Broadband, who should invest??

[barrym]

Hi,

I came across this -

"IBEC-based Telecommunications and Internet Federation (TIF) has called on the Government to consider making a €5bn investment in Ireland’s telecoms infrastructure. Such an investment, it is envisaged, would deliver 100pc broadband access to all businesses and households across Ireland.
TIF says that at present the private sector is investing €600m a year in telecoms infrastructure.
....
In a report entitled Ensuring Broadband Ireland, TIF highlighted major hold-ups in the planning process because responsibility for broadband policy and planning is spread between various Government departments and local authorities"

Would I be correct in saying that there are a number of well-capitalised telecomm companies operating in Ireland who could easily invest this kind of money - IF they wanted to, or, if they were able to foresee a return?

The only thing the government needs to do is to ENSURE that local loop unbundling actually goes ahead by altering the legislation that presently is blocking progress. As a result of a number of decisions by the courts Eircom is able to kick almost all the pressure to open its network into touch - to some sort of arbitration.

Until the local loop is 'in play' at reasonable prices then 50% penetration, never mind anything higher, is not achievable.

Am I right?

Bye, Barry

[david]

Hey! You can't privatise an industry then ask for taxpayers' support!

[barrym]

Hey! You can't privatise an industry then ask for taxpayers' support!

Quite, exactly my point, the govt has already "earned" - euphemism for sold off public asset - over €2bn, if I recall correctly. They should get the legal situation under control.

Here in France where France Telecom was once renowned as the most backward of the old monopoly suppliers, a change of policy, designed to bring the country up to speed, means that LLU (local loop unbundling) is now mandated (and this in a situation where up to very recently the govt was still the major shareholder in France Telecom).

The result? I live in the backwoods, in a medium sized village of about 1,500 in an area 900km from Paris. I have 2Mb broadband and 'free' telephone calls in France for Eur32 a month. When the local exchange is totally LLU (later this year) I will have free calls Europewide for the same money, no minimum contract, from an alternative supplier, Neuf. FT's price for the 2Mb is 1/3 more expensive - they still charge the line rental, which I still have to pay but won't when LLU. Reports are that FT drops the line charge when LLU is available, but no free calls...., so I'll stay with Neuf.

That is what I call progress.....real pressure on the incumbant, no legal funny business. Neuf is one of 4 nationwide alternative suppliers, in fierce competition with one another. Some offer deals as low as Eur15 a month.

Bye, Barry

[cyberianpan]

In general ... at a minimum to enable a free market a state has to regulate & set standards ...

Currently the broadband market is the wild west. Not sure if ComReg & it's stormtroopers intend doing anything about it.

I think the state could enable a useful market by investing in infrastructure & then selling short term , virtual operator licenses ...

On top of everything it would help Dublin traffic - the current road digging regimes of the telcos are quite crazy.

Problem is - could we trust the Government to deliver ?

[barrym]

In general ... at a minimum to enable a free market a state has to regulate & set standards ...

Currently the broadband market is the wild west. Not sure if ComReg & it's stormtroopers intend doing anything about it.

I think the state could enable a useful market by investing in infrastructure & then selling short term , virtual operator licenses ...

On top of everything it would help Dublin traffic - the current road digging regimes of the telcos are quite crazy.

Problem is - could we trust the Government to deliver ?

Good question!

However, it would appear that the Gov doesn't believe in 'interfering' with the market, except when IBEC asks? :wink:

Having made the crazy decision to sell ALL of Eircom, it appears to have no coherent policy how to encourage development. There are at least 4 different govt. funded schemes to supply BB, apart from industry based schemes - schools, communities, MANs, etc., none of which are interconnected - either technically or in policy terms. For example, in a community I know well in West Cork, two schools on islands are separately connected via satellite to the schools BB, good for them, but the 'policy' of the Dept of Ed is that no other local facilities or people can be connected, it is a 'private' network!!
Each school connection is priced at over Eur6k per annum to the Dept, on top of the installation cost. In the immediate area there are three subsidised community BB schemes and a local co-op runs a wi-fi network with Internet via satallite!! How about that for non joined up in any sense of the word!!

The governments policy (if you could use such a word) appears to be based on Ministerial opportunities to make sexy sounding announcements, coupled with local vote getting 'proposals' - most of which are neither used or understood.

I saw recently that the IDA said that BB was no problem for incoming high techies. Fine, I suppose that is where the effort of Eircom et al is directed. Why then the IBEC report??

Bye, Barry

[david]

Competition, all about consumer choice.

Off-topic but relevant: http://www.rte.ie/business/2006/0220/airtricity.html

[barrym]

Competition, all about consumer choice.

Off-topic but relevant: http://www.rte.ie/business/2006/0220/airtricity.html

Only off topic in that the infrastructure element is different, otherwise exactly the same thing. ESB is being fattened up to be sold off, a la Eircom, hence the 'independent' regulator agrees to not allow wind energy to be connected to the grid on entirely spurious technical grounds. He must have had advice from the Dept of Ed!! (see my previous post)

I have no objection in principle to privatising public untilities, but I have a strong objection to them being sold off to line the pockets of everybody but the consumer. I expect that several 'advisors' from the banking, etc., sector have already been appointed to help the Minister decide how much the ESB can be sold for, with further fees to be collected for the 'placing'....

Bye, Barry