Govt 'failing to make use of broadband infrastructure'
Less than one per cent of Government business carried out on the internet makes use of the State-owned broadband infrastructure, it emerged today.
Despite some €120m of taxpayers’ money being spent to date on the Metropolitan Area Networks (MANs) – a nationwide web of internet hubs to bring broadband to the regions – the Government still uses Eircom for 90% of its online activity.
Fianna Fáil TD Noel O’Flynn, who chairs the Joint Committee on Communications, Marine and Natural Resource, questioned why the State-owned asset was not being used by Government.
Just 0.2% of Government business on the internet goes through its own broadband facility, he said.
A private company, e-net, which won a tender to manage the regional network, was asked by the committee if it had approached Government departments about using the 27 MANs.
Conal Henry, chief executive officer of the Limerick-based firm, said they had made some contact with the Department of Finance and would welcome more use of the State-owned system by the Government.
Green Party TD Eamon Ryan said the network was making only €3.5m a year, which wasn’t even enough to cover the interest on the investment.
Mr Henry insisted that the scheme needed to be looked at over a 10 or 20 year period, to properly gauge its success financially.
In the meantime, he claimed that inward investment, specifically in Dundalk, Letterkenny and Cork, was a direct result of the state-owned network.
He said there were probably hundreds of thousands of customers using the network through 16 licensed operators which provide internet services in the country through the network.
“There is a huge change in what is happening in Ireland, in terms of price and the range of products and services available,” he said.
Mr Henry said that problems remained in the roll-out of broadband and urged more Government investment.
Communications giant BT spent around €10bn delivering its service in Britain – the benchmark for Europe – and Ireland could expect to pay about 10% of that if it was able to compete, he added.
