Dáil Éireann Debate, Thursday - 22 November 2012
137. Deputy John McGuinness asked the Minister for Communications, Energy and Natural Resources when he expects the Exchequer to receive the moneys raised by the recent multi-band spectrum auction; the amount that he anticipates will be paid up-front; the amount he expects will be paid in instalments; and if he will make a statement on the matter. [52006/12]
Amharc ar fhreagra141. Deputy Thomas P. Broughan asked the Minister for Communications, Energy and Natural Resources if he will report on the recent sale by ComReg of 4G spectrum auction haul the terms of agreement with the winning bidders in terms of payment schedules and length of the licensing agreement; his views on the way in which the outcome of the auction compares with similar auctions in other EU and OECD states; and if he will make a statement on the matter. [52022/12]
Amharc ar fhreagraI propose to take Questions Nos. 137 and 141 together.
As the Deputy will be aware the Commission for Communications Regulation (ComReg) recently announced the winning bidders of its Multi-band Spectrum Auction for the 800, 900 and 1800 MHz bands. The winning bidders will pay €854.64 million for these spectrum rights, comprising firstly of Upfront Fees amounting to €481.7 million (adjusted as necessary by transitional arrangements) and secondly, Annual Spectrum Usage Fees in the amount of €372.95 million which will be adjusted for inflation and paid in instalments until July 2030. The duration of the licences is to 2030. It is my understanding that slightly over 50% of the fees (approximately €450M) will be made available to the Exchequer this year. Details of Upfront Fees and Spectrum Usage Fees for the duration of licences can be found in Section 2.2.5 of ComReg’s Information Memorandum 12/52, which is available on the ComReg website, www.comreg.ie.
In addition to a strong return for the Exchequer, the allocation of Spectrum under auction will provide for the rollout of faster, fourth generation 4G mobile Internet services which will maintain and boost Ireland’s competitiveness. This is a key component of the Government's National Broadband Plan which envisages high speed broadband services being rolled out across Ireland in the lifetime of this Government.
ComReg has advised that the overall revenue raised compares favourably with prices observed recently in other comparable European auctions, although it is difficult to provide comparisons given the manner in which blocks of spectrum were packaged in the ComReg auction and variations between Member States in how spectrum is allocated, population size and other factors.
