Launch of 2nd Call for Proposals under the County and Group Broadband Scheme

Please Check Against Delivery

Marriott Johnstown House Hotel, Enfield, Co Meath - Tuesday 11 January 2005
Address by The Minister for Communications, Marine and Natural Resources, Noel Dempsey, T.D., at the Launch of the Second Call for Proposals under the County and Group Broadband Scheme
Good morning, and welcome to this launch of the Second Call for Proposals under the County and Group Broadband Scheme. The Scheme has been running since March last year, and over 50 proposals were submitted under the First Call, from community groups right across the country.

To date, 23 projects, covering a population base of approximately 20,000, have been approved. These projects will entail an investment of approximately €800,000 in broadband systems for smaller communities. Grant support of almost €350,000 has been approved to date.

There are representatives here today from some of those groups. They are here to give you their first-hand accounts of the efforts they put in, the difficulties they had to overcome, and the advice and knowledge they want to pass on to potential participants in the Scheme.

In the early part of 2002 the telecommunications industry was going through a bad patch, money for investment was hard to find, and the future of broadband in Ireland did not look very bright. The decision to build Metropolitan Area Networks in the major centres, in association with the local and regional authorities, was taken in the light of the private sectors reluctance to invest in broadband infrastructure.

I have to say that the MANs programme to date has been a resounding success. The networks have been built on time, under budget, and to the highest engineering and technical standards. The cooperation and assistance from the local and regional authorities has been tremendous, and we acknowledge their support and enthusiasm throughout the programme.

If imitation is the highest form of flattery, then the programme is flattered by the number of imitators internationally. Most EU States are now following this countrys lead.

The first 19 MANs are now completed, and commercial traffic is already being carried. The next seven are now under construction, and I am confident that they too will be completed in the shortest possible timeframe.

Three weeks ago I announced the next phase of the MANs programme.

Thirty-five regional towns are to get MANs in the early part of this year, and the plan is to eventually build high-speed broadband infrastructure in all the 92 regional towns of 1,500 population and over that do not have an adequate broadband provision. Again, the cooperation and assistance of the local and regional authorities is proving invaluable here.

This investment is not duplication, as incorrectly stated by some commentators. The networks are built to the highest international specification and support broadband speeds of up to 100,000 times the capability of the existing copper networks.

The cities and the larger towns are being dealt with, and my Department is pushing the broadband agenda as vigorously as possible. I am not resting there, however; I want every village and every rural community to have a broadband option there should be no home, office, school or library in Ireland that cannot get broadband real broadband that enriches the online experience.

The County and Group Broadband Scheme is a key link in the chain of broadband support initiatives. It offers even the most remote communities the chance of competing on level terms with the major cities. Broadband is the future of communications, and anyone who wants to be part of that future will need broadband.

Towns and villages with broadband will attract inward investment and offer untold opportunities for the people of those towns.

The old phrase that is much used by estate agents location, location, location now applies especially to where you can get broadband. Every village with broadband is a good location.

The industry is now beginning to respond to the need for broadband over 130 firms are now listed by Comreg as internet service providers. They are, of course, private companies operating in a liberalised market, and market forces will determine where they spend their money. The widely-dispersed population in much of the country involves a challenge for both Government and providers in ensuring a universal broadband service.

It is heartening, however, to see that after a very slow start, the number of broadband customers is now growing strongly, and has gone up from 30,000 to over 120,000 in the past twelve months. This dramatic rise indicates that there is a vast pool of potential customers out there who would jump at the chance of a broadband connection, if it was on offer.

As broadband becomes more widely available, the number of users will continue to rise. I have said it before and I will say it again here, I want to see at least 500,000 broadband users by 2006. Other countries have done it, and so can we.

There are many who would say that we grew up without broadband and it didnt do us a bit of harm. We grew up without mobile phones, digital television, motorways and all the trappings of a well-developed State, but the world has changed a great deal in the past few years.

Broadband is now the most useful tool in the box as regards commerce, education and social inclusion. It has quickly become the one piece of technology that we cannot live without. The future is broadband.

As you know, the Broadband For Schools project will bring broadband to every primary and post primary school in the country. Broadband will shape our childrens future in ways we can only dream about, offering instant access to the worlds reference libraries, and networking with other schools and colleges at the touch of a keyboard. Children who grow up with broadband in the classroom will come to expect it in the home, and there will be a knock-on effect that will eventually bring everyone into the world of broadband.

Arising from my review of the Group Broadband Scheme Ive opted to make a few changes for this round.

There is a key coordinating role for the local and regional authorities in the County and Group Broadband Scheme. Local officials know their areas, they know their people and they recognise the local needs. Through the regional and local authorities an advisory and assistance service will be available to draw up and co-ordinate proposals. Were also looking for regional, sub-regional, county and sub-county proposals under this round. We will also, of course, accept individual proposals.

The engagement of local and regional authorities should encourage project aggregation and lead to larger economies of scope and increased economies of scale. Ive also made the scheme more flexible and user friendly.

There is more discretion on the amount of grant-aid per project or groups of projects.

Grants will be paid faster.

Broadband providers can aggregate their proposals and Im looking to local authorities to take on more of a partnership and mentoring role.

I want to see more leveraging of local authority superstructure to facilitate more rapid broadband rollout under this round, for example water towers, street lighting and high sites.

I also want to encourage Chambers of Commerce and other national organisations to motivate and mobilize their memberships to support this scheme. Ive put aside €4million for this round of the scheme.

The word needs to be spread, however, - the money is available, the demand is there, the opportunity is now.

What is needed now is for the authorities to go out and meet the community and enterprise groups, chambers of commerce and cooperatives, and offer whatever encouragement and assistance they can to help these groups to become self-sufficient in broadband.

My officials are here today, and will answer any questions that you have about any aspect of the Broadband programme.

The door of opportunity is wide open. I want 2005 to be the year that the whole country moves closer to a broadband nation. You are the people that will help to make it happen.

Thank you.

Ends

Department of Communications, Energy and Natural Resources29-31 Adelaide Road, Dublin 2, Ireland
Tel +353-1-6782000 Fax +353-1-6782449
Version: 4.7 Daff