Walsh

What is ComReg's opinion?

Mr. Mike Byrne

In terms of an analysis of the problem and the best way to provide a solution, our current remit to license mobile telephone network operators provides a direct relationship with them. We have direct responsibility for the transmission network that they use to provide services. However, we have no responsibility for content.

In Europe and elsewhere, the Ofcom model of a converged regulator seemed unusual a number of years ago, but it is becoming increasingly the norm. Our publications have placed on record our opinion that the convergence of technology will lead logically to a converged regulator. I stress that this is not, from a policy perspective, a matter for us. It is a matter for this House and the Minister.

Deputy McManus referred to the digital dividend, the role of ComReg and whether there should be a champion for this. The role of ComReg is limited to the co-ordination of radio spectrum. We work daily with the BCI, the Department of Communications, Energy and Natural Resources, the Minister and other stakeholders. The Minister is involved regularly. Our role concerns the co-ordination of radio spectrum. When the digital system goes live in Wales, it must not block out the digital system in Wexford, Wicklow, Dublin and Waterford. That is an important technical issue.

On the question of whether there should be a champion and who it should be, logically there is a requirement for a single consumer champion for digital terrestrial television. It would be difficult and legislation does not provide for ComReg to be that champion. We provide regulation and the support for competition and innovation on all platforms, not just one in particular. We have a role to play and we are conscious of that. We are keen to ensure we provide our services there.

The last matter concerned non-ionising radiation and our role in respect of that. ComReg provides extensive information on the monitoring of mobile phone masts. I invite members to visit our website, www.siteviewer.ie, if they have not already done so. It provides the location of every mast in the country and the 3G, GSM and fixed wireless access services that are provided from those masts. One can search by county or look them up and trace from north Wexford to Gorey to townlands like Banogue. It is very simple to use and shows the location of every single mast. We conduct an annual audit to ensure those masts are within the tolerance levels for transmission. We publish that information on the website. However, the role of monitoring the health effects is not within our competence. The agency responsible is the Department of the Environment, Heritage and Local Government. That is also on the Department’s website. We provide the score and it is for others to assess the effects of that score.

I reassure members of the committee that, from all the tests completed since 2003, which is a significant number of sites, not a single mast has been found to be even close to being in breach of its tolerance level. We accept requests from public representatives for particular masts to be tested. We feed these into our annual plans as required.

Mr. Alex Chisholm

The first point was raised by Deputy McManus with regard to the "Prime Time Investigates" programme. The Deputy had to leave but, for the record and because I imagine other members of the committee may have seen the programme and share the Deputy's concerns, we saw the programme and were shocked by the handling of those cases by the operators concerned. It concerned a cross-section of the sector, not just one or two companies. Regarding our role in that, ComReg was mentioned as having assisted one of the consumers with the complaint. We had been involved in that way in three of the nine cases. We have since followed up with all the operators concerned to get an explanation from them beyond what was given on the programme. In each case they took a mea culpa view and said they had made a mistake and they had taken steps to redress the consumer and to ensure it does not happen again.

That is all very well for the nine cases but we see it as a symptomatic of a wider problem. A number of issues that were raised match up very well with our analysis of what causes problems for consumers. It seems to happen where two divisions of a company, such as finance and marketing or customer services, do not talk to each other. A typical situation that gives rise to these problems is where there is a handover from one operator to another.

We are drilling down further both with operators, through the code, and with the aggrieved consumers. Senator Corrigan asked about the 3,000 complaints for the period of 2008. We have a breakdown of the figures by type of issues and we use this to guide our work on what is driving the issue, whether it is billing, broadband speeds or contracts. In addition, we are doing a survey at the moment of the worst affected consumers. Within that 3,000, we picked out those who had to wait more than 10 days for a satisfactory response. These were the most irate and disappointed and we are conducting a survey of 300 of them at the moment. We will have the results within the next four weeks, which will give us more ammunition when we go back to the operators to tell them this is not good enough, where there are gaps in the code and where they did not handle the situation well. We are not standing over that quality, we are dissatisfied with it and we are taking steps to change it.

Regarding Eircom installation and repairs, we are not satisfied with the standard and that is why we are taking action. The quality standards we have introduced are stringent and match international standards. They apply to all services using Eircom infrastructure. Even if it is from a competitor company that is marketing a service based on the Eircom infrastructure, these standards still apply. The end customer should get the same standard of service. I referred to the new maxim, to the effect that one should have the service within 24 hours in the case where it is a soft switch new installation but a line is in place already. If it is a completely new installation, two weeks is the new standard. We are putting an end to the six-month period.

This also applies to competitor companies. We have given the companies a letter they can include in their bills to reassure their customers that it is the same level of service. We have also taken compliance action to ensure the quality of service available from Eircom to its customers is the same as the quality available indirectly to customers of other companies. We have assessed this over a three-month period and found that the company is in compliance in that regard. We have been active in ensuring not only that standards are being raised but also that they do not discriminate between different operators or types of customers.

Deputy Noel J. Coonan

From now on the maximum anyone will have to wait is two weeks.

Mr. Alex Chisholm

That is the standard for new installations. The target is 80% within two weeks, a considerable improvement on the existing statistic. For repairs, it is 80% within 48 hours.

Deputy Noel J. Coonan

What happens to the other 20%?

Mr. Alex Chisholm

If one looks at it as a chart, they would be dealt with shortly thereafter. We also found that in Eircom's approach, there was a rump, fewer than 1,000 customers nationwide but several hundred, who had to wait longer than six months. We said this cannot happen at all and that there must be zero in this category.

Deputy Mattie McGrath

One cannot get a person to deal with it. One is sent from Billy to Jack when one rings up. They are not repairing facilities. If there is a storm in a rural area tonight, one will wait weeks for the telephones to be repaired. I do much work with community alert groups, as do many of my colleagues. For elderly people, the only system of contact with the outside world is a pendant alarm. It is a waste of time if there is no telephone line. One waits weeks and I do not believe for one minute this will change. This is meant with no disrespect to Mr. Chisholm. They are not interested in maintaining those areas and do not do so.

Mr. John Doherty

We are saying we do not leave that to chance. We have put metrics in place to monitor companies. If we need to, we will enforce it. This is one where an element of trust is required. The data we were getting and the lack of investment going on were not acceptable. I fully accept that people were not getting it. We put in aspirational objectives and they did not meet them. Now we put in mandatory targets and we will enforce them. We will return in a few years and will be delighted to talk about the subject again.

Deputy Noel J. Coonan

Does the obligation apply to the chip and PIN I spoke about at the end of the line for businesses? Does it apply to rural businesses which cannot implement a chip and PIN service because they are too far away?

Mr. John Doherty

That is a slightly different problem. We are not talking about that in terms of faults and repairs. Earlier I said the focus for broadband will move away from supply to ensuring enhanced quality and speed. The best guarantee of that is the competition that is driving the marketplace in rural Ireland and the rest of the country. Eircom has upgraded its core transport network and is upgrading the rest of the network. One of the problems with broadband is that one dimensions or scales the network initially based on a certain level of traffic. When demand suddenly takes off, one needs to rescale it to take the extra volume. That process is under way. We have set clear targets for fault repairs and we expect Eircom to meet them.

Deputy Noel J. Coonan

I accept that but Eircom has said specifically it will not upgrade the lines in rural Ireland in the situations I mentioned. Neglecting to upgrade lines eliminates competition immediately as other providers cannot do it.

Mr. John Doherty

It does not. Mobile broadband and the national broadband scheme the Government launched will drive competition. Just before Christmas Mr. Rex Combe, the chief executive of Eircom, confirmed it was going ahead to upgrade the exchanges and lines that remain to be done. The best guarantee for that in the short term is to have competition and ensure that competition drives innovation and quality, which is the point to which I alluded. One gets to a certain point on supply, but if the service is not good enough, one must focus on getting the service to a level which meets that changing need.

Deputy Noel J. Coonan

That is the theory but it is not happening in practice.

Mr. John Doherty

It is happening in practice, but not quickly enough. The focus needs to move to ensure the quality of service is what the customers require. The national broadband scheme will enhance competition further. The Government's intention of meeting the requirements of the national broadband area will further enhance competition and the differentiators will become the quality of service, speed and customer service people get.

Chairman

If Deputy Coonan has a particular problem could he make it known to Mr. Doherty outside the meeting?

Mr. John Doherty

Yes. If he could give us some specific details I would be delighted to take it up.

Mr. Alex Chisholm

I will pick up some of the postal questions. ComReg has been in favour of postcodes for a number of years. We have seen them as positive for the development of the market and as something that can assist the providers with efficiency. It is good for new entry and major users of the postal service, including in public services. We have supported that in the past and would support again. The policy responsibility lies with the Department of Communications, Energy and Natural Resources, and the Minister has been actively pursuing it.

There are different accounts from people about their experiences of the quality of postal services. The performance for next-day delivery has improved from 73% to more than 80%. We still do not think that is good enough and will keep up the pressure on An Post to improve that. Members asked about our role in the liberalisation of the market. One of the impacts of that is that with more competition in letter post, the quality of service is one area in which one can compete. In other countries which already have a liberalised market, the percentage of post delivered next day rises sharply not just because the regulator requires it but because customers demand it and if one does not provide it, they will take their business elsewhere. The liberalisation will be positive for quality. It can also be positive for prices and efficiency.

We are fully committed to ensuring the universal service delivery and the delivery of post to isolated areas is not endangered but is maintained in a liberalised market. That is a very important part of it. When we work with the Department of Communications, Energy and Natural Resources in transposing the third and probably final directive for post over the next year, we will ensure that happens. Does Deputy Coonan want to comment?

Deputy Noel J. Coonan

What is Mr. Chisholm's definition of an isolated area?

Mr. Alex Chisholm

I was just echoing the words of Senator O'Reilly so I will have to bow to his greater wisdom. I mean nationwide.

I thank Senator Corrigan for mentioning www.callcosts.ie. That is a very useful service. I do not know if Deputy McHugh has used it but we would be happy to try to analyse his bills to see if there are better packages he might take advantage of. We provided that service to members of the public and Members of the Oireachtas over the past year. That might help.

On the question of whether mobile prices are justified, the prices are set by the market and our role is to ensure the market is working relatively successfully or efficiently. From our presentation it is clear mobile prices have been falling in absolute terms year on year over recent years. The average telephone bills businesses and individuals pay are lower. As members have probably seen, mobile companies in Ireland were trying to increase traffic or usage by a greater amount than they were reducing profits. Competition has become very intense in the mobile market, noticeably over the past year or so and especially because of the impact of Meteor and 3. Prices have fallen very sharply over that period. The operating companies all report falling revenues and margins and reductions in their average revenues per user, although traffic continues to grow. This is a sign that competition is proving effective in delivering value in the mobile sector.

Roaming charges have been very high and this has been a matter of considerable concern to this office for a number of years. We have worked very closely with the European Commission and the European Regulators Group to bring those down. Caps were introduced for making and receiving voice calls when roaming. Those have been reduced year on year, and under the new proposal we hope will come into effect in July of this year, they will be reduced again and the reductions will be extended for another three years. The new proposal also says there should be a cap on charges for data and that customers using their BlackBerries when travelling in Europe should be advised of the likely cost. That is to deal with so called "bill shock" where people cannot believe how much their bill is and would not have used the service in that way had they known. There is an information point there. The proposal is that the charges for SMS or text services will also be capped at 13 cent. Deputy McHugh mentioned a price of 24 cent for his texts, so he will experience a significant reduction when that takes effect in summer.

Senator Jim Walsh

Will that apply even when texting from one operator to another?

Mr. Alex Chisholm

Yes, it will be a standardised text price.

Deputy Noel J. Coonan

I ask about collecting one's post in the morning rather than waiting for delivery.

Mr. Alex Chisholm

That is a new issue for me and I would like to come back to the committee on that. It sounds like a concern and I have made a note to myself to write to the committee on it.

Senator Joe O’Reilly

Apart from bullying, which is another serious debate, there is the cost youngsters incur downloading games texts on mobiles. Perhaps the witnesses dealt with the other question but I did not pick it up. What is the coverage nationally and of individual counties? I should have included Westmeath as I have received representations from there regarding differing mobile phone coverage. Westmeath, Waterford and Louth are the three counties I have heard about recently.

Mr. Mike Byrne

I have taken a note to come back to Senator O'Reilly on the coverage. The licences issued by ComReg to the mobile network operators are national so they have requirements relating to national coverage. I will come back to the Senator directly on the particular areas of concern.

Senator Joe O’Reilly

The area is in Westmeath around Mullingar.

Mr. John Doherty

There was a point in Deputy McHugh's comments relating to Valentia. I would prefer to take that up bilaterally with him and will do so subsequent to these proceedings.

Deputy Noel J. Coonan

I thank the gentleman for their patience in responding. I am a little concerned about Mr. Doherty's remark that there is no broadband map per se. I did not make this up as there is a broadband map.

Mr. John Doherty

I said there is a map but it is not endorsed by ComReg. That was the point.

Deputy Noel J. Coonan

It is not endorsed by ComReg.

Mr. John Doherty

It was developed by the Department of Communications, Energy and Natural Resources. We provide maps for a fixed wireless operator, for example, which describes the geographical coverage area. That is not to say all those customers will be covered. The only point I was trying to address was that there is not a ComReg-endorsed map of that coverage.

Deputy Noel J. Coonan

A map has been held up to me in committee and elsewhere indicating there is coverage in an area.

Mr. John Doherty

Perhaps the Deputy will get that map.

Deputy Noel J. Coonan

I have had it in most other meetings; unfortunately I did not bring it to this one.

Senator Joe O’Reilly

I confirm that huge tracts of County Cavan, for example, do not have broadband.

Mr. John Doherty

That is the intention in trying to implement a broadband scheme to pick up those areas. I will ask around and the Deputy can ask around and perhaps we can discuss the map then. The only point I was trying to make is there is not a ComReg map.

Deputy Noel J. Coonan

I will forward a copy to the witness.

Chairman

There will be much correspondence as a result of this meeting.

Senator Jim Walsh

I do not want to open the debate again but could we have a response in writing to the specific questions I put? I would be happy with that but I am looking for a specific response.

Mr. John Doherty

One point that arises from the Senator's comments is that ComReg gets no State funding. We make a surplus, which we return to the State.

Senator Jim Walsh

My question was very different. What is the annual cost of ComReg and what is the budget? The witnesses may respond in writing.

Mr. John Doherty

I was going to say that in our full budget we have a requirement, and even before that we had a requirement, on transparency. We publish our full budget every year. It is on our website and I would be delighted to send a link to the Senator.

Senator Jim Walsh

I will get it on the website.

Mr. John Doherty

We found the opportunity for the exchange to be very useful for our own thinking. If I might have the temerity to suggest it, we would be delighted to invite the Chairman and committee to visit ComReg and we might be able to go into more detail on some of the questions over the next period. We would be delighted to provide that facility if members were interested.

Chairman

On behalf of members we thank the witnesses for their invitation and we will find an opportunity to take it up. The clerk might keep in touch with the delegation and the committee members and I would like to avail of that opportunity. I thank the witnesses for their very comprehensive address to us and for answering the questions they could answer. Other members will be in touch. Information was requested from Senator Corrigan and we will arrange to get that. Is there any other business to be conducted?

Senator Jim Walsh

There is one item that goes back to the meeting we had with the management of RTE some time back. It made a very good presentation on what it would do to target cost savings for 2009, which I believe were in the order of €50 million. That included salary cuts for management, which it had already taken, and salary cuts across the board. In answer to a question put to it on contract broadcasters, many of whom would be on very high six-figure salaries, it was stated that there would be negotiations. Recently I saw a quote in the newspaper attributed to one of those broadcasters saying there would be no cut for that broadcaster. In the current climate it is important that we write to RTE and ask it to clarify the position.

Chairman

I am sorry to interrupt the Senator but we have a response from RTE on that, which I will circulate. Perhaps the Senator might want to follow up at the next meeting. If there is no other business to be conducted, the committee stands adjourned.

The joint committee adjourned at 1.35 p.m. until 9.45 a.m. on Wednesday, 28 January 2009.