Forfás Event - Ireland’s Broadband Future-Policy for the Next Generation

The best economies have good telecommunications infrastructure across various platforms. At the other end of the continuum, less developed economies have poor infrastructure. The key questions for any aspiring knowledge society are: where are we now on that continuum and where do we need to be?

A small open economy like ours will only continue to prosper if we leapfrog from our current position to being on a par with the best of our international competitors. It is clear that we must improve both the availability of broadband as well as the bandwidths available to residential and smaller enterprises.

While ultimately this may require speeds of over 50/100 Mbps being delivered to every home, realistically, I think we need to plan for between 15-25 Mbps as an interim goal.

We need to quickly define the detailed steps required to reach that goal. The first steps in that process must be defining a policy and regulatory framework that will deliver a state of the art NGN which puts us among the leaders worldwide.

To make this a reality we will have to progressively move to IP based Next Generation Networks or NGN’s. NGNs represent 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.

This morning’s event is timely. Earlier this month I spoke at Comreg’s “Next Generation Networks Forum”. Although that event also addressed policy principles, its focus was on the regulatory framework of Ireland’s future telecommunications infrastructure. At that event, I took the opportunity to outline my policy principles governing NGNs in Ireland.

I repeat them here:

(1) e-Inclusion

Balanced regional development is a key priority for this Government. To achieve that everyone, irrespective of where they are should have access to high bandwidth services.

The knowledge worker cannot be confined by geographic location and should be free to live and work outside of the cities and towns. Our future should require networks to follow the knowledge worker rather than the other way around.

Rural development is also a high priority for Government. It must be underpinned by the availability of high bandwidth networks throughout the country.

(2) The Importance of Cooperation

Cooperation amongst Service Providers and Network Owners is also important. Since I spoke at the ComReg event on NGNs I am pleased to say there is growing evidence of a new spirit of co-operation. The promises of a new approach in this area appear to be becoming reality. Significant progress on LLU in the near future would encourage me even further and help instil further confidence in industry.

TIF members recently decided to develop a set of Guiding Principles for the Telecommunications Industry, for the evolution of the Next Generation Networks. This is a positive development and I welcome it.

(3) 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 become a barrier to competition and that is not acceptable. More competition is needed, not less.

I welcome and encourage platform-based competition. 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. Delays create serious 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 truly open access, underpinned by robust service level agreements where the consumer benefits directly from the efficiency gains generated by NGNs.

(4) Proportionate Regulation

Regulation must be applied in a proportionate, justified and technology-neutral manner. If a market is found to be effectively competitive, then regulation is redundant.
However, if the competitive conditions are not present continued regulation is necessary. Having regulation is important but even more important is that ComReg has the necessary powers to enforce regulatory decisions. Strong powers to prosecute are needed in order to encourage compliance among market players.

The Communications Regulation (Amendment) Bill, has now been passed by both Houses of the Oireachtas this week and is awaiting signature by the President. This will greatly strengthen the powers of the regulator, and provide ComReg with competition powers similar to those of the Competition Authority. This legislation will give the Regulator the tools necessary to deliver on its objectives.

(5) Investment Certainty

There must be confidence and certainty in the application of the new Regulatory Framework 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.

Despite the late start, the news on broadband is good.
The latest Quarterly report from ComReg shows there were more than 517,000 broadband customers by the end of 2006. The last quarter of 2006 saw the highest number of new subscribers added in any single period since the launch of broadband services in Ireland. Almost 81,000 subscriptions were added between October and December 2006.
This is a significant achievement when one considers that just over two years ago, the official number of broadband subscribers stood at 60,000.
All of this points to the need for a rapid decision on taking that giant leap forward in the immediate future. Time is running out. Other countries are moving ahead. Other countries have natural advantages over us so we have to act smarter.

We no longer live and work in slow moving and stable economies. Recent technology industry closures have brought home the reality of globalisation.

While for some, the last ten years might seem like an era of endless prosperity such closures remind us all of the importance of planning for the future. The new global reality of connectivity brings new competitors and, more importantly, potential new collaborators. We must be ready to respond positively and move quickly. We must have a telecommunications infrastructure that befits a first world information society and knowledge economy.

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 everywhere in Ireland.
We need to set the ambitious target of putting Ireland among the leaders worldwide. We need to look at the options to get us there and we need to make the decisions very soon.

We haven’t the luxury of endless philosophical discussions, task forces, interdepartmental groups and so on. The options facing us are, I believe, fairly straightforward: (straightforward to outline at least)

1. The status quo, continue as we are. That will be disastrous for us as a country, as an economy and as a people. It will rapidly see us returning to the darkest days of recession and poverty. We cannot contemplate it.
2. We decide that an NGN is a strategic national asset which should be provided by the State on an open access basis and with a regulated rate of return. The basic infrastructure is provided in the same way we provide, say, a road which everybody pays for on the same basis. This option will be expensive and undoubtedly will bring many, many challenges.
3. 3. We look at what we have, private and State owned and see if we can create an infrastructure which reaches all with open access for all players and a regulated rate of return for all those willing to collaborate in the national interest.

There are undoubtedly variations on these themes but the basic options are as outlined. We need to discuss them and any others and quickly decide where we want to go.

As Minister for Communications, I am determined that nothing will get in the way of this. We have some way to go to achieve the goals I mentioned but I believe they can be achieved.

I am keen that your counsel, with all relevant facts and evidence, is fed into this important policy area. The National Advisory Forum on Telecommunications, which will advise me by the end of the year, will consider your findings as it deliberates on Ireland’s best options for moving forward.

I wish you well today and I look forward to the outcome of this morning’s event.

Ends