Dáil Éireann Debate, Thursday - 31 January 2013
40. Deputy Mick Wallace asked the Minister for Communications, Energy and Natural Resources when the rollout of the 4G network across the country will begin and the percentage of the population that will be provided with the service by the end of 2013; and if he will make a statement on the matter. [4765/13]
View answerThe management of the radio spectrum is a statutory function of the Commission for Communications Regulation (ComReg) under the Communications Regulation Act, 2002 as amended. In November 2012 ComReg announced the results of its successful Multi-Band Spectrum Award (MBSA) process which resulted in a transfer of €450 million, in respect of upfront fees accrued, to the Exchequer on 14 December 2012. The remainder of the total licence yield of some €855 million will be paid on an annual basis over the duration of the terms of the licences.
As part of this process ComReg awarded spectrum rights of use across three critical bands – the 800Mhz, 900Mhz and 1800Mhz bands – for the period 2013 to 2030. These spectrum bands are highly suitable for advanced mobile services due to their excellent propagation properties, which allow for wide area coverage and improved in-building reception. Liberalised spectrum rights of use were won by the four existing Mobile Network Operators (MNOs), namely: Hutchison 3G Ireland Ltd.; Meteor Mobile Communications Ltd.; Telefonica Ireland Ltd; and Vodafone Ireland Ltd. It is a condition of a Liberalised Use Licence that a minimum 70% population coverage obligation is to be achieved by a licensee within 3 years of its licence commencement date.
ComReg set out the process it has adopted for the award of rights of use for radio frequencies in the 800Mhz, 900Mhz and 1800Mhz bands in its information memorandum and associated documents (ComReg document 12/52). These documents also set out the reasons, analysis and other material relied upon by ComReg in support of its substantive decisions regarding the minimum coverage and rollout requirements for the rights of use to be granted in the award process. Amongst other things, ComReg considered that actual coverage levels are expected to exceed a minimum 70% population obligation given the competitive nature of the market and the limited risk of roll-back of coverage from the current levels.
In this context, the Deputy may wish to note that the four existing mobile operators have achieved coverage levels exceeding those set out in their respective licences. For example, for 3G services, Vodafone’s coverage covers 90% of the population, 5% more than its obligation. Hutchison 3G, better known as “3”, covers 96% of the population, 11% more than its obligation. O2 also covers 90.5% of the population, which is also more than its obligation.
ComReg has also advised me that coverage continues to be an important differentiator in the mobile telecommunications market such that any material deterioration in coverage by any one network would undermine that network’s attractiveness to its existing and potential customers. It is also important to emphasise that the coverage proposals were designed to facilitate the possible entry of new operators in a manner that would ensure that ‘cherry picking’ of high density urban areas would not occur. While the four Liberalised Use Licences of the Mobile Network Operators are due to commence on 1 February 2013, the timing and extent of each of ‘4G’ (Long Term Evolution (LTE)) network rollout is, with the exception of the above coverage obligation, a matter for the operators themselves.
