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Global Scene Since late 1990, Telecoms Companies and
Bankers have written off $250 bn in debt €780 bn in Market Capital
Goldman SachsDSL revenue in Europe is growing by 24% per annum€10.3 bn in 2006
Revenue is falling for all fixed networks except broadband
The cost of renting DSL lines has fallen by 25% in the past year
Global Scene Beginning of 2003
Few operators offering residential broadband above 1.5 mbps (3 minute music file downloaded in 16 seconds)
Now Telewest offers 2 mbps (UK)Telekom Austria offer 4 mbpsTelia offer 8 mbps (Sweeden)
Consumer uptake is generally slow Price Value and frequency of lost connection
So why investment paradox in Ireland What is being done about it?
Government Objective
“That Ireland be in the top 10% of OECD
countries for broadband connectivity
within 5 years.”
New Connections
Irish Market Statistics
Domestic Internet minutes account for 40% of all
retail minutes. This now exceeds voice minutes.
45% PC ownership at home
Ireland 4th in the Eurobarometer of Internet
penetration behind Holland, Denmark and Sweeden
Retail DSL Prices have halved since March 2003
(from €99 per month to €49 per month)
Since September 2003 a further €199 p.a. discount
Irish Market Statistics10,000 new connections planned by Christmas 0.7% of inhabitants or 1.8% of telecoms customers
DSL consumers now stand circa 10,000. The March figure was 1,000 1.6m customers in Ireland
Eircom has DSL enabled 118 exchanges to date in 2003 1,200 in the country
ESAT have DSL enabled 40 exchanges to date in 2003In Cork the following exchanges are DSL enabled Ballincollig, Bandon, Churchfield, Cork Central, Dennehy’s
Cross, Douglas, Kanturk, Macroom, Mallow, QUAKER Road, Wellington Road, Clonakilty
WLAN Trial example: Amocom Cork successful in securing 1 of 4 DCMNR nationwide
sponsored initiatives 80% coverage of Cork city and near surrounds – network
build out excceded plans In excess of 100 customers since launch Feb 2003 World class Motorola based 5.7GHz radio access network
combined with Amocom proprietary core access network Delivering a range of broadband and point-to-point services
to businesses (and homes) in Cork city and near surrounds Rapid installs, low-cost, high speed, always-on, secure,
flexiblity, local service Providing the enabler for reduced costs, more efficient
working processes and advanced applications => improves GDP of the region
Fixed Wireless Network Overview
Metro Fibre Ring
Wireless Node
NSC
Broadband Penetration per 100 Inhabitants 2002
0
5
10
15
20
25
Korea Hong Kong
Canada Taiwan Denmark Iceland Sweden Japan United States Finland IrelandAustria Singapore
- Ireland 1.25% (DSL, leased line) of telecoms customers - .5% of inhabitants
OECD BenchmarkingNational Residential Basket Ireland stands 11th out of 18 countries
National Business Basket Ireland stands 10th out of 18 countries
International Residential Basket Ireland stands 10th out of 18 countries
International Business Basket Ireland stands 9th out of 18 countries
National Leased Line Basket Ireland stands 7th out of 18 countries
International Leased Line Basket Ireland stands 2nd out of 18 countries
Metropolitan Area Networks NDP 2000-2006
Galway
Limerick
Wexford
Cork
Carrick-on-Shannon
Metropolitan Area Network
LetterkennyGweedore
Kilkenny
Waterford
Clonmel
Carlow
Dungarvan
Manorhamilton
Portlaoise
Athlone
Tullamore
Mullingar
Roscommon
Ballina
Geographical Coverage of Recommended ProjectsIncluding possible contracts with 3 private companies DPE2001
Galway
Sligo
Castlebar
Limerick/ Shannon
Wexford
Mallow
Arklow
Cork
Carrick-on-Shannon Cavan
Dublin
Roscrea
Broadband PoP
Dundalk
Letterkenny
Gaoth Dobhair Industrial Park
Gweedore
Links
Kilkenny
Waterford
Clonmel
Carlow
Dungarvan
Manorhamilton
Portlaoise
Naas
Carlow
AthyWicklow
Drogheda
Ennis
Gorey
New RossEnniscorthy
Athlone
Tralee
Tullamore
Mullingar
Roscommon
Kingscourt
Carrickmacross
Nobber
Colp RSU
Birr
Banagher
Tipperary
Annacotty RSU
Crookstown
Macroom
Mullinvat
Newtownmountkennedy
EnniskerryLoughlinstown
Kilmacanoge
BallinaCrossmolina
Monaghan*Cavan*
Update on MANS
First phase 19 MANS are underway
On target and slightly below cost
53% civils completed
42% fibre completed
Queuing and advancing requests for access
Update on MSE
Independent Management Entity for the MANs
Multidisciplinary team in place
Bids in
Clarification requests issued
Presentations Made
Selection of ranked bidder
Contract – year end
First SlideText for Slide Here
Technical Aspects of Cork MAN
Construction started February 2003 and to be completed by December 2003
54km of 4 way 110mm duct
4 x 32mm subducts
263 chambers
40 km of 96 fibre cable and 14km of 192 fibre cable
Advanced fibre type G652.C to allow new high capacity technologies e.g.CWDM
Total cost of MAN project €12.5m
Advanced fibre type G652.C to allow new high capacity technologies e.g.CWDM
Technical Aspects of Cork MAN
Service Providers on the MAN route include eircom, ESAT-BT, Chorus, MCI, ESB-Telecom
6 km of ducting to connect more than 200 Customers including 16 business parks
Patrick Street area renewal works have included a customer connections available in the footpath
Co-Location facilities available at Churchfield and National Software Centre
Market Developments2003
Eircom DSL – 118 Exchanges – 40 towns & cities
FRIACI 30,000 customers
Eircom retail price reduction by €199
Flat rate dial-up agreed and introduced
Esat DSL – 40 exchanges – 31 Towns
ESAT DSL reduced also by € 199 circa.
Market Developments2003
Irish broadband, Leap, NTL, offer bb packages
ESB fibrewrap project near complete.
BGE ducting in Dublin -Galway
WLAN trails going ahead
ESB Powerline trials going ahead
Schools’ Broadband
Summary of Situation
Significant pick up in broadband numbers since
March 1,000 -10,000 -20,000 on DSL
Still relatively poor relation internationally on DSL
About 88 key towns and remote regions excluded
from current plans Newbridge,Maynooth,Carrrigaline,Cobh,Birr,Roscrea,Fermo
y,Mitchelstown,Kilcock,Ballyshannon,Castleisland,Kildare
town,Tipperary Town etc
€200m indicative NDP allocation
Ministers View“Currently there are almost 88 large towns that the market
is not addressing, and that simply is not sustainable” The dificit must be addressed in a pro-competition, pro-choice
and pro-low-cost fashion If it isn’t addressed quickly by the market, the Minister will not
hesitate to bring in stricter regulation and pursue some legislative options open to him
The Minister will not stand idly by while towns like Newbridge, Maynooth , Ardee, Mitchelstown, Roscrea and Cobh do not even have a basic DSL broadband service.
Ireland cannot preside over a culture of fegional broadband indifference
The case for ubiquitous broadband is as strong now as the case for digitisation 20 years ago and the rewards are potentially more promising
Questions
Thank You
