[Indo Article] Government 'forced' into broadband market

damien

More from Cullen:
http://www.unison.ie/irish_independent/stories.php3?ca=184&si=1383074&issue_id=12379

Government 'forced' into broadband market - Samantha McCaughren

THE Government yesterday defended its entry into the broadband market and said that it had no choice but to enter the sector as incumbent Eircom had been cherry-picking locations for delivery of the technology.

The comments came from Minister for Transport Martin Cullen who said that the Government was "forced" into entering the broadband market because of Eircom's decision. His remarks followed comments from Eircom chief executive Dr Phil Nolan, who said that the Government had "set a dangerous precedent" by entering the sector. He warned that the move ran the risk of "crowding out the market".

The Government revealed late last year that it would be spending a further €50m to build fibre optic networks in 35 towns and a cross-border broadband network between Derry and Letterkenny. Eircom has opposed the investment and says that there is considerable duplication.

At the Irish Management Institute (IMI) conference in Co Wicklow yesterday, Mr Cullen reacted to Eircom's criticism of the broadband strategy, saying that companies like Eircom had opted to only deliver broadband into areas which were profitable, while the Government represents all of society.

He accused the company of "cherry-picking" where it delivered broadband.

When Dr Nolan said that the Government was doubling up with Eircom's delivery of broadband, the Minister replied that this was because the Government initiative had "forced Eircom to get off its backside". The Government's broadband network plan is part of its strategy to bring fast internet network services to areas outside of cities like Dublin, Galway and Cork.

Commenting on the topic of regulation, Dr Nolan also warned that over-regulation was one of the "biggest threats to our economy".

Also speaking at the IMI event yesterday was C&C's Maurice Pratt, who hit out at the Government for failing to address the report of the Enterprise Strategy Group, published last June. He said that it had taken almost as long for the Government to comment on the report as it had for the group to produce it.

"All that the Government has said so far is that it agrees with 70pc of its recommendations. The global economy is moving faster than we can respond," he warned. "We may find we are behind the curve, not ahead of it," he concluded.

damien

Examiner Article:
http://www.irishexaminer.com/pport/web/business/Full_Story/did-sgh3-DYoT408IsgadLjt5C321I.asp

Cullen in spat with eircom boss
By Brian O’Mahony, Chief Business Correspondent

COMMUNICATIONS Minister Martin Cullen publicly rebuked Dr Phil Nolan of eircom at the IMI conference in Druids Glen, Co Wicklow, yesterday.

The eircom chief executive claimed the privatised group has delivered broadband to the nation, a claim with which Mr Cullen sharply disagreed. When Dr Nolan made the claim Mr Cullen interjected and said the company only got up off of its “arse” when the Government, through ComReg, created more competition for eircom in the market.

In that context the minister expressed serious concern that deregulation in Europe was falling way behind Ireland and America. “Europe better just wake up,” he said. Was that a vote of Boston over Berlin asked broadcaster Olivia O’Leary, who chaired the session about privatisation and regulation in the Irish market.

Responding to questions about infrastructure, Mr Cullen accepted that outside Dublin the roads situation left a lot to be desired. “There was massive under-investment for years, but we are now catching up. The scale of investment taking place in Ireland is unparalleled with the rest of Europe.”

In the light of the huge challenges coming down the line, both the minister and former Aer Lingus boss Willie Walsh talked about the need for an open skies policy between the US and the rest of Europe. Ireland would benefit significantly from a change in that policy.

The deterrent to US airlines from flying to Ireland is huge, he said. It is like a hotel chain wanting to build a hotel in Dublin being told they have to build one in Shannon also in order to get permission to build in Dublin, Mr Walsh said.

In the overall context of Aer Lingus and the second terminal, the minister said: “I am seeking to address all these issues in a holistic way and intend to present an integrated set of proposals to my Cabinet colleagues in the next number of weeks.”

Those plans will “resolve both the securing of capital for Aer Lingus and the construction and operation of Terminal Two,” said Mr Cullen.