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Radio Licensing

Dáil Éireann Debate, Wednesday - 19 October 2011

Wednesday, 19 October 2011

Questions (6)

Timmy Dooley

Question:

6 Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources if, following the introduction of digital television, he intends to instruct ComReg to ensure all 3G and 4G licences issued will be subject to a requirement of 100% population coverage; and if he will make a statement on the matter. [30098/11]

View answer

Oral answers (9 contributions)

The management of the radio spectrum is a statutory function of the Commission for Communications Regulation, ComReg, under the Communications Regulation Act 2002. In accordance with this function and its obligations under EU law, ComReg designs and manages the spectrum assignment process. In so doing, it must bear in mind the objectives of ensuring the efficient and effective use of radio frequencies, promoting the harmonisation of use of frequencies across the European Union, and encouraging investment and promoting competition in the interests of consumers. ComReg is independent in the exercise of this spectrum management function.

The individual licensing of wireless communication equipment is also a function of ComReg under the Wireless Telegraphy Acts 1926 to 2009. Under the Acts, mobile telecommunications service providers and operators are required to obtain licences from ComReg. They are also required to comply with licence conditions set by it in accordance with regulations made by it under the Acts and in accordance with the EU regulatory framework.

I am advised that ComReg will not be granting 3G or 4G licences in the future. Instead, a multi-band award of spectrum in the 800MHz, 900MHz and 1,800MHz band, via auction, is proposed. In accordance with European directives, spectrum will be released on a service and technology neutral basis. I am advised that this means that the eventual licensees will be permitted to use their spectrum allocations to provide electronic communications services of their choosing, including mobile telephony and Internet access services, subject to certain technical specifications — for example, compatibility as set out in the directives.

I am further advised that the minimum population coverage requirements of the existing 3G licences were volunteered as part of competitive evaluation processes. Competition between current operators has delivered coverage levels that exceed, often significantly, the minimum coverage requirements set out in the licences. Coverage continues to be an important competitive differentiator in the market and operators continue to give it prominence in marketing and advertising campaigns.

Additional information not given on the floor of the House

ComReg advises that a stipulation of 100% population coverage is not proposed, as it would require costly and duplicative infrastructure to be built. However, it expects that market competition will continue to deliver comprehensive coverage for voice services in a cost effective manner. ComReg is of the view that its current proposals will also ensure cherry-picking of high density urban areas does not occur.

ComReg has undertaken an extensive and comprehensive public consultation process on its proposals for the forthcoming spectrum auction. I expect that it has examined every aspect in great detail with a view to ensuring the maximum possible benefit for consumers, in accordance with its statutory obligations. Details of its proposals are available in its latest published document, ComReg 11/60, and associated documents.

From the Minister's reply, one would think he had no role in the matter and that he could not give any general directives to ComReg. If necessary, he could, of course, legislate. When ComReg issues 800MHz and 900MHz band licences, will it be a condition to have 100% coverage across the territory of the State? Furthermore, will the Minister assure us that coverage will extend indoors? If it refers to outdoor coverage, it should be noted that most people use such devices indoors. Will ComReg insist on whoever receives a licence providing 100% coverage across the State within a fixed period?

Given the complexity of this issue, I have already suggested to the Deputy that it would be a good idea for the Joint Committee on Communications, Natural Resources and Agriculture to invite ComReg to make a submission on this matter. The Deputy is probably posing the question because he knows there is no such thing as 100% coverage. He also knows that in many of the precedents set there has not been 100% coverage, even in the case of the RTE signal. For example, when Vodafone received its licence, the requirement was that there be 85% coverage. In the case of O2, the figure was 80%, and for Meteor, 53%. Because of the competition factor to which I referred, all of these operators comfortably exceeded the requirement set. The result is that we now pretty much have universal coverage. I have represented views to ComReg which has conducted its consultation process. It would be productive if ComReg was to make a submission to the joint committee.

We will certainly invite ComReg and I understand the joint committee is in the processing of doing so. In the meantime, policy is laid down by the Minister, not ComReg. When he talks about 70% coverage, he is referring to population; the figure is about 50% in the case of territory. It is interesting to note that the figure for Germany is 90% and for the United Kingdom, 95%. Is it Government policy to ensure that when spectrum is awarded via auction, there will be as near to 100% coverage as possible? The Minister can probably argue that in the case of RTE there is 99.99% coverage. It is virtually 100%, although we will probably settle for slightly less. We must be careful, however, because if the Minister refers to a target of 95% of the population, that may cover only 80% or 85% of the territory of the State owing to the population imbalance between different areas.

Can the Deputy, please, put a question?

I am asking a question. Will the Minister set minimum coverage requirements to be sought by ComReg to ensure there will be a universal service throughout the State, or will he be the agent adding to the digital divide within the country?

I am reluctant to agree with the Deputy that there is a digital divide in the way he portrays it. The reason we have a statutory body charged with management of this process is that it has the technical and professional capacity to assess it. It is a very complex issue. I think the Deputy understands the point I have made, that there is no precedent in which there has been 100% coverage. However, because of competition in the marketplace, there will, in effect, be universal coverage. The Government's policy approach to the spectrum to be awarded by auction is primarily that it offers us the capacity to enhance mobile and especially broadband services. That is the main policy objective. Second, it will realise a not insignificant income for the State which may be seen by the Deputy as incidental to the policy objective, but it is important.

It is not incidental.

I am sorry, but the Deputy will have to raise that matter on other day. We are proceeding to Question No. 7, as we are way over time.

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