Dáil Éireann Debate, Wednesday - 10 December 2008
196 Deputy Liz McManus asked the Minister for Communications, Energy and Natural Resources his views on the possibility that the preferred tender for the national broadband scheme will have unfair advantage over other mobile operators if offering voice services in areas earmarked for the national broadband scheme; and if he will make a statement on the matter. [45395/08]
View answerThe possibility that the winning service provider of the National Broadband Scheme (NBS) could offer additional services, other than the broadband service required under the scheme, using the NBS infrastructure, was recognised from the outset.
It was necessary to consider the issue in detail in order to ensure the scheme complied with EU rules governing State Aid and competition. The issue was addressed in the State Aid application to the European Commission and in the design of the tender documentation for the NBS. The EU Commission approved the NBS on 25 September 2007.
Specifically, tenderers participating in the NBS procurement process were required to offset any additional revenues arising from the use of NBS infrastructure for purposes other than the provision of broadband when calculating the level of contribution required from the State. An appropriate contractual obligation will be placed on the NBS Service Provider to ensure that the State can recoup any profits generated by the NBS Service Provider beyond those permitted by the Tender process and in light of commitments made in its bid.
