Dáil Éireann Debate, Tuesday - 7 October 2014
569. Deputy Michael Healy-Rae asked the Minister for Communications, Energy and Natural Resources his views on correspondence (details supplied) regarding broadband services; and if he will make a statement on the matter. [37791/14]
Amharc ar fhreagraThe provision of telecommunications services, including broadband services, is a matter in the first instance for private sector service providers operating in a liberalised market, regulated by the Commission for Communications Regulation (ComReg). Developments in the broadband market over recent years means that there is now a choice of commercial operators offering broadband services over a diverse range of technology platforms throughout much of rural Ireland, including the area previously covered by the National Broadband Scheme. Details of commercial services available in each county can be found on a number of websites, including the websites of individual operators.
The State can only intervene to ensure access to broadband services in areas where the competitive market has failed to deliver such services, as in the case of the National Broadband Scheme (NBS). Following a competitive tendering process, my Department entered into a contract in late 2008 with Hutchison 3G Ireland Ltd (“3”) for the delivery of the NBS. The Scheme offered a basic and affordable broadband service to fixed residences and businesses located within certain designated rural areas where the extent of broadband coverage by commercial operators, at the time the Scheme was launched in 2008, was deemed to be inadequate. EU State Aid approval was granted for a scheme of limited duration. As a consequence, following a 68 month operational period, the Scheme expired on 25th August 2014.
“3” have confirmed that, following the expiry of the Scheme, they will continue to provide coverage throughout NBS areas on a commercial basis offering consumers the same choice of Broadband plans and tariffs as those offered to consumers outside of the NBS areas. Furthermore, they have also informed my Department of their plans to extend 4G coverage across all of the NBS Coverage Areas within the next three years.
The correspondence refers to customers previously served by the NBS satellite service, which was utilised in a small number of cases for technical reasons associated with the location of the premises. Digiweb, who provided the NBS satellite service on behalf of “3”, continue to offer broadband services on a commercial basis to these customers. My officials understand that Digiweb have recently contacted customers regarding an increase in tariff to rates similar to those charged by Digiweb outside of NBS areas. For this increase the majority of customers will receive increased download and upload speeds and a 37% increase in data allowance. A very limited number of customers affected by this tariff increase cannot receive the upgrade in speeds and data allowance as the technology deployed does not allow for an upgrade to their service. Digiweb have advised my officials that they are investigating a plan to transfer these customers to the newer technology.
The Government’s Statement of Priorities for the period 2014 to 2016 reaffirms our commitment to delivering a State-led broadband intervention in rural areas. Through the National Broadband Plan (NBP) the Government aims to ensure that high speed broadband is available to all citizens and businesses in Ireland. This is being achieved through measures designed to accelerate commercial investment and the development of a State-led intervention for non-commercial areas.
Under EU State Aid Guidelines Member States cannot intervene where commercial investors have plans to roll out services. A comprehensive mapping exercise is underway in my Department to identify those areas that require a State intervention. An initial list of areas has already been identified and includes 59 areas in County Kerry. I am also aware of extensive rollout of high speed broadband services in County Kerry by at least one commercial operator.
As part of the mapping process, an initial stakeholder consultation on certain technical aspects of the proposed Plan was launched in June with a deadline of 15th September. 31 submissions were received as part of this process and non-commercially sensitive versions of these responses will be published over the coming weeks.
I expect to publish the maps for public consultation later this year. These will include details of the areas requiring State intervention. The maps will be dynamic and will be subject to change if new commercial investments are announced in the future.
A further public consultation on a detailed intervention strategy will be launched in mid-2015.
EU State Aid clearance will be required for the State intervention. My Department will be working closely with the European Commission on this important aspect of the programme.
Finally, a detailed procurement process will have to be undertaken in order to select a potential preferred bidder(s) prior to commencing the roll out of high speed broadband services.
This complex and ambitious project is a key priority for Government and for my Department. It aims to conclusively address current connectivity challenges in a sustainable and meaningful way. Our goal is to ensure that quality broadband services are available to all citizens regardless of where they are located.
