Dermot Ahern Announces Regional Broadband Contract

viking

Dublin, Tuesday, 29th June, 2004
Dermot Ahern TD, Minister for Communications, Marine and Natural Resources, today announced that the contract for management of the Government and local authority Regional Metropolitan Broadband Networks has been awarded to E-Net.

The award of the contract follows an open competitive process. E-Net is a Limerick company and is expected to employ 120 people both directly and indirectly – with 65 jobs located in Limerick - to manage the 26 metropolitan broadband rings which are seen as major drivers of inward investment and cheaper communications links.

The networks, either nearing completion or at advanced procurement stage, cover the main cities of Cork, Limerick, Galway, Waterford and Kilkenny as well as towns such as Wexford, Dungarvan, Portlaoise, Mullingar, Athlone, Letterkenny, Carrick-on-Shannon, Manorhamilton, Sligo, Dundalk, Drogheda, Monaghan, Cavan, Kingscourt and Carrickmacross. In aggregate, the construction costs of these Networks are in the region of €80m and were funded by the Government and the Local Authorities.

The term of the contract is 15 years and e-Net will begin operations straight away. E-Net will operate as a wholesaler of access to the metropolitan area networks and will offer a full suite of products including ducting, sub-ducting, dark fibre, high level managed capacity, collocation facilities and relevant auxiliary services. The pricing achieved in the contract is on a par with competitive pricing internationally and will, according to Minister Ahern, be a key driver of regional economic development.

Making the announcement the Minister said: “This is a key piece of the Government’s Regional Broadband Strategy. This new network and this management contract will both complement and extend very significantly the accelerated roll out of broadband infrastructure and high-end digital services to Ireland’s regions. Ireland has to maintain its premier position as a supplier of digital goods and services to a global market. High-speed low cost broadband helps ensure this.”

“Broadband is as essential an infrastructural prerequisite as roads, railways and energy networks. We are not stopping here as we are expanding the Regional Metropolitan Network. The contract with e-Net includes provision for extension to these additional networks when they come on stream.”

The Minister added: “This is a form of Public Private Partnership. The Government and Local Authorities have taken the construction risk in relation to these metropolitan networks. The operational risk is being undertaken by e-Net. So, as well as remunerating its own investment e-Net is also obliged to perform in a way which addresses the Government and local authority regional economic development agenda through its investment in these networks. The contact strikes a balance between the more commercial objectives of the management company and the longer-term economic development objectives of the Government and the local authorities.”

ends


About e- Net

e-Net is headed by Michael Tiernan of Tiernan Properties and funded by ACT Venture Capital, Anglo Irish Bank, Bank of Ireland and private equity. The company will be chaired by Eoin O’Driscoll former Country Manager of Lucent Technologies and currently Chairman of the Enterprise Strategy Group. The Chief Operating Officer of e-Net is Mr. George McGrath, formally head of BT Northern Ireland and Ocean Telecommunications in the Republic. Michael Tiernan will be Chief Executive Officer of the Company. The role of e-Net is to manage, maintain, and operate the Government owned metropolitan area networks been built under the e-commerce measure of the National Development Plan

ends

sceptre

Dermot Ahern TD, Minister for Communications, Marine and Natural Resources, today announced that the contract for management of the Government and local authority Regional Metropolitan Broadband Networks has been awarded to E-Net.

Ooh, there's a shock.

Mr_Man

how this works out. Does E-net get a commission on any product sales made or is there a flat fee for managing the MAN's ? If its the former then there is some hope that they will drive the use of all of this fibre, if not then it looks like another fat pay check at the taxpayers expense.

M.

Moriarty

If my memory isn't failing me, e-net have to pay a flat fee per year to the government or local authority (can't remember which) for the duration of the contract. Any profits e-net make on the network, e-net keep.

thegills

AFAIK,

- The Local Authority leases the MAN to the Minister for a fixed annual fee
- The MSE leases the infrastructure to the operators on a per-metre basis (CoLo excluded)
- A percentage of the revenue generated by the MSE is passed on to the Minister.

If any MAN does not attract operators in the first 12 months then the MSE must provide a service on that MAN.

dahamsta

What's the Eircom connection here again please?

eircomtribunal

Originally posted by dahamsta
What's the Eircom connection here again please?

I've posted this already on another thread, but think it should be here, too:
There's an Eamon Quinn article in todays Sunday Business Post on how Eircom will make profits from the MSE contracts

http://www.sbpost.ie/web/DocumentView/did-720649868-pageUrl--2FThe-Newspaper-2FSundays-Paper-2FNews.asp

"Eircom gets around broadband ban"

P.