While the provision of telecommunications services is a matter in the first instance for the private companies operating in a fully liberalised sector, there is a clear consensus that in cases of market failure or sluggish market response it is perfectly legitimate for Government to intervene. An indicative €200 million, part-funded by the European Regional Development Fund, was earmarked for the regions under the National Development Plan 2000-2006 for a programme of broadband infrastructure projects which will facilitate the provision of world-class communications services. Earlier this year, I issued a set of policy directions to the Commission for Communications Regulation in respect of flat rate Internet access. FRIACO, as it is called, was introduced in June 2003. I understand the numbers of those with FRIACO has gone from 0 to somewhere in the region of 30,000. This is a significant number. I am currently conducting a general review of the impact of the policy directions with a view to ascertaining whether further action by way of a new policy direction is needed to further regulatory priorities for the sector.
I intend also to bring forward proposals for new telecommunications legislation to enhance the provisions of the regulatory framework package. I intend this legislation to support and encourage competition, innovation and affordable services, provide protection for quality services to the end user and deal with consumer protection issues in the retail broadcast sector. I intend to bring the legislative proposals forward early next year.
There are many towns around the country in which the provision of broadband should be addressed by the market. The regional broadband deficit is unsustainable and I want to see it addressed in a pro-competition, pro-choice and low-cost fashion. If the market does not address the deficit quickly, I will intervene on the regulatory and legislative front to advance change. I will continue to push the broadband agenda by every means available to me.