The provision of telecommunications services, including broadband, is a matter in the first instance for the private sector companies operating in a fully liberalised market, regulated by the independent Commission for Communications Regulation, ComReg.
It is accurate to say that the Irish broadband market is currently ranked lower than more developed markets in terms of broadband take-up. This reflects the relatively late launch of affordable and competitive broadband services in Ireland by telecoms and cable companies in the early 2000s.
However, Ireland is now a fast growing broadband market and broadband take-up has more than tripled since late 2004 when I set a target of 400,000 subscribers by end 2006. This target has already been comfortably exceeded. The challenge now to industry is to reach 500,000 subscribers by 2007. If the current growth holds I should be in a position to announce 500,000 subscribers by Spring 2007.
The role of Government is to implement regulatory and infrastructure policies to facilitate the provision of affordable, high quality telecommunications services, by competing private sector service providers.
However, it has been clear for some time that the private sector has failed to invest at the level necessary to keep pace with the demand for broadband. Direct funding has already been provided under the NDP 2000-2006 for the provision of backbone infrastructure and to upgrade local access infrastructure. My Department's regional broadband programme is addressing the infrastructure deficit by building high-speed open access broadband networks, in association with the local and regional authorities, in the major towns and cities. These Metropolitan Area Networks (MANs) allow the private sector to offer world-class broadband services at competitive costs. The networks also offer towns opportunities to attract inward investment in advanced technology and knowledge based enterprises. However, it has been clear for some time that the private sector has failed to invest at the level necessary to keep pace with the demand for broadband. Direct funding has already been provided under the NDP 2000-2006 for the provision of backbone infrastructure and to upgrade local access infrastructure. My Department's regional broadband programme is addressing the infrastructure deficit by building high-speed open access broadband networks, in association with the local and regional authorities, in the major towns and cities. These Metropolitan Area Networks (MANs) allow the private sector to offer world-class broadband services at competitive costs. The networks also offer towns opportunities to attract inward investment in advanced technology and knowledge based enterprises.
The Department also offered funding assistance for smaller towns and rural communities through the Group Broadband Scheme. The scheme is technology-neutral, allowing the community to select the most suitable broadband delivery platform for the area.
Despite private and public investment in broadband infrastructure there are still some parts of the country where the private sector will be unable to justify the commercial provision of broadband connectivity. Options to address these gaps in broadband coverage are currently being considered by a Steering Group comprising officials from my Department and representatives from ComReg. I expect to finalise proposals shortly.