Urgent fibre strategy needed to accelerate Ireland's recovery

bealtine

http://www.siliconrepublic.com/news/article/13021/

22.05.2009
In a day where Microsoft founder Bill Gates predicted that, in the US, economic recovery will be enabled by technology, the head of Ireland’s telecoms industry group warned that Ireland’s economic recovery will rely on the urgent construction of next-generation networks.

“The economy has been on a very rapid downward trajectory with significant contraction in economic activity, rapid increase in unemployment and a shrinking pool of revenues available to the industry,” Telecoms and Internet Federation (TIF) chairman Gerry Fahy said at tonight’s annual TIF Ball in Dublin.

“Our own industry has been no stranger to job losses and headcount reduction with close to 1,500 job reductions announced to take effect over the coming months. Thankfully, our industry has maintained its capacity to invest and while there has been a reduction in overall investment this is more driven by the dis-improvement in the business climate than on any reluctance to maintain the pace of investment in new technologies.”

According to TIF electronic communications network and service revenues in Ireland were €4.4bn in 2008. There are around 62 telecoms operators active in the Irish market. While Irish providers invested in the order of €730m last year in developing their networks, this figure will be less this year. The number of broadband customers has risen to over 1.2 million and we are now in the top 10 of EU countries. Real progress has been made and we must make ever endeavour to sustain it."

Fahy said that some significant milestones have been achieved with the conclusion of the Broadband to Schools Programme, which delivered broadband to all 5,000 primary, secondary and vocational schools with the support of the Industry to the tune of €5m per annum over the past three years.

“In addition, the awarding of the rural Broadband Scheme, which had been urged and promoted by the industry, will bring the availability of broadband to 100pc of homes over the next few years. So much has been achieved to the credit of the industry and the policy-maker also.”

Fahy said that business customers of Irish-based telcos are suffering from the economic downturn and are being much more cautious about all their expenditure categories.

“However, our own industry is perhaps slightly more resilient than other less essential services,” he explained.

“The rollout of digital terrestrial television (DTT) remains a challenge for both government and industry. “The switch off of analogue TV is planned for 2012 and this also raises questions of how best Ireland can use the freed up spectrum arising as result of this switch off. Indeed, interesting times lie ahead in this space.”

Fahy warned that despite the recession the amount of data in the world is exploding and the industry needs to invest in next generation technology to provide the data highways for the future.

“The problem of course is that these highways are expensive, and risky, the payback long and uncertain and the technological and competitive landscape difficult to predict. In the current environment, with a relatively downbeat economic outlook, it is difficult to foresee who has the balance sheet and the risk appetite to undertake such investment in this basic, but very necessary infrastructure.

“All operators face the same challenge and perhaps the timing may be ripe to reach for a new approach, a new model of competition. In previous times, it was feasible for regulators to insist on platform-based competition as the foundation for a competitive market, but it may be that the old model no longer applies in this drastically different environment and a process of co-opetition may be more feasible where the backbone infrastructure is provided in a collaborative fashion at a wholesale level while competition proceeds at the retail level.

“We must all be prepared to explore any model which might provide a solution to the infrastructure deficit which will hold back, not just the industry , but the economy as a whole and will slow the pace of recovery and inhibit the ability of the economy to exploit the opportunities of the information economy of the 21st century.

“TIF is willing to play its part in this regard and is currently commissioning a study into the scale of the problem and the possible solutions, which we will then take forward as a template with which to engage policy-makers and regulators,” Fahy told the telecoms industry.

By John Kennedy

watty

Why do they print this junk?

We have seen most of it before and it was stupid then too. Who wrote "Telecoms and Internet Federation (TIF) chairman" Gerry Fahy's script?

There are around 62 telecoms operators active in the Irish market.
* Most of those either make no money, owe too much or are peanut sized. The Country is big enough for 3 or 4 operators. This isn't competition. All lot of them are just resellers adding no real value or investment. Ultimately if they are profitable, (most are not), re-sellers are parasites on the Infrastructure as their profit is "taking" but there is no "giving" (investment). A call centre and Marketing campain is not investment.

The number of broadband customers has risen to over 1.2 million
* NO it hasn't you are counting maybe 25% non-Broadband connections

We are now in the top 10 of EU countries.
*Nonsense. If you count them the same way as Eamonn Ryan & Comreg count us and compare like with like we are near the bottom. Preferable to count us properly by same metrics they use.

Real progress has been made and we must make ever endeavour to sustain it.
* UPC is making some Progress. Nobody else is, because they have no money. Roll outs have all be stopped.
* Mobile rollouts continuing. But this does nothing for Broadband. The data is even cross subsidised by 100:1 to 500:1 compared with voice. It doesn't deliver broadband and never will. The pricing model can't be sustained (far too cheap).

In the last 8 months we are going backwards I think. Announcing 24Mbps DSL may look brilliant (Magnet, BT, Eircom, Smart), but that does nothing to make more broadband available or affordable. A top of the range package that less than 15% of phone lines can get. (I'm generous, it could be as low as 5% of all households that can get a full 24Mbps). The number of phone lines has fallen from 82% to about 66% and about 1/3rd are state funded. Sounds like going backwards.

Practically the highest line rental in the world and Mobile (which should in a cost priced market be x20 to x50 cost of DSL for same Gbyte traffic) selling at 1/2 price of entry level DSL.

No wonder such a rise in Mobile usage.

currently commissioning a study into the scale of the problem
* Ah TIF admit there is a problem.

The first stage in solving any problem is to stop being in the denial. Admit how bad things really are.

The rollout of digital terrestrial television (DTT) remains a challenge for both government and industry.
* Only because the only model in Ireland that will work for DTT is Free. Extra commercial pay TV Mux was clearly not on 10 years ago yet the Government still won't accept it. If a commercial PayTV DTT does start along side the free PSB mux, it will go bust.

Sponge Bob

Normal TIF spin and tripe. We are firmly stuck in slow lane europe , well beyond the top 10 .

Tommy McCabe ( who likely wrote this) wanted €5bn of government cash for some fibring about 3 or 4 years ago and then said he expected 'satelllite' to be used even after we spend €5bn .

watty

5Bn would nearly buy 3 networks. No satellite needed.

Tom Young

The bulk of the access to ducting issue the Minister mentioned in that release is due to ALTO lobbying according to my sources, not TIF. Also have been looking at the Dail Communications Committee transcript where the issue was ventilated and ventilated well.

I don't get why they're commissioning a study a la wasting money. Operators know precisely what's required, as does the Minister.

Tom