I propose to take Questions Nos. 437 and 438 together.
The provision of telecommunications services, including Next Generation Access Services, is undertaken by telecommunications service providers operating in a fully liberalised market under licences provided by the Commission for Communications Regulation (ComReg). The regulation of telecommunications operators is the statutory responsibility of the ComReg, which is independent in its functions.
Both policy and regulation have contributed substantially to the roll out of high speed broadband networks in the last number of years. ComReg's NGA decisions in 2013 created the framework to drive accelerated investment in high speed broadband, which is now available to approximately 1.4m premises in Ireland. ComReg's multiband spectrum auction in 2012, has also allowed the extensive roll-out of 4G networks with at least one operator now having in excess of 90% population coverage. From a policy perspective the National Broadband Plan is also driving investment, and legislation passed by the Houses of the Oireachtas to allow ESB to use its network to deliver high speed broadband services, has resulted in fibre-to-the-home services being rolled out currently in 17 regional towns.
In October, I signed Regulations which will allow ComReg to auction spectrum in the 3.6GHz band (Wireless telegraphy (3.6GHz Band Licences) Regulations, 2016 (S.I. 532 of 2016)). The liberalisation of this band is an EU requirement and the adoption of the 3.6 GHz EC Decision is mandatory for all EU Member States, including Ireland. This Decision is service-neutral, technology-neutral and expressly obliges Member States to allow the use of the entire 3.6GHz band fixed and mobile services. The release of spectrum in this band will provide an 86% increase in total spectrum available for mobile and/or fixed wireless services, leading to better quality voice and data services to customers across Ireland.
ComReg is independent in its functions and I have no role in the process for allocating the spectrum which is now underway. Having regard to the independence of ComReg in the matter and the fact that a process is underway, it would not be appropriate for me to comment further on the matter at this time. I would note however that the allocation process followed extensive public consultation by ComReg over almost a two year period. I have no reason to believe that the process being currently undertaken by ComReg will not result in the fair allocation of any future spectrum assignment and I expect the outcome of the process to provide a level of certainty and transparency for all stakeholders. A policy direction is neither necessary nor appropriate in the circumstances.
Investment decisions by the commercial telecommunications networks providers in the electronic communications market, including investment decisions on the roll-out of Next Generation Access (NGA) are taken purely on commercial grounds by each network operator, having regard to the predicted investment cost and the anticipated revenue returns from any such investment. The State can only intervene in this market in cases of clear market failure. In this regard the National Broadband Plan aims to bring competitively priced quality services to rural areas, through a State intervention to build a new high speed broadband network. It is envisaged that this network will offer wholesale services to multiple retailers, who can in turn offer competitive, affordable and high speed broadband to users.
The Plan aims to deliver high speed services to every city, town, village and individual premises in Ireland. The Programme for Government commits to the delivery of the NBP as a matter of priority. This is being achieved through private investment by commercial telecommunications companies and through a State intervention in areas where commercial investment has not been fully demonstrated.
The Department is now in a formal procurement process to select a company or companies who will roll out a new high speed broadband network in the State Intervention Area comprising over 750,000 premises in Ireland, covering 100,000 km of road network and 96% of the land area of Ireland. The procurement process is technology neutral. All three bidders involved in the competitive dialogue process are proposing a predominantly fibre-to-the–home network solution to connect rural Ireland. Wireless technology may also play a role in part of the overall solution. It is a matter for the bidders in the process to put forward the technologies they believe are most appropriate to meet the NBP objectives.
Accordingly, I do not propose, nor do I see any necessity, to issue any policy direction to ComReg in this regard.
