Peadar Tóibín
Ceist:1. Deputy Peadar Tóibín asked the Taoiseach if he will estimate the number of small and medium enterprises that do not have access to fibre based broadband across the State. [41606/12]
Amharc ar fhreagraTuesday, 18 June 2013
Ceisteanna (1)
Freagraí ó Béal (7 píosaí cainte)
Os rud é go bhfuil an Taoiseach as láthair, tá mé ag freagairt na ceisteanna seo thar a cheann agus thar cheann an Aire Stáit, an Teachta Kehoe.
The information requested by the Deputy regarding the number of small and medium enterprises which do not have access to fibre-based broadband across the State is not available. The CSO collects data on six different types of connections to the Internet for enterprises, as required by Eurostat under regulation, namely dial-up modem, broadband connection, DSL broadband, other fixed internet connection, mobile broadband using at least 3G technology, and other mobile broadband connection. As such, the data collected do not make a distinction between fibre and non-fibre broadband.
The table to be circulated with the Official Report outlines the findings of the types of connections to the Internet for small and medium-sized enterprises in the State in 2012. Enterprises may also have multiple connection types to the Internet.
The survey on e-commerce and ICT used to compile these data is a sample of enterprises with ten or more employees. The survey does not cover what the CSO term as micro-enterprises, which are those enterprises employing fewer than ten persons. For the purposes of the survey, the CSO classifies small enterprises as those having between ten and 49 employees and classify medium-sized enterprises as those having between 50 and 249 employees. The most recent survey on e-commerce and ICT was the 2012 survey which was published in December 2012. The 2013 survey is due to be published in December 2013.
|
Small-sized Enterprises |
Medium-sized Enterprises |
Combined Small & Medium |
|
|
Dial-up Modem |
15.3% |
15.3% |
15.3% |
|
Broadband connection |
89.6% |
96.0% |
90.7% |
|
DSL Broadband |
74.4% |
78.0% |
75.0% |
|
Other fixed internet connection |
25.8% |
48.8% |
29.5% |
|
Mobile broadband using at least 3G technology |
43.1% |
62.4% |
46.3% |
|
Other mobile broadband connection |
20.1% |
35.6% |
22.7% |
The reality that broadband is not available in parts of rural areas to the extent required by small and medium-sized enterprises. Poor quality and expensive rural broadband is inhibiting Ireland's recovery. I ask the Minister of State to request the CSO to carry out a survey of whether access is via fibre or by other means. If we had that we could at least deal with the question properly because fibre-based broadband is superior to other broadband supply.
Last week, the Government took on board some of the Sinn Féin proposals on using the National Pensions Reserve Fund as a stimulus. Three years ago we suggested that part of that money be used to deal with the roll out of broadband throughout the country. We suggested that €2 billion be used to roll out next-generation broadband, which would obviously be concentrated on fibre. This would take us out of our position at the bottom of the league in Europe and in OECD countries. Will the Government take on board the Sinn Féin approach and invest in fibre-based broadband infrastructure to assist small and medium-sized enterprises and homes in general in accessing this much-needed technology? The future recovery of many of these companies needs to be based on that facility through the use of the stimulus package that is at long last coming on board with investment from the National Pensions Reserve Fund on something that will pay dividends to Ireland. We should invest properly in next-generation broadband.
I would be happy to bring the Deputy's point on the type of survey done to the attention of the CSO. The national broadband plan was launched by the Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, on 30 August 2012.
The targets include having 70 megabytes to 100 megabytes for at least 50% of the population, with the majority having access to the latter, to be delivered by 2015 through the commercial sector. Further, at least 40 megabytes per second, and, in many cases, much faster speeds for a least a further 20% of the population and potentially to 35% of people in smaller towns and villages will be delivered through a combination of commercial and State investment. There will be an absolute minimum of 30 megabytes per second available to all irrespective of location in the State.
Several actions are also outlined in the plan including investment by the telecommunications industry and implementation of State-led investment in areas where the commercial sector will not provide high-speed broadband. In other words, where it is not being provided commercially, the State will look at investing in that area. Other actions include the publication of a national digital strategy aimed at stimulating businesses and consumer demand, a review of radio spectrum policy and regulation to clarify the role of the State-owned assets infrastructure in the deployment of broadband services and the removal of barriers, including planning issues and road opening, which can impede investment.
The investment in broadband is significant from companies, including Eircom, which bring fibre to the cabinet in my constituency. This means there will be significant increases in fibre to the cabinet. This means the copper wire will continue to run from one's home to the telecommunications cabinet but there will be a significant increase in broadband in many homes throughout the country, depending on the distance from one's home to the cabinet. UPC is spending approximately €500 million on improving Internet connectivity throughout the country. There have been significant developments in private investment and more are expected.
We are not at the bottom of the league in Europe. I can provide the statistics if the Deputy seeks further detail, but we are in fact doing well. According to EUROSTAT, in 2011 throughout the 27 EU countries, some 94% of all enterprises with ten or more employees had access to the Internet, with 94% of small enterprises, that is, those with between ten and 49 employees had access. Some 99% of medium-sized enterprises, that is, those with up to 249 employees, had access, while 100% of large enterprises, that is, those with greater than 250 employees had access. In Ireland in 2012 up to 94% of all enterprises with ten or more employees had access to the Internet, while 93% of small enterprises had access and 98% of medium-sized enterprises had access. Fully 100% of large enterprises had access to the Internet. Notwithstanding all the issues we have, we are doing remarkably well and the national broadband plan and strategy is in place and is being funded. Private and commercial companies are also investing and participating in this plan.
I believe it should always be a national priority to have infrastructure in State hands. If the private sector is investing, it is for a good reason. The Minister of State, Deputy O'Dowd, referred to some figures. I will offer some further figures and perhaps the Minister of State can deny them or explain why there is a difference between them and the Forfás Cost of Doing Business in Ireland 2012 report, which compared the cost of broadband in various countries and found that the average price in Ireland was 7% higher than the OECD average and 27% higher than the euro area average. Ireland's Competitiveness Scorecard 2012, also published by Forfás, indicated that Ireland ranked poorly in terms of fibre connections and that it significantly lags behind other countries in terms of upgrading broadband access. There may have been a change since the report was produced but the report also stated that Ireland had only 0.5% fibre connection compared to Japan, where there is 61% connectivity, and South Korea, which has 57% connectivity, while the OECD average is 10.3%. The figures appear to contradict each other.
We all look forward to the realisation of the 2015 strategy, but by 2015 we will still need substantially greater investment than that which has already been proposed by private companies. This is where State funding needs to set in, especially once we move beyond the eastern coast. In rural areas there are small companies in small villages that are not getting proper access to fibre-based connections. State funding would make the future of these companies more feasible or at least allow them to complete on a level playing field with other companies located in some parts of this city and which have the best possible access. However, even in the city there are pockets that do not have the proper speeds required for doing business.
Before you reply, Minister of State, I will let Deputy Ó Fearghaíl in.
This is not an area in which I am particularly expert but we all accept the interconnectivity between broadband availability and employment generation. Three things arise for me: price, speed and availability. These are matters of major concern, as has already been highlighted by Deputy Ó Snodaigh. Can the Minister of State give us an indication of how the plan announced by the Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, in 2012 differs substantially from the previous metropolitan area networks, MANs, programme or does it differ significantly from it? Is the Minister of State optimistic that the type of roll-out of e-fibre we need to see in the coming months and years will take place expeditiously? Is the Minister of State satisfied that the agencies that should be involved and that should be in the foreground of assisting the Government, us and the commercial agencies in this process, including local authorities, for example, are not putting impediments in the way of the fast roll-out of e-fibre throughout the country?
The MANs project involved fibre optic investment in many locations throughout the country. In several places in the west, for example, and in other parts of the country the MANs were never lit up. This was because while the fibre might have been in the community there was no connectivity back through the country to Dublin or no proper connections. This meant it was in the ground and deemed to be a stranded asset and no one could actually use it, or, if one sought to use it, one would have had to pay up to between €6,000 and €10,000 per business connection. The Minister, Deputy Rabbitte, and the Department of Communications, Energy and Natural Resources have been active in respect of what they call lighting up the MANs. A significant number of MANs have been lit. In other words, they are active and are being used. We can get the Deputy the figures after the discussion today.
The second issue related to the question of business investment. If companies are in competition with each other then costs will come down. Let us consider the offers for mobile telephone, fixed landline or broadband connections. There is a good deal more competition now and it has been led by private investment. When businesses see an opportunity they will invest. It is in areas where no one will invest that State investment should be particularly considered. In communities where in the past there was no service it is incumbent on the State to ensure there is no regional or local variations in that respect.
Reference was made to jobs and enterprises and the Deputy provided several statistics. In terms of the percentage of all enterprises with ten or more employees with a mobile broadband connection to the Internet Ireland ranked 13th in the European Union. For enterprises with between ten and 49 employees Ireland ranked 13th for mobile broadband and for enterprises between 50 and 249 employees in terms of mobile broadband Ireland ranked 10th. Therefore in terms of mobile broadband we are well connected.
The other important point raised by the Deputy related to NewERA, the Fine Gael programme under which we campaigned during the general election and the Irish strategic infrastructure fund. One of the areas where there will be significant investment is broadband. NewERA will be working with the Department of Communications, Energy and Natural Resources in this regard. I expect there will be significant developments in respect of getting more efficient and faster broadband for more people, homes and businesses throughout the country. There is a table I can ask to have circulated showing where Ireland ranks in respect of the different types of broadband connections, if that is helpful.