The National Broadband Scheme (NBS) is designed to deliver broadband to areas where the market has failed to provide services including any unserved rural areas in south Tipperary. It will bridge the digital divide, create greater equality in terms of social and economic inclusion and remove the disadvantage caused by a lack of broadband services. It will also facilitate competition in the broadband market in the regions leading to greater choice, quality and value for money to the consumer.
Following the conclusion of a competitive tendering process, my Department has entered into a contract with "3", a Hutchison Whampoa company, for the delivery of the NBS. 3 will be required to provide services to all residences and businesses that fall within the NBS and who seek a service. In order to facilitate competition in the area, 3 will also be required to provide wholesale access to any other authorised operator who wishes to serve residences and businesses in the NBS area. 3 is currently planning the roll out of the NBS and this roll out will begin in the coming months. Details of the areas to be covered by "3" under the NBS are available at www.three.ie/nbs.
Challenging roll out targets have been agreed with 3 and payments will be made on the basis of the roll out of the network which will provide 100% broadband coverage in the NBS area within 21 months of contract signing. Of the Government's total contribution to the NBS amounting to €79.8 million, approximately €62 million will have been paid to 3 in 18 months time in accordance with the roll out targets.
Over the period 2004-2008 some €164.954m has been spent on Information and Communications Technology (ICT) investment. This includes investment in grant aiding private sector investment, investment in the Metropolitan Area Networks (MANs) Programme, the Group Broadband Scheme (GBS), the National Broadband Scheme (NBS) and the Schools Broadband Programme.
The National Development Plan for 2007 to 2013 envisages total investment over the period of €435 million for communications and broadband. €48.183m has been allocated for expenditure on the ICT Programme during 2009. The main projects for investment in 2009 include: the National Broadband Scheme (NBS); completion of Phase II of the MANs Programme; the procurement of a Management Services Entity for the Phase II MANs; an international connectivity project in partnership with the Department of Enterprise, Trade and Investment in Northern Ireland (Project Kelvin); and a demonstration project to deliver 100mbps broadband connectivity to post primary schools.
The role of the Government is to formulate regulatory and infrastructure policies to facilitate the provision of high quality telecommunications services, by competing private sector service providers. In that regard it is envisaged that the investment by the service providers, facilitated by initiatives such as those outlined above, will underpin Ireland's continued strong growth in OECD and EU broadband tables. That growth is reflected in the facts that 59% of households (end Q3 2008) and 83% of SMEs (end Q1 2008) in Ireland have a broadband connection.