High-value jobs need first-class service

Broadband networks - the high-speed telecommunications links that allow for the fast transfer of text, sound, image and video files - are widely recognised by both Government and industry as essential to the State's continuing economic growth.

Yet high-value jobs and the Republic's ability to continue to attract the quality firms that underpin the national economy, are under serious threat because of the lack of an adequate national broadband network.

Network development has been seriously hampered by piecemeal strategy, litigious and foot-dragging telecommunications operators, delayed legislation, weak regional policy, lack of competition, high costs and now, economic uncertainty.

The Republic has vast quantities of bandwidth due to the completion of two major transatlantic fibreoptic cable projects from Global Crossing (last year) and 360 Networks (last month).

But although capacity between New York and Dublin, or Dublin and Amsterdam, is cost-competitive, the price of a line to connect Dublin to Sligo remains several degrees more expensive. Companies here say costs approach prohibitive levels and, in some cases, act as a deterrent to e-business. But little competition exists to force prices down, although several operators now have fibre within the State and running to the North and across to Britain, including Cable & Wireless, NTL, Eircom, Esat, BT and Concert.

Many firms can't even get the lines they are seeking. In some cities, such as parts of Cork, the existing network cannot handle additional bandwidth demands. Other regions, such as most of Mayo and Donegal, lack fibre and, thus, are not in the running for high-technology jobs projects.

"The IDA can't sell the regions without infrastructure. But the telcos won't lay fibre for industry that isn't yet there," says one senior industry source.

A key broadband technology for small firms and consumers, DSL (digital subscriber line), remains a distant hope in the Irish market (see accompanying piece). And the collapse last month of wireless broadband company Formus means no carrier is offering alternative forms of broadband connectivity, although Eircom and Esat both hold wireless licences as well.

Also, the State has no "dark fibre" available now at all - fibre that is unlit and hence, designed to be managed by the purchaser rather than the carrier. Dark fibre allows more carriers to come in and offer their own range of services to customers, without having to add in the costs of paying a third party to manage the network.

While the Government specifically helped fund one segment of the broadband network, Ocean's Western Digital Corridor, because it was to offer dark fibre, the sale of Ocean placed the control of the network in Esat's hands, and Esat now offers it only as managed fibre. CIE also owns a private, dark fibre network that has been sitting unused for months, although it reaches into most of the regions.

Numerous other broadband projects have been funded with State and EU money, and are beginning to come on line. The Government has formulated a broad national development plan (NDP) for infrastructure development. But key players such as Eircom have not yet signed on completely to the NDP, leaving crucial gaps.

Dublin has a relatively sound network, says one analyst, but most of the rest of the State is weak, excepting Kilkenny, Limerick, Cork and Galway. Local authorities often fail to understand the relevance of having broadband networks pass through their regions and fail to campaign to bring networks through their own towns.

Privately, many State officials express concerns that broadband development internally has lumbered to a near standstill. Unless the snags are sorted out, the situation could begin to affect the perception of the Republic as an attractive location for companies, especially the high-value technology companies focused on research and development.

"We have to stay way up the food-chain in the context of jobs," says one senior Government official. "If Ireland wants to catch up, Ireland is going to have to spend money."