I propose to take Questions Nos. 137 and 138 together.
The Government’s National Broadband Plan, which I published in August 2012, aims to radically change the broadband landscape in Ireland by ensuring that high speed broadband is available to all citizens and businesses. This will be achieved by providing:
- a policy and regulatory framework that assists in accelerating and incentivising commercial investment, and
- a State-led intervention for areas where it is not commercial for the market to invest.
Since the publication of the Plan, investments by the commercial sector are under way and in some instances have been accelerated in both fixed line and wireless high speed broadband services. Commercial operators combined have either invested, or committed to invest, over €2 billion in their Irish networks, delivering high speed broadband to homes and businesses. For example:
- Eircom is rolling out a €400m investment in a Next Generation Access Fibre Network that offers speeds of up to 100Mbps. Service is already available to over 800,000 addresses, with planned coverage to reach 1.4m addresses by 2016.
- UPC has invested over €500m in upgrading its cable network. Over 700,000 homes can already access minimum broadband speeds of 120Mbps and up to 200Mbps. Businesses can access speeds of 500Mbps.
- ESB is engaged in a new project allowing a fibre network to be rolled-out on its existing electricity infrastructure. It is understood that discussions between ESB and Vodafone to form a new Joint Venture Company are at an advanced stage. The company has initial plans to construct a fibre network directly to 450,000 premises outside of Dublin and it is expected that details will be announced over the coming weeks.
- Mobile operators have launched 4G high speed mobile broadband services following ComReg’s multiband spectrum auction. There has also been continued investment by all operators in enhancing and broadening 3G services and network improvements.
- Fixed wireless operators are continuing to invest in high speed point-to-point wireless broadband.
- The broadcaster Sky has entered the broadband market, increasing choice for consumers.
This accelerated roll out of high speed services by the commercial sector means that the addressable area required by the State intervention has been reduced by 30% since the National Broadband Plan was launched. While the commercial developments are welcome the acceleration of investment is largely contained to cities and towns. The speeds that are available in these areas are demonstrably better than those that are available in more rural areas.
The State has previously intervened in the telecoms sector through the Metropolitan Area Networks (MANs) Programme, by constructing eight networks in Co. Cavan and Co. Monaghan. MANs networks were built in Bailieborough, Cavan, Cootehill and Kingscourt, County Cavan and in Carrickmacross, Castleblayney, Clones and Monaghan, County Monaghan. These networks are all currently in use by telecoms operators, who are making telecoms services available to businesses and citizens in Cavan and Monaghan.
On 25th April, I signalled the Government's commitment to a major telecommunications network build-out to rural Ireland, with fibre as a cornerstone of its investment under the National Broadband Plan. This commitment is a clear expression of Government’s determination to address the connectivity challenge in rural Ireland in a meaningful and sustainable way.
Central to the strategy will be a fibre build-out to locations in every county in the State identified as having no existing or planned enabling fibre network. It is intended that the fibre will be delivered directly to access points for homes and businesses, where service providers can utilise the fibre to provide high speed services to end users. The fibre build-out will also ensure that fibre is deployed to strategic locations on each route such as schools, business hubs and health facilities. The fibre build out will be part of an end-to-end strategy that will address all parts of Ireland that cannot access commercial high speed broadband services.
I have published a county-by-county list of towns and villages which have already been identified for a fibre build-out. This is an indicative list and is subject to the completion of the comprehensive mapping process currently under way. Further locations may be identified as this process continues. Similarly, it may be determined that some locations on the list will be addressed by the commercial sector and will therefore not require State intervention. Currently I envisage that a total of 38 areas in County Cavan and 36 areas in County Monaghan will be included in the proposed fibre build-out. The list is available on my Department's website www.dcenr.gov.ie.
In tandem with the fibre build-out, the Strategy will include measures to respond to aggregated community demand for services, and the provision of access services in the most remote areas where fibre rollout may be insufficient to stimulate commercial investment or may be cost-prohibitive.
Intensive design work is ongoing in the Department with a view to publishing an end-to-end implementation strategy later this year, together with the outcome of the mapping exercise which will identify the areas that require intervention. A full public consultation will take place once the strategy is published and EU State Aids clearance will be required for the intervention strategy once finalised. It is expected that the detailed procurement process will take place in 2015 with a view to commencing construction of the fibre network and provision of services as quickly as possible.
The EU Commission’s guidelines on state aid for high speed broadband infrastructure preclude member states from intervening in regions in which private investors have demonstrated plans to roll out their own infrastructure within the following three years. In this regard it is noted that at least one network operator has published a programme to roll out 20 fibre-based broadband networks in County Cavan and 17 such networks in County Monaghan by July 2016.
It is my intention to ensure that rural Ireland enjoys similar opportunities to urban areas by ensuring an end-to-end market intervention with fibre as a core component. In committing to a fibre build-out at the heart of this strategy, the Government is acknowledging that broadband is the key infrastructure of the 21st century.
