The Government is addressing the local infrastructure deficit by building high-speed open access metropolitan area networks, MANs, in 120 towns and cities nationwide, on a phased basis in association with the local and regional authorities. Phase one of this programme has delivered fibre optic networks to 27 towns and cities throughout the country, which were built on time and under budget.
This programme has been extended to a further 90 towns in various locations nationwide. Design and procurement has already commenced in several regions and construction is due to start in 2006. It is expected that these MANs will be completed during 2006 and 2007. These metropolitan area networks will allow the private sector to offer world-class broadband services at competitive costs.
Further to a competitive, public tender process, E-Net was awarded the contract to manage, maintain, market and operate the phase one MANs for a period of 15 years in June 2004. E-Net is an independent company based in Limerick established solely for this purpose.
Under phase one of the MANs programme, 24 networks have now been completed and handed over to E-Net. A further three MANs are nearing completion and due for handover to E-Net in quarter one 2006. Activity has now begun on the networks with several customer contracts being signed by E-Net, including arrangements for backhaul and 19 of the 24 MANs have been lit to date. The details of these contracts are commercially sensitive and are a matter for E-Net.
E-Net's contractual obligations for the management, operation and maintenance of the MANs are set out in the concession agreement between my Department and E-Net. Tight controls exist within the concession agreement to closely monitor E-Net's performance. E-Net formally reports to my Department on a quarterly basis and is obliged to file various documents throughout the contract term dealing with its activities. E-Net also publishes an annual set of accounts. My officials closely monitor E-Net to ensure it is fulfilling its obligations in line with the concession agreement.