Choosing the right track at infrastructure crossroads

Once again, the State is at an infrastructural and, since the two are now thoroughly intertwined, economic crossroads. The choice is simple: either a serious vision of a tech-centric future based on a strong, cost-effective broadband infrastructure is offered to the Republic - and backed by Government and private industry - or Ireland Inc fades back into being a peripheral state constantly in catch-up mode.

The State's technological achievements have been, by any measurement, spectacular. But the challenge of ensuring the State continues to be a globally recognised contender in the technology sector, both as a European home for multinationals and, increasingly, an incubator for home-grown companies, is far more difficult.

Because of the two transatlantic cable projects from Global Crossing and 360networks, the State has international connectivity that is considered world class and highly competitive in terms of access and price. But that torrent of connectivity hits these shores and then narrows into a trickling faucet, so much so that the business community is still wondering where all that capacity is. Nationally, costs for fibre are very high and every other broadband access mode when compared to other nations.

The Republic also ranks at the bottom in Europe in the availability and pricing of Internet access modes for consumers and small businesses. Thus, when Mr Tom Kitt, minister of state with responsibility for international trade, remarked to foreign journalists in Germany recently that not just a single region but all of the Republic was like a Silicon Valley, businesses and consumers must have laughed mirthlessly.

The EU and Government have so far tended to approach key issues, like opening up the local loop, by threatening punishments rather than using win-win enticements that benefit both public and private sides. This is particularly odd for a Government that has demonstrated its understanding of the value of creatively motivating business to do what you'd like done.

Despite many good individual programmes and an innovative national development plan, the Republic lacks any overall vision for how to keep pushing out broadband capacity, particularly to the regions. It also lacks the teeth to back such plans with comprehensive legislative enforcement from the Office of the Director of Telecommunications Regulation (ODTR) and the planning authorities. This is because of continuing delays to the new Communications Act. Currently, no overarching planning authority exists to oversee infrastructure developments.

For the most part, the regions continue to complain about their isolation and lack of infrastructure and leading-edge projects, while making little attempt to understand and learn about technology and to format informed regional digital development plans. Instead, they tend to wait passively to be told what they should want by Government, and look for IDA Ireland to airdrop projects into their districts.

The two main telecommunications operators, Eircom and Esat, seem frozen and visionless as they wait to see how their futures develop - Eircom unsure of whether it will be divided and sold, and in the midst of an apparent 10 to 20 per cent redundancy programme; Esat rumoured to be on the block as owner British Telecom seeks to shed debt.

NTL's pullback and wireless broadband company Formus's sudden dissolution at the hands of its US parent have virtually eliminated the prospect of competition for consumer and business broadband access. Digital subscriber line (DSL) rollout is understood to be at a standstill within Eircom's DSL division, a cause for much disillusionment among staff. Digital television rollout is moribund.

Despite the arrival of Meteor, the State has some of the highest mobile phone charges in the world. Schools are wired at a very basic level but there is no comprehensive agenda for the absolutely central integration of IT skills into school curricula.

An inspired public and private sector must address all these areas. The State has led with some truly innovative public private partnerships, such as the Global Crossing deal, and it is time for more.

On the telecoms front, surely Eircom could and should be offered an enticement - such as the ability to offer a complete menu of digital television channels and services, especially given NTL's step back - in exchange for opening the local loop rapidly and completely, and dropping (drastically) the costs for access to same. The US has used such an approach successfully, giving local carriers access to the lucrative long-distance market in exchange for unbundling.

Additionally, the original proposal for unbundling at the time of the creation of the ODTR contains a provision for the creation of a national fund to help make unbundling happen - and such a fund could be enormously beneficial at this deadlocked moment. Unbundling is an incredibly fraught area as the entire European experience demonstrates. New, positive rather than punitive approaches are needed.

A national development authority should be created to streamline the infrastructure build-out process. A more complete and nuanced national broadband plan, which places real value on the social importance of universal national access, is also needed so that consumers and public organisations are not continuously an afterthought in the Government's mind.

Finally, the entire telecoms operators sector needs to move from thinking about what's in it for them, to what's in it for all of us. The State is too small to develop a competitive atmosphere on the scale of the US. But productive partnerships and networks, and the understanding that a cutting-edge infrastructure will bring benefits financially to all, could keep the Republic in the midst of a game it is just learning to play, and play well.