Dáil Éireann díospóireacht -
Thursday, 25 Jul 1996

Vol. 468 No. 4

Written Answers. - Sale of Cablelink.

Robert Molloy

Ceist:

922 Mr. Molloy asked the Minister for Transport, Energy and Communications if he supports the view expressed in the Forfás report that there is a good case for the sale of the Cablelink subsidiary of Telecom Éireann to an independent network provider; and if he will make a statement on the matter. [15415/96]

Minister for Transport, Energy and Communications (Mr. Lowry)

The accelerating development of communications technologies and in particular the increasing convergence between telecommunications and broadcasting services is rapidly redefining the potential of cable television network operators to expand into new product areas. It is widely accepted that the upgrading and development of cable networks to enable the delivery of advanced multimedia information services to the mass market will be a key factor in promoting the development of the information society which in turn is regarded as an important influence on future economic growth and development. This is fully recognised in the Forfás report referred to by the Deputy.

In Ireland, I am anxious that the telecommunications and broadcasting sectors develop rapidly towards the widespread provision of advanced information services. In this context, I sought and received from the Government approval for inclusion in the mandate for the negotiation of the Telecom Éireann strategic alliance, a requirement that Cablelink would be developed as a platform for the provision of advanced services. The draft transaction terms to be signed with KPN/Telia include specific initiatives in relation to the development of Cablelink in order to diversify its product portfolio and, using the expertise of KNP/Telia in cable and multimedia applications, it should be possible to achieve the advanced communications services environment envisaged by Forfás without a change in ownership of Cablelink.