Next Generation Broadband 'Essential' Hears Conference

Tuesday, 12 October 2010 10:25

Written by Noel Cotter

The Telecommunications and Internet Federation (TIF), the IBEC group that represents the telecoms industry, today said that notwithstanding current financial pressures, investment in next generation broadband networks must remain a priority.

The call was made at the group's annual conference in Dublin Castle, which was addressed by Minister for Communications, Energy and Natural Resources Eamon Ryan and European Commissioner for the Digital Agenda Neelie Kroes.

The group said that, given the changed economic environment, a new approach was required to maximise the benefit of public and private sector investment, with a view to supporting the creation of a Smart Economy. In particular, TIF called on Government to greater incentivise investment in new broadband networks and said that ComReg needed to offer clarity and consistency in its approach to regulating these networks.

Speaking at the conference, TIF director Tommy McCabe said: “Numerous government reports highlight that a state of the art telecommunications infrastructure is essential for the success of the smart economy. However, the investment case is currently difficult to justify.

"We must work to deploy high speed broadband networks in all parts of Ireland, not just in pockets of high density urban areas. However, a recent TIF report estimated that a national NGN broadband network would cost around €2.5bn to build and would take 20 years of revenue just to repay this cost. To justify the business case, the industry must work together; public policy and regulation must be supportive; and the value distribution/net neutrality debate needs to be addressed. While resolving these issues is not sufficient on its own, it is a necessary first step.

“It is essential that the Government and the Regulator find a way to reduce the costs and risks associated with such a huge investment. We are confident that such an approach will enable Ireland to secure a world-class next generation network.

"Amidst the worst recession in the history of the state, Ireland's recovery will be led by a vibrant business sector. The telecoms sector is central to the development of such an enterprise-driven environment. At present, the industry contributes €4bn to the Irish economy and employs over 15,000 people. This does not include the numerous other ICT and non-ICT industries that rely on a modern telecoms infrastructure to survive."