If National Broadband Plan will cost 60pc more, do we need a new plan?

If National Broadband Plan will cost 60pc more, do we need a new plan?

 

Ireland’s troubled intervention plan for broadband has hit some very serious speed bumps.

Ireland’s National Broadband Plan (NBP), geared to make Ireland the fibre testbed of Europe, is unravelling before our eyes.

The plan, costed at between €500m and €1bn (no one was ever clear on the figure), is now likely to cost 60pc more than what the politicians and civil servants predicted.

This is down to the cost of accessing Eir’s poles and ducts.

Dancing at the crossroads

The plan began with the best of intentions, and its coordinators, in their zeal, worked hard to make sure there were no gaps, no room for tribunals down the line, or any potential for accusations of favourable treatment for operators in the jealously contended race.

Its scope was vast. It aimed to bring a minimum of 30Mbps broadband to 750,000 postal addresses, 1.8m citizens, 96pc of the nation’s land mass and along 100,000km of road. An initial stimulus package of €275m was approved by Government up to 2020.

The first sign that the NBP, in its initial shape, was falling apart? The news that it was to be delayed, and that the final winners from the shortlist of Eir, Siro and Enet wouldn’t be announced in June 2017 as planned. Instead, it would be potentially delayed to late 2017, with construction starting in 2018, and the final citizens on the wrong side of the digital divide getting connectivity in 2023. Guess what? It is nearly late 2017!

The next sign that the plan was changing came in April when Communications Minister Denis Naughten, TD, signed a deal with Eir to target 300,000 homes in the intervention area – 890 communities – as part of a €200m deal with fibre on a commercial basis. This reduced the scope of the remaining plan to 542,000 premises, for 990,000 citizens (or 21pc of the population). The move created consternation among rival operators because it left them with the harder-to-reach areas and the feeling that Eir was gifted the low-hanging fruit.

Read the full story here. siliconrepublic.com