Irish Times article 17/12/2002

michaelpwilson

The following reports are in today's Irish Times, written by Lorna Siggins. It is interesting to note that parts of the media still believe ISDN to be a broadband product. I would like to see the quality of "video on demand" that Ms. Siggins would enjoy with an ISDN connection. Despite its flaws, it is very satisfying to see the problems with broadband availability, infrastructure, and pricing reach the lofty heights of page two.

[report begins]

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Businessman complains of high telecoms costs

Quality telecommunications infrastructure and service are as crucial to regional development today as rural electrification was in the 1940s and 1950s, the Western Development Commission says in its report.

Swedish businessman Mr Stephan Wik would agree. Having been tempted to locate his internet services company in the west of Ireland, he would think twice about advising others to do likewise.

"I was naive. I believed what politicians and agencies like the IDA told me," Mr Wik told The Irish Times. In 1997 he set up his company, Anu Internet Technologies, in Westport, Co Mayo, employing eight people at peak in 1999. However, last September he was forced to relocate to Galway because the cost of telecommunications connections in Mayo was so high. He has moved his development section to the US and Britain.

His company was paying €33,000 a year for its telecommunications connection in Westport, but is linked to a connection with twice the capacity for €23,000 in Galway. In other words, he was paying 30 per cent extra in Mayo for half the speed and capacity.
The WDC report notes that there is some degree of competition between Eircom and Esat BT in the Galway market, but in Westport there is only one provider. The "back haul" distance from Galway to Dublin (as in connections between exchanges) and onwards to international connections is less than that from Westport to Dublin.

Apart from the different costs within Ireland, telecoms costs are considerably higher here than abroad. In the US, Anu Internet Technologies can buy the same amount of bandwidth for €4,900 a year, having paid €33,000 a year in Westport.

"I have received not one penny of State aid during my time in Ireland, but I was attracted by quality-of-life factors," Mr Wik said. "The problem is that none of the promises have been delivered upon, because the west is not seen as a priority."
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What is Broadband?

Broadband connections allow for high-speed telecommunications transfer of both voice and data. Broadband connectivity delivers fast internet access, as well as video on demand, video conferencing and web hosting.

Broadband services can be provided in a variety of ways, ranging from copper cable to integrated services digital networks (ISDNs) to digital subscriber line technology (DSL) to fibre optic cable and transmission over radio waves.

Broadband capacity is measured by the rate of transmission or bandwidth in bits per second. Like a road network, the more users there are the greater capacity is required. Broadband networks over fibre or copper wire are similar to primary, secondary and tertiary road networks and have four main components. These are:
- International links
- Backbone network, or high-capacity networks (usually fibre) connecting towns and cities
- Backhaul network, being connections between the national backbone and local telephone exchanges
- Local Access Network, or access from each business and home to the backbone, via the backhaul network. This has been the weakest link in the western region, because it comprises mainly copper cables with restricted capacity.

[report ends]

gurramok

Maybe the media are starting to cop on at last at the expensive telecommunications costs in this banana republic. !
Its now costing the country jobs not just in the west but all over.
DSL in Galway is 3 times expensive than the next comparable product in europe/usa/asia/world ! ?

Only a insane/very rich/naeive person that needs a broadband connection for his/her business would set up business here:(

MDR

http://www3.anu.net/ gonna make contact .... with both Mr Wik and Lorna Siggins ...

vinnyfitz

LS is a very good journo and worth interesting more in this sort of story.
Ray - apart from contacting her I think she might be interested in talking to Martin Harran - for a very good case study about connectivity in the west for "non-tech" businesses. Most people don't relate to internet companies as well as to flooring.

MDR

I pointed her in the direction of the Press Pack ... and particullary Martin Harran's article.