THE DEVELOPMENT of next-generation telecoms networks has been prioritised as an “area of action” in the short term by Minister for Enterprise, Trade and Innovation Batt O’Keeffe.
At a technology industry event in Cork last night, Mr O’Keeffe said his department and agencies under his control were “engaged in detailed discussions with all the relevant players” on how these networks could be built.
“I believe that investment in digital infrastructure and services is vital, and it is a priority for this Government,” the Minister said.
“Digital infrastructure and services have formed the bedrock on which all other sectors have been developed over the past decade.”
Babcock Brown, the former majority owners of Eircom, had sought State-support for a next-generation upgrade to its network. It had developed a proposal which would have delivered 25Mbit/sec broadband to 70 per cent of the population but would have cost €500 million.
The proposal was rejected by Minister for Communications Eamon Ryan, who said it was not in the State’s interest to back one technology or service provider.
The Telecommunications and Internet Federation (Tif), citing a study by consultants Analysys Mason, recently estimated it would cost €2.6 billion to build a next-generation network in Ireland.
Mr O’Keeffe’s speech at an IT@Cork event did not make any reference to who might fund the investment.
Industry players other than Eircom are known to be interested in collaborating with the former incumbent operator.
They are concerned, however, that Eircom would be able to escape regulation of its products by collaborating with smaller operators.
“We welcome ministerial attention on this subject,” said Ronan Lupton, chairman of Alto, the group that represents operators other than Eircom. “We would also welcome the formulation of a plan that can be executed in a timely fashion and includes all industry players.”
Eircom, which is now controlled by Singapore-based STT, has limited funding options as it is carrying net debts of €3.3 billion.
