Committee Reports::Report No. 06 - Progress Report on the recommendations made in Broadband::01 February, 2006::Report
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Tithe an Oireachtais


An Comhchoiste um Chumarsáid, Muir agus Acmhainní Nádúrtha


An Séú Tuarascáil


Bonneagar ardluais leathanbhanda náisiúnta a sholáthar


[lena n-áirítear na costais ar úsáideoirí agus an cumas chun feidhmeanna Rialtais, Gnó agus Tráchtála a sholáthar tríd an mbonneagar ardluais leathanbhanda náisiúnta]


Márta 2006


Houses of the Oireachtas


Joint Committee on Communications, Marine and Natural Resources


Sixth Report


Progress Report on the recommendations made in the Second Report of the Joint Committee – Provision of a national high speed broadband infrastructure [including the costs to users and the potential to deliver Government, Business and Commerce functions through the national high speed broadband infrastructure]


March 2006


Contents


Chairman’s Preface


Acknowledgements


Considerations of the Joint Committee


Appendices


Appendix A Terms of Reference setting up the Joint Committee


Appendix B Terms of Reference setting up the ICT sub-Committee


Appendix C Members of the Joint Committee


Appendix D Members of the ICT sub-Committee


Appendix E Summary of the recommendations made in the Second Report of the Joint Committee


Appendix F List of recipients to whom the Joint Committee’s Second Report was sent


Appendix G Report of the Consultants engaged by the Joint Committee.


Chairman’s Preface

The Joint Committee on Communications, Marine and Natural Resources has a wide remit. However, the one area that has particularly exercised the Joint Committee is the rollout of broadband. This is due, in no small part, to the fact that the Joint Committee considers that the broadband must be regarded as key economic driver.


It is a very poor reflection on how Ireland has managed its transition to the knowledge economy, and to see how in the lifetime of this Dáil Ireland has fallen from the top of the league of ICT economies to where we’re now amongst the lowest in Europe. This is unsustainable and the Government must address the issues as a matter of the gravest urgency.


Recognising the importance of broadband to the Irish Economy, the Joint Committee engaged in the largest single consultative process with stakeholders. This resulted in the Joint Committee’s Second Report and at the launch, in March 2004, it was clearly set out that what distinguished an Oireachtas report from other reports was that the recommendations made in an Oireachtas report could be reviewed by the Joint Committee to see what progress, if any had been made in the implementation of the Joint Committee’s recommendations. Having conducted such a review it is safe to conclude that progress has been almost non-existent and where there has been progress it has been ‘in spite of’ rather ‘due to’ proactive management and policies being pursued by the major players to the debate.


Therefore, as Chairman of the Joint Committee I am pleased to see that the Joint Committee have agree to publish this report as, in my opinion, it will have to act as a ‘wake-up call’..


In closing I would like to extend my appreciation to the other members of the Joint Committee, Deputies Thomas Broughan, Bernard J. Durkan, Martin Ferris, Dr. Dermot Fitzpatrick, Peter Kelly, Tom McEllistrim, Denis O’Donovan, Fiona O’Malley, John Perry, Eamon Ryan together with Senators Michael Finucane, Brendan Kenneally, Marc MacSharry and Kathleen O’Meara for their commitment, dedication and the expertise that they brought to the considerations of the Joint Committee which has led to the preparation of this Report.


I would also like to record thanks to the staff of the Houses of the Oireachtas, the staff in the Office of the Editor of Debates, the staff in the Broadcasting Unit, the sound engineers, the Director of Committees, Mr. Art O’Leary, the Deputy Director, Mr. Padraic Donlon, the Clerk to the Committee, Mr. Ronan Lenihan and all the staff of the Committee Secretariat in particular, Mr. Peter Malone, Mr. David Alwright and Ms. Siobhan Murtagh for all their hard work and assistance to the Members in bringing this report to finality.


Noel O’Flynn T.D.


Chairman of the Joint Committee on Communications,


Marine and Natural Resources


March, 2006


Acknowledgements

The Joint Committee wishes to thank Ms. Sadhbh McCarthy and Mr. Simon Nugent for the work undertaken, when as the consultants engaged to assist the ICT sub-Committee, they produced a comprehensive report for the ICT sub-Committee’s consideration.


Considerations of the Joint Committee

In March of 2004, the Joint Committee on Communications, Marine & Natural Resources, published its Second Report “Provision of a national high speed broadband infrastructure [including the costs to users and the potential to deliver Government, Business and Commerce functions through the national high speed broadband infrastructure].”


The preparation of the report was the result of an extensive consultation process. This permitted the opportunity to interact with and question a wide variety of experts. It resulted in both oral and written evidence being submitted from a wide range of parties interested in the area of broadband and the delivery of Government, business and commerce functions via broadband. The range of participants resulted in the most comprehensive examination of the broadband market in Ireland.


The report was intended to serve a number of purposes. It brought together for the first time, on the issue of a national high-speed broadband network, the detailed submissions and recommendations of a wide range of experts, interested parties, industry representatives and Government Departments. In doing so the Joint Committee furthered the understanding and level of debate on this key competitiveness issue. In addition, the report outlined a number of the main requirements for progress and recommended a way forward in developing a national high-speed broadband network. Finally, the report highlighted the critical importance that broadband was likely to have in ensuring a balanced regional development, in providing communications resources for socially disadvantaged groups in our society and in limiting the effect of geographic isolation.


Section One of the Joint Committee’s Second Report contained the body of recommendations that the Joint Committee made. These recommendations were loosely grouped under the three over-arching themes that emerged ‘Planning to succeed’, ‘Market Failure’ and ‘Broadband Usage’. Section Two of the Report summarised, under seven chapters, what the Committee considered were the key comments and observations of the debate. The Joint Committee reproduce (at Appendix D) a summary of the recommendations made.


At the launch of the Report it was advised that the Joint Committee would, at a future date, revisit the report to ascertain what progress, if any, had been made on the recommendations made in the Report.


The Joint Committee agreed to engage consultants to assist the members of the ICT sub-Committee to review the progress made on the implementation of the recommendations made in the Joint Committee’s report. The consultant were requested to review the technological advances made in developing alternative platforms for the delivery of Broadband and the progress, if any, in the implementation of the recommendations made in the Second Report of the Joint Committee. The report of the consultants is published, in full, as an Appendix to this report.


The Joint Committee wishes to place on record its view that there has been a lack of a Government policy response that indicates that the Government gives this key economic imperative the attention required. The Joint Committee holds the view that the universal provision of affordable broadband is a key economic imperative to Ireland being a knowledge based economy. The Government must, in the opinion of the Joint Committee, accept that this is a key policy issue and that it requires the full and concentrated attention of the Government.


The Joint Committee are of the opinion that there has been inaction in implementing the recommendations made by the Joint Committee in its Second Report. This concern is added to by virtue of the fact that neither the Minister nor the Department have discussed with the Joint Committee the recommendations which the Joint Committee made in its Second Report. This, in the opinion of the Joint Committee, would have been an advantage to the Minister as he could have engaged the members of the Joint Committee in a debate on the policy, or policies, which the Minister considers should be pursued.


In light of the report of the consultants and the discussions which the ICT sub-Committee and the Joint Committee have engaged in, the Joint Committee decided that the report of the consultants who were engaged should be published in full and that the Joint Committee should list a series of questions which the Joint Committee considers the Government and the major players in the broadband debate must answer.


The Joint Committee is conscious that there are a number of parties to the broadband debate. However, the Joint Committee considers that, in reality, there are three main elements; the Government, the Regulator (ComReg) and the incumbent fixed-line operator (Eircom). It is the view of the Joint Committee that, in the main, the question of why broadband take up, supply, coverage and price are in such a ‘derelict’ state, is due to that failure of Government Policy, Regulatory effectiveness and the attitude of Eircom.


Notwithstanding that Eircom is an independent private company, it does have a universal service obligation. While acknowledging the position of Eircom, the pace and almost total lack of Local Loop Unbundling (LLU) is considered to be a roadblock that must be addressed in the national interest.


Therefore, the Joint Committee have formulated the following series of questions that need to be addressed.


  1. What are the exact and explicit policies, if any, which have been brought forward to address and reduce the rural and social 'digital divide’?
  2. What exact use has been made of the MAN’s up to end of 2005?
  3. What exact use has been made of the MAN’s since January 2006?
  4. What exact use is proposed will be made of the MAN’s to the end of 2006?
  5. What targets, management and measurement metrics, follow up, monitoring, and reporting is to be made in regard to the MAN’s project?
  6. What is the reason why the development of the MAN’s has involved so little use of existing fibre assets in the ground?
  7. What backhaul fibre assets in State hands (ESB, Bord Gáis and Iarnrod Éireann) are being used, in a co-ordinated manner, so as to facilitate competition on long distance data transmission?
  8. What is the number of actual projects that have been approved for assistance under the group broadband scheme to the end of 2005?
  9. What, to the end of 2005, is the number of projects approved for assistance under the group broadband scheme that have been started?
  10. What, to the end of 2005, is the number of projects approved for assistance under the group broadband scheme that have been completed?
  11. What, since the start of 2006, is the number of projects that have been approved for assistance under the group broadband scheme?
  12. What is the target for the take up under the group broadband scheme?
  13. What access does ComReg have to information on the state of the Eircom network?
  14. What validation does ComReg undertake having regard to the veracity of the information that Eircom supplies in relation to its network?
  15. What specific policy is in place for the development of demand for broadband services?
  16. In regard to recommendation one of the Joint Committee’s Second report – the definition of what constituted broadband [a service that provides at least 512kb connectivity and sets as a target 5Mps connectivity by 2006 with widely available 10Mps connectivity in 2008 being the further target] – what, if any, definition has been set by Government and what definition does Eircom have?
  17. In regard to recommendation one of the Joint Committee’s Second report, the definition of what constituted broadband, if no definition has been set by Government, why has this not been set? Further, have Eircom and/or ComReg set a definition of what constituted broadband?
  18. Has the Government developed a national broadband infrastructure plan?
  19. Has the Government updated the national broadband infrastructure strategy as detailed in New Connections?
  20. Has the Government developed a policy that recognises and encourages a partnership role for the private sector and which maps out, in detail, implementation plans, timeframes and responsibilities agreed to?
  21. If the Government does not plan to develop a policy to work in partnership with the private sector, why is this position being adopted?
  22. Is the resaon that the Government has not appointed a single Minister of State with cross department responsibility for the rollout of a national broadband infrastructure and the development of e-Government services due to the fact that this proposal did not recognise the natural split between responsibility for services (the development for e-Government) and responsibility for technical and regulatory issues (the rollout of a national broadband infrastructure)?
  23. What policy has the Government developed to encourage closer co-operation between the Government, the telecoms industry and the end-users of broadband services?
  24. Has the Government mandated that all national, regional, county and city development plans incorporate the provision of broadband infrastructure within such plans?
  25. What Government policy is there to ensure that all new developments are ‘future-proofed’ for broadband?
  26. What are the Government policies for addressing how to connect the end user, typically a residential or small business user, to the backhaul network?
  27. What directions, policy or otherwise, have the Government or the Minister given to ComReg in relation to achieving Local Loop Unbundling?
  28. Has ComReg requested legislative powers, policy direction or otherwise to assist ComReg in completing LLU in the shortest timeframe?
  29. What powers or policy direction does ComReg require so that LLU is completed in the shortest timeframe?
  30. What Government policies have been introduced to widen the ‘reach’ of broadband technologies?
  31. Has the Government restored the CAIT programme?
  32. What policies have the Government to address the community sector?
  33. What policies has the Government in place to ensure that citizens have the skills necessary to make use of what universally available and affordable broadband can deliver
  34. What is the Government’s policy to encourage business to increase their usage of broadband technologies?
  35. Has any examination been made as to the potential for the Government to use broadband?

The Joint Committee proposes to review the questions posed with the Minister, ComReg and Eircom.


The report of the Consultants is reproduced in Appendix F


Appendix A

Joint Committee on Communications, Marine and Natural Resources Orders of Reference

Dáil Éireann on 16 October 2002 ordered:

    1. That a Select Committee, which shall be called the Select Committee on Communications, Marine and Natural Resources consisting of 11 members of Dáil Éireann (of whom 4 shall constitute a quorum), be appointed to consider -
      1. such Bills the statute law in respect of which is dealt with by the Department of Communications, Marine and Natural Resources;
      2. such Estimates for Public Services within the aegis of the Department of Communications, Marine and Natural Resources; and
      3. such proposals contained in any motion, including any motion within the meaning of Standing Order 157 concerning the approval by the Dáil of international agreements involving a charge on public funds,

      as shall be referred to it by Dáil Éireann from time to time.


    2. For the purpose of its consideration of Bills and proposals under paragraphs (1)(a)(i) and (1)(a)(iii), the Select Committee shall have the powers defined in Standing Order 81(1), (2) and (3).
    3. For the avoidance of doubt, by virtue of his or her ex officio membership of the Select Committee in accordance with Standing Order 90(1), the Minister for Communications, Marine and Natural Resources (or a Minister or Minister of State nominated in his or her stead) shall be entitled to vote.
    1. The Select Committee shall be joined with a Select Committee to be appointed by Seanad Éireann to form the Joint Committee on Communications, Marine and Natural Resources to consider -
      1. such public affairs administered by the Department of Communications, Marine and Natural Resources as it may select, including, in respect of Government policy, bodies under the aegis of that Department;
      2. such matters of policy for which the Minister for Communications, Marine and Natural Resources is officially responsible as it may select;
      3. such related policy issues as it may select concerning bodies which are partly or wholly funded by the State or which are established or appointed by Members of the Government or by the Oireachtas;
      4. such Statutory Instruments made by the Minister for Communications, Marine and Natural Resources and laid before both Houses of the Oireachtas as it may select;
      5. such proposals for EU legislation and related policy issues as may be referred to it from time to time, in accordance with Standing Order 81(4);
      6. the strategy statement laid before each House of the Oireachtas by the Minister for Communications, Marine and Natural Resources pursuant to section 5(2) of the Public Service Management Act, 1997, and the Joint Committee shall be so authorised for the purposes of section 10 of that Act;
      7. such annual reports or annual reports and accounts, required by law and laid before either or both Houses of the Oireachtas, of bodies specified in paragraphs 2(a)(i) and (iii), and the overall operational results, statements of strategy and corporate plans of these bodies, as it may select;

        8. Provided that the Joint Committee shall not, at any time, consider any matter relating to such a body which is, which has been, or which is, at that time, proposed to be considered by the Committee of Public Accounts pursuant to the Orders of Reference of that Committee and/or the Comptroller and Auditor General (Amendment) Act, 1993;


        Provided further that the Joint Committee shall refrain from inquiring into in public session, or publishing confidential information regarding, any such matter if so requested either by the body or by the Minister for Communications, Marine and Natural Resources; and


      8. such other matters as may be jointly referred to it from time to time by both Houses of the Oireachtas,

      2. and shall report thereon to both Houses of the Oireachtas.


    2. The quorum of the Joint Committee shall be five, of whom at least one shall be a member of Dáil Éireann and one a member of Seanad Éireann.
    3. The Joint Committee shall have the powers defined in Standing Order 81(1) to (9) inclusive.
  3. The Chairman of the Joint Committee, who shall be a member of Dáil Éireann, shall also be Chairman of the Select Committee.”.

Seanad Éireann on 17 October 2002 ordered:

    1. That a Select Committee consisting of 4 members of Seanad Éireann shall be appointed to be joined with a Select Committee of Dáil Éireann to form the Joint Committee on Communications, Marine and Natural Resources to consider –
      1. such public affairs administered by the Department of Communications, Marine and Natural Resources as it may select, including, in respect of Government policy, bodies under the aegis of that Department;
      2. such matters of policy for which the Minister for Communications, Marine and Natural Resources is officially responsible as it may select;
      3. such related policy issues as it may select concerning bodies which are partly or wholly funded by the State or which are established or appointed by Members of the Government or by the Oireachtas;
      4. such Statutory Instruments made by the Minister for Communications, Marine and Natural Resources and laid before both Houses of the Oireachtas as it may select;
      5. such proposals for EU legislation and related policy issues as may be referred to it from time to time, in accordance with Standing Order 65(4);
      6. the strategy statement laid before each House of the Oireachtas by the Minister for Communications, Marine and Natural Resources pursuant to section 5(2) of the Public Service Management Act, 1997, and the Joint Committee shall be so authorised for the purposes of section 10 of that Act;
      7. such annual reports or annual reports and accounts, required by law and laid before both Houses of the Oireachtas, of bodies specified in paragraphs 1(a)(i) and (iii), and the overall operational results, statements of strategy and corporate plans of these bodies, as it may select;

        8. Provided that the Joint Committee shall not, at any time, consider any matter relating to such a body which is, which has been, or which is, at that time, proposed to be considered by the Committee of Public Accounts pursuant to the Orders of Reference of that Committee and/or the Comptroller and Auditor General (Amendment) Act, 1993;


        Provided further that the Joint Committee shall refrain from inquiring into in public session, or publishing confidential information regarding, any such matter if so requested either by the body concerned or by the Minister for Communications, Marine and Natural Resources;
        and


      8. such other matters as may be jointly referred to it from time to time by both Houses of the Oireachtas,

      2. and shall report thereon to both Houses of the Oireachtas.


    2. The quorum of the Joint Committee shall be five, of whom at least one shall be a member of Dáil Éireann and one a member of Seanad Éireann.
    3. The Joint Committee shall have the powers defined in Standing Order 65(1) to (9) inclusive.
  2. The Chairman of the Joint Committee shall be a member of Dáil Éireann.”.

Appendix B

Joint Committee on Communications, Marine and Natural Resources
Order Establishing a sub-Committee 27 November 2002

  1. “That-
    1. a sub-Committee (to be called the sub-Committee on Information Communication Technology) be established to consider issues in relation to information communications technology which are referred to it, from time to time, by the Joint Committee
    2. the sub-Committee shall report to the main Committee not later than three months from the date of any matter being referred to it ;.
    3. the sub-Committee shall consist of 7 Members:
    4. the quorum of the sub-Committee shall be three,
    5. in relation to the matters specifically referred to it in paragraph (a) above, the sub-Committee shall have only those functions of the Joint Committee which are set out in sub-paragraphs (2)(a)(i) and (ii) (Dáil) and in sub-paragraphs (1)(a)(i) and (ii) (Seanad) of the Joint Committee’s Orders of Reference 1 ;
    6. the sub-Committee shall have all the powers of the Joint Committee, namely, those contained in Standing Order 81(1), (2) and (4) to (9) (Dáil) and in Standing Order 65 (1), (2) and (4) to (9) (Seanad) 1 : provided that the powers to print and publish evidence, to travel and to engage persons with specialist or technical knowledge shall, in each case, be subject to the approval of the Joint Committee.”

Appendix C

List of Members of the Joint Committee


Deputies:


Thomas P. Broughan (Lab)


Bernard J. Durkan (FG)


Martin Ferris (SF)


Dermot Fitzpatrick (FF)


Peter Kelly (FF)


Thomas McEllistrim (FF)


Denis O’Donovan (FF)


Fiona O’Malley (PD)


Noel O’Flynn (FF) (Chairman)


John Perry (FG) (Vice-Chairman)


Eamon Ryan (GP)


Senators:

Michael Finucane (FG)


Brendan Kenneally (FF)


Marc MacSharry (FF)


Kathleen O’Meara (Lab)


Appendix D

List of Members of the sub-Committee on Information Communication Technology


Deputies:


Noel O’Flynn (FF) (Chairman)


Denis O’Donovan (FF)


Fiona O’Malley (PD)


Bernard Durkan (FG)


Tommy Broughan (Lab)


Eamon Ryan (GP)


Senators:


Brendan Kenneally (FF)


Appendix E

Summary of the Recommendations made in the Second Report of the Joint Committee.

The Joint Committee’s Second Report the Joint Committee made 12 recommendations under the three over-arching themes of ‘Planning to succeed’, ‘Market Failure’ and ‘Broadband Usage’.


Under the Theme ‘Planning to succeed’ the Joint Committee made six recommendations:


  1. Defines broadband as a service that provides at least 512kb connectivity and sets as a target 5Mps connectivity by 2006 with widely available 10Mps connectivity in 2008 being the further target.
  2. Develop a workable national broadband infrastructure plan. The current national broadband infrastructure strategy as detailed in New Connections needs to be updated, a role for the private sector needs to be mapped out and detailed implementation plans, timeframes and responsibilities need to be agreed.
  3. Appoint a single Minister of State with cross department responsibility for the rollout of a national broadband infrastructure and the development of e-Government services.
  4. Encourage closer co-operation between the Government, the telecoms industry and the end-users of broadband services.
  5. Mandate that all national, regional, county and city development plans incorporate the provision of broadband infrastructure with such plans.
  6. Ensure that all new developments are ‘future-proofed’ for broadband.

Under the Theme ‘Market Failure’ the Joint Committee made two recommendations:


  1. Focus on “bridging of the first mile” as the first key policy issue.
  2. Establish the proposed Management Service Enterprise (MSE) to ensure all existing broadband assets are put to full use.

Under the Theme ‘Broadband usage’ the Joint Committee made four recommendations:


  1. Introduce measures to widen the ‘reach’ of broadband technologies.
  2. Improved broadband access necessitates the skills to make use of it
  3. Encourage business to increase their usage of broadband technologies.
  4. Fully examine the potential of Government to use broadband.

Appendix F

List of recipients to whom the Joint Committee’s Second
Report was sent

  1. Oireachtas Joint Committee the Environment, Heritage and Local Government.
  2. Oireachtas Joint Committee on Education and Science.
  3. Án Taoiseach Bertie Ahern
  4. Tánaiste Mary Harney, Department of Enterprise, Trade and Employment,
  5. Minister Dermot Ahern, Department of Communications, Marine and Natural Resources.
  6. Minister Martin Cullen, Department of Environment, Heritage and Local Government.
  7. Minister Joe Walsh, Department of Agriculture and Food.
  8. Minister Éamon Ó Cuív, Department of Community, Rural and Gaeltacht Affairs.
  9. Minister Michael Smith, Department of Defence.
  10. Minister Noel Dempsey, Department of Education and Science.
  11. Minister Charlie McCreevy, Department of Finance.
  12. Minister Brian Cowen, Department of Foreign Affairs.
  13. Minister Micheál Martin, Department of Health and Children.
  14. Minister Michael McDowell, Department of Justice, Equality and Law Reform.
  15. Minister Mary Coughlan, Department of Social and Family Affairs.
  16. Minister Seamus Brennan, Department of Transport.
  17. Mr. Dermot Gallagher Secretary General Department of Foreign Affairs.
  18. Ms. Julie O’Niell, Secretary General Department of Transport.
  19. Mr. Dermot McCarth,y Secretary General Department of Taoiseach.
  20. Mr. Paul Haran, Secretary General Department of Enterprise, Trade and Employment.
  21. Mr. John Hynes, Secretary General Department of Social and Family Affairs.
  22. Mr. Timothy Dalton, Secretary General Department of Justice, Equality and Law Reform.
  23. Mr. Michael Kelly, Secretary General Department of Health and Children.
  24. Mr. Tom Considine, Secretary General Department of Finance.
  25. Mr. Niall Callan, Secretary General Department of Environment, Heritage and Local Government.
  26. Mr. John Dennehy, Secretary General Department of Education and Science.
  27. Mr. David O’Callaghan, Secretary General Department of Defence.
  28. Mr. Gerry Kearney, Secretary General Department of Community, Rural and Gaeltacht Affairs.
  29. Mr. Eamon Molloy, Assistant Secretary Department of Communications, Marine and Natural Resources.
  30. Mr. Brendan Tuohy, Secretary General Department of Communications, Marine and Natural Resources.
  31. Mr. John Malone, Secretary General Department of Agriculture and Food.
  32. Mr. Philip Furlong, Secretary General Department of Arts, Sports and Tourism.

Appendix G

Report of the Consultant to the Joint Committee

1 Key to subparagraphs of main Committee’s Orders of Reference referred to: (i)= public affairs administered by Departments; (ii)=matters of policy under Ministers’ responsibility; (iii)=bodies which are partly or wholly funded by the State; (iv)=Statutory instruments; (v)=EU Legislation (vi)=Strategy Statements (vii)=Annual reports required by law to be laid before the houses (viii)=other matters referred by the Dáil/Seanad.


1 Key to paragraphs of Dáil/Seanad Standing Orders referred to: (1)= take evidence; (2)= invite submissions; (3)=establish sub-committees; (4)=draft legislative change; (5),(6)=meet Ministers re policy/proposed legislation; (7)=meet principal office holders in State Bodies; (8)= consultants; (9)=travel.
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