ComReg Forum - NGN in Ireland

Today’s event is an important step in the journey towards Ireland’s next generation networks and I am glad to see all the stakeholders coming together to take part.

I don’t need to tell all the parties here how critical it is to our continued economic and social prosperity that we have a world-class telecommunication sector.

I have to tell you honestly that I think we are still some way off meeting this objective. A small island nation like ours will only continue to prosper if we leap-frog from our current position to being on a par with the best of our competitors not just in European context, but as benchmarked internationally.

To achieve this, we need to recognise that the future, for both business and consumers, lies in having competitive and very hi-speed broadband. While ultimately this may require speeds of over 50/100 Mbts being delivered to every home, today I think we need to plan for between 15-25 Mbts, as an interim goal.

To make this a reality we will have to progressively move to IP based Next Generation Networks.

Next Generation Generations or NGN’s represent an extreme convergence of technologies and of services.

The model of providing dedicated networks to deliver dedicated services will be turned on its head. Instead we will see every kind of technology being used to deliver every kind of service over a single network.

NGNs are therefore much more than just fibre; much more than just fixed networks. NGNs also embody mobile, nomadic, satellite and fixed wireless networks and technology platforms.

NGNs will see the convergence of a host of services formerly delivered by dedicated networks. For example;

• IP TV will be broadcast over NGNs.
• Telephony using voice over internet (VoIP) services will be conveyed in the same manner as data services.

A migration to NGN represents a giant leap for the communications sector.

As we migrate from existing legacy networks to NGNs, the implications for regulation, competition, investment and service delivery should not be underestimated. The issues are complex and many are still awaiting resolution across the world.

We in Ireland however, must be ready for the challenge. We have many “bandwidth hungry” consumers out there and we cannot afford to delay the development of a fully competitive market in NGNs.

We must plan ahead and think logically while also thinking creatively. Not only do I believe in open access, I also believe in opening our minds to the possibilities this challenge offers us.

There is enormous growth potential in this market. Commercial operators will naturally have to focus on growing market share. However, I believe the primary focus should be on growing the market. This, combined with a meaningful level of investment in infrastructure is the only way we can ensure a healthy future for the industry.

We must guard against the risks that could be associated with a move to an NGN environment. Specifically we must ensure that we do not replicate the problems of the past.

We need to ensure that Irish business and consumers have choice and that competitive products and services are being offered . It will will not be easy; it will require the active and positive engagement of all the stakeholders- industry, the regulator and Government.

We need to lift our game substantially. We need to move from where we are, fighting over the issues of the past rather than working towards the networks of the future.

Today’s forum offers us a chance to establish a set of core principles that can guide us in bringing about this migration in the best possible way for all of us.

Let me mention a few of these core principles that are of particular importance to me:

Firstly, everybody, irrespective of where they are should have access to high bandwidth services. The knowledge worker cannot be confined by geographic location. E-workers and businesses should be free to choose locations outside of traditional urban centres. We are a small country after all, and our demographics are unique We don’t have to tread the well-worn path to the capital city. The future will involve networks following the knowledge worker rather than the other way around.

Balanced regional development is a key priority for this Government. It is vital to rural development and the development of a knowledge society that NGNs be made available throughout the country.

Cooperation amongst Telco’s

We need a cultural change in the communications sector to meet my second principle--- cooperation between stakeholders. A change in current attitudes is required, as there has been a distinct lack of cooperation in, for instance, the matter of sharing masts and local exchange facilities. Let’s look to international examples in this area. If it can work elsewhere- why can’t it work here? Do we have to think now about regulation to enforce co-operation before we start on this journey.

The recent agreement by TIF members to a set of Guiding Principles for the Telecommunications Industry, for the evolution of the Next Generation Networks is a good start in avoiding this. If is possible to achieve, I would welcome industry wide support for these or comparable principles and so avoid the necessity for heavy handed regulation.

Competition and Open Access

While the communications market is fully liberalised it is not yet in a fully competitive state.

As we move towards NGN’s we must ensure that competition is facilitated to the maximum. There is a risk that NGNs could discriminate against competition and that is not acceptable.

More competition is needed not less.

Where infrastructure based competition exists, I welcome it. I acknowledge however, that this is not always possible and I want to see truly open access where this is the case. I am not interested in learning that new bottlenecks have been created on new networks.

I don’t want the Local loop unbundling situation replicated here. I don’t have to explain to this audience how delays in unbundling create serous economic and operational problems for operators and cause serious problems in the wider economy.

NGNs are a much bigger challenge than any single player can take on by themselves. Therefore, it is imperative that there is a level playing field for all competitors, through the provision of true open access, underpinned by robust service level agreements and that the consumer benefits directly from the efficiency gains generated by NGNs.

Regulation

This brings me to Regulation. Regulation is the key to making the collaborative model work. But it must be applied in a proportionate, justified and technology-neutral manner. Hence if a market is found to be effectively competitive, then regulation should be removed immediately and providers left to compete vigorously for customers.

However, if the competitive conditions have not changed and one of more players in that market remain dominant then the use of NGN---or any other technology for that matter--- does not alter the justification for that regulation.

This is a founding principle of the New Regulatory Framework. There must be confidence and certainty in its application if it is to attract investment for the long-term and to foster competition. There must be confidence amongst investors, certainty amongst industry, that business plans can be drawn up in a clear, transparent and predictable regulatory environment.

I have said previously that my preference is for light handed regulation. I believe regulation should be kept to the minimum necessary but unfortunately, it seems clear that the regulatory powers available to date are not proving sufficiently robust.

It is from this position that I brought forward the Communications Regulation (Amendment) Bill, which has been passed in the Seanad and has commenced in the Dáil. One of the main purposes of the Bill is to greatly strengthen the powers of the regulator, and provide ComReg with competition powers similar to those of the Competition Authority, in order to foster more LLU and more competition.

It is important that ComReg has the necessary powers to enforce regulatory decisions. Strong powers to prosecute are needed in order to encourage compliance among market players, especially the larger players.

The Bill is about equipping the regulator with the tools necessary to deliver on its objectives. The Bill will form an important part of the regulatory framework and I expect to have it enacted before Easter.

Investment & Broadband

The Bill is just one aspect of the Government’s telecom policy. Despite the late start, the news on Broadband is good. In addition to the Government investment in the MANs, the growth in dsl and cable, and the increasingly strong wireless growth have made a key contribution to the market.

When I took over as Minister for Communications in September 2004, I tried to emphasise and champion the needs of consumers across the range of my portfolio including the area of communications policy. I have championed the importance of broadband and its enabling technologies to our economy. I firmly believe broadband is a tool that has the potential to bring profound changes to our society.

That is why when I became minister I set a target of 400,000 connections by the end of 2006 and challenged the industry to aim even higher. I am pleased to say that the next official report from ComReg will show that the 400,000 target was met and so too was the challenge to industry to reach half a million by 2007. That report will show there were an estimated 510,000 broadband customers by the end of 2006.

I congratulate all those who helped us reach this milestone. It is a significant achievement when one considers that .just over two years ago, the official number for broadband subscribers stood at a little over 60,000 subscribers.

But we should not stop there. My new challenge to industry is to reach 700,000 by the end of this year. We cannot let a significant section of the country lag behind as the rest of us race on.

For that reason steering group of my Department and ComReg is currently finalising the scheme to bring a broadband service to parts of the country where the private sector will be unable to justify the commercial provision of broadband connectivity. The National Broadband Scheme (NBS) when it is fully rolled out will ensure that all reasonable requests for broadband from houses and premises in rural areas are met.

We all have our parts to play in broadband deployment and NGN rollout. The investment of over €200 million by my Department under the NDP 2000-2006 programme including the MANs programme. This investment has paved the way for the potential delivery of NGNs over fibre rings, especially in rural towns which could give Ireland a unique competitive edge by allowing Service Providers to realise the potential of NGNs in an accelerated timescale.

We must have a telecommunications infrastructure that befits a first world information society and knowledge economy. The Government is committed to Ireland being one of the leading knowledge economies in the world. A state-of-the-art telecommunications network will be the key infrastructure that will enable this and support information intensive industry and bandwidth hungry citizens, no matter what their location.

As Minister for Communications, I am determined that nothing will get in the way of this. . The ongoing difficulties in unbundling the local loop, despite it being a mandatory requirement, remains a frustration for all who want to see fair and open competition on a level playing field, leading to a greater choice for consumers. A speedy resolution of the discussions on LLU would assure everyone that a significant attitudinal change has taken place. It would give everyone confidence that real and significant progress is possible in the immediate future.

We have some way to go to achieve the goals I mentioned just now but I believe they can be achieved and that industry, the regulator and policy makers all have roles to play.

How best can we ensure this?

• We need all stakeholders at the table.
• We need to eliminate uncertainty in the regulatory framework.
• We need to provide confidence and certainty for investors and industry
• We need clearly regulated open access to the NGN network that facilitates real competition.

I believe the way to do this is for all sides to come together to address the opportunities and challenges NGNs can bring. To help achieve this, I intend to establish a National Advisory Forum to advise me on progress on a bi-monthly basis between now and then. The Forum will be charged with having a blueprint in place by the end of 2007. I hope you will use today’s event to start that process of engagement and cooperation

I wish you well in your deliberations today and I look forward to the combined efforts that will emerge from this event.

Thank you.

Ends