2006 Broadband Benchmarking Update by Forfás

thebman

Much of this was referenced in an article in the Irish Independant's technology supplement today.

http://www.forfas.ie/news.asp?page_id=387

Key Findings

Take-up
As of Q2 2006, Ireland ranked 24th out of 32 countries, up one place on its Q2 2005 position. Broadband penetration in Ireland was 9.2 percent in Q2 2006, significantly behind the OECD average of 15.5 percent. Although broadband take-up by medium-sized firms in Ireland increased from 62 percent in January 2005 to 71 percent in January 2006, the EU-25 average is 88 percent. Broadband take-up by small-sized firms in Ireland rose from 43 percent in January 2005 to 57 percent in January 2006 but the EU-25 average is 72 percent.

Prices
For entry-level DSL, Ireland compares well on price relative to the EU-15, ranking 3rd out of the EU-15 countries. Ireland also compares favourably for more advanced services such as 34 Mbit/s – 2Km leased lines which tend to be used by larger companies, ranking 9th cheapest of 20 benchmark countries. However, Ireland is the second most expensive for 2 Mbit/s SDSL services of the 22 benchmark countries listed.

Availability
Latest estimates suggest that about three quarters of the population have access to broadband services in Ireland. Comparative data for 2005 ranked Ireland second lowest of the EU-15 countries for DSL coverage based on population.

Choice/Quality
Implementation of Local Loop Unbundling (LLU), which has a critical role to play in increasing competition as well as facilitating product innovation, continues to move at a very slow pace in Ireland. Comparative data for Q1 2006 shows Ireland joint 13th out of the EU-15 with Greece, in terms of the percentage of lines unbundled. At the end of June 2006, 5 percent of lines were unbundled in Ireland.

Penetration/Internet Usage Rates
PC penetration in Ireland increased to 59 percent in 2006 - up from 55 percent in 2005 and 46 percent in 2004. Internet penetration (by household) was 55 percent in 2006, whereas the EU-15 average was 54 percent. However, 79 percent of homes in Denmark and 77 percent in Sweden had Internet access.

Issues to be addressed
In spite of the strong growth in broadband take-up, further progress is still required to tackle a number of important issues:

1. Improving Availability. Improving availability, particularly in regional locations, remains a significant challenge. The lack of access to even basic broadband services outside the main towns and cities continues to be a barrier to enterprise development and investment in these areas.

2. Increasing Competition. Countries with the highest broadband take-up rates are those that have competitive markets for the supply of broadband services. There is broad consensus internationally that competition between and within platforms has been the primary driver of broadband take-up in many markets. To increase competition in Ireland and facilitate product innovation, we need to accelerate LLU implementation and continue to promote inter-platform competition.

3. Increasing Awareness among SMEs. The low uptake and limited use of ICT by small businesses have been attributed to a low level of awareness of the benefits presented by technology. The introduction of an ICT Audit Scheme, announced recently by the Minister for Enterprise, Trade and Employment, will enable small businesses to access professional advice on how to use ICT more effectively and strategically.