IOFFL: Report of meeting with the Department of Public Enterprise.

Dangger

IrelandOffline meeting with Department of Public Enterprise 21/3/02


Attendance:
IrelandOffline: Fergus McDonald, David Long, Michael Megan
Dept of Public Enterprise: Niall Ó Donnchú

IrelandOffline met with the Department of Public Enterprise on Thursday the 21st of March to discuss the recently announced strategy to use public-private partnership to build optic fibre rings within metropolitan areas. The cross-departmental team on infrastructure and PPPs telecommunications working group investigation was driven also by recommendations from the report from the Advisory Committee on Infocoms which recommended actions to ensure that “all citizens and businesses to have equitable access to advanced and broadband ICT in order to participate fully in the global knowledge society and economy by 2005.” The Infocoms report also recommended that the government intervene in the current deployment of fibre across the country with its own public private partnership (PPP) fibre rings project.

The report recommended a multi-phased strategy. In phase one, local authorities throughout the state will be 90% funded by the government to build open access fibre rings around their towns that will be available to anybody. Access to the open-access local networks created would be managed by the PPP operator(s) who would be operator-neutral. In effect, this involves the “creation of a ‘carriers’ carrier’ who provides services for other telecommunications companies, but does not compete for end-user customers”. This operator or broker will then sell access, at cost price. With a ranking in order of large corporates, SME and residential, residential access, the report sets a medium term objective of 5mbit per second to the home, with higher bandwidth for businesses.

The rings are to be built right up to the Eircom exchanges. Co-location space close to the exchanges will be provided also. As these local networks (metropolitan area networks) are open access and licences should not be exclusive, any service company should be able to provide voice telephony and Internet access combined, on competing technology platforms. Fixed-line operators, mobile operators, cable service providers and wireless operators would all have access. This would permit the use of the rings by local ISPs or wireless operators allowing them to provide a service in the area, making LLU more viable. Although not directly mentioned in the report, the Department mentioned that such a set up would be possible. It was mentioned that new business parks could avail of access directly to the rings by including fibre ducts in their construction allowing them to connect directly to the fibre rings.

The report specifies funding only SDSL technology, and we stressed that ADSL was also an important technology to allow smaller end-users to be reached. We were concerned that the emphasis on SDSL technology suggested the project was only concerned with enhancing the current leased circuit market, and this would be missing a greater opportunity to enable Ireland to catch up on the widespread low cost ADSL broadband availability of other EU countries [1]. The Department was receptive to this and understood the concerns.

IrelandOffline expressed concern that Eircom could heavily exploit ‘first mover’ advantage with their existing DSL infrastructure, and their dominant existing ISP user base, to capture most of the residential broadband market before the new network was on stream[2].

At this point we highlighted the benefits of a wholesale flat rate internet call origination (FRIACO) product. Dial up FRIACO over the existing phone network would create a viable entry level model for competitor ISPs now, that could grow over time to be in a position to compete with Eircom using the new network. The alternative network will be rolled out over an 18 month to 3 year timescale. The rolling out of FRIACO now would also generate demand for broadband services [3] over the 3 years the network is being built.

Without a residential broadband market developed, in three years time there could be a glut of broadband services with little demand from end users. The department were very interested in the FRIACO point, as its benefit in this regard had not been investigated in the report.

It was also pointed out that the building of the alternate network out to local exchange level would provide the necessary offloading of Internet traffic from the voice network in the medium term, to allow a FRIACO rollout strategy similar to the UK to be employed here [4].

They expressed interest in the fact that at least three EU members’ regulators have mandated off peak flat rate recently. The ODTR claims it is unable to do this. It was suggested the department could investigate how such mandating was being achieved in other states under common EU directives. Explaining that this was a matter in the first instance for the regulator, IrelandOffline have been asked to supply further evidence and information on the legal framework behind this, if possible[5].

IrelandOffline been invited to submit a response to the interdepartmental report regarding FRIACO and its importance amongst other things, as the whole project is still under development.

There is believed to be general support for broadband across all parties.

We queried the principle advances perceived by the Dept in the Communications Bill. The improved provision for making telcos share ducting in roads is hoped to reduce the amount of digging and trenches – getting all operators to use one trench. The inclusion of the new clause on Competition Authority referrals appeared to be mainly to formalise existing arrangements, rather than provide a new means for the regulator to employ the Competition Authority.

IrelandOffline was encouraged by the meeting, and feels that working with the Department could and should be very constructive. We hope to schedule regular meetings with the Department in the future, and will happily make a submission to the Department responding to the report on all matters we have been requested to.


[1] EU broadband availability
http://www.irelandoffline.org/img/BroadbandGraph.jpg

[2] Wholesale benchmark raises big pricing and competition issues
http://www.point-topic.com/cgi-bin/download.asp?file=DSLAnalysis%5CWholesale%20benchmark.htm

[3] FRIACO: how capacity-based interconnection strengthens the Internet market
http://research.analysys.com/Articles/StandardArticle.asp?iLeftArticle=926

[4] OFTEL (UK) Independent consultation on network capacity issues and solutions
http://www.oftel.gov.uk/publications/internet/Report%20chapter%207

[5] French regulator announces flat-rate access, 30 November 2001
http://www.art-telecom.fr/communiques/pressrelease/index-40-2001.htm

Netherlands regulator announces flat-rate access, 4 December 2001
http://www.opta.nl/documenten.asp?id=593

Italian regulator accounces flat-rate access, 21 December 2001
http://www.agcom.it/comunicati/cs_201201.htm

Stonemason

Its nice to see IOFFL being included in these descussions mainly coz "IF" they actualy listen to the commity they should at least get it right first time and save alot of money and wasted time.


Good work IOFFL

Stone

PS It still anoys me that the next phase of our business expansion is being held up due to lack of an always on connection so lets hope it not going to take 3 years.

jbkenn

Well done to all concerned, informative, constructive, positive.

jbkenn

davros

I add my voice to the appreciation being expressed. This is where the battle will be won - in the backrooms of government offices.

May I ask if the IOFFl committee has similar access to the ODTR? As I understand the process, the ODTR is in constant discussion with the operators and the consultation documents we see are almost the final summing up. IOFFl should be right in there shaping the consultation docs too.

Fergus

We're hoping to have a meeting with the ODTR within days. We are currently collating a number of issues which we think they can help clarify.

yellum

Gwan the IrelandOffline folks !

Dustaz

Well done folks. Sounds great:)

(or to use the vernacular - gg pld thx!)

Boston

excellent job

Lemming

Sterling work lads!!

MDR

First my Congrats,
Flat Rate internet access in Irish Home is an issue quite close to my heart, the regulator has received serveral letters from me on the subject (she relpies on such nice stationary ...).

From what I understand, you have said that regular has said that she cannot mandate the introduction of flat rate internet access because the common EU directives prohibit her from doing so. You however quite rightily argued that it was still introduced in other member states.

I am I right when I say that the 'Dept of Public Enterprise' has asked you to investigate how this was achieved in other member states and make a submission to this Dept.

My question is, if such a submission is made does the the 'Dept of Public Enterprise' possess to the power to apply pressure to the regulator to change her stance on this mater ?

SkepticOne

Originally posted by MDR
From what I understand, you have said that regular has said that she cannot mandate the introduction of flat rate internet access because the common EU directives prohibit her from doing so. You however quite rightily argued that it was still introduced in other member states.

It would be more accurate to say that the Regulator's view is that insufficient powers are granted under EU or national regulation rather than 'prohibited'.

I am I right when I say that the 'Dept of Public Enterprise' has asked you to investigate how this was achieved in other member states and make a submission to this Dept.

Note that we were not requested by them to do this investigation. It was just suggested that we do so. No assurances were given that action would be taken.

My question is, if such a submission is made does the the 'Dept of Public Enterprise' possess to the power to apply pressure to the regulator to change her stance on this mater ?

This was not discussed at the meeting, but under the comms bill there will be more accountability of the new telecomms commission to the Dept. than at present with the ODTR. How it will work in practice remains to be seen.

Manic

This is a 'Step in the Right Direction' Well done everyone involved

Regards,

Manic.

Superman

So what happened at the meeting with the ODTR

Dangger

The meeting is on Tueday 8/4/02.

daaft

I appreciate the fact that you're trying but what I see happening can't make me smile, not even a little. I'm still mad.

quote 1
to build optic fibre rings within metropolitan areas

quote 2
over the 3 years the network is being built

I live in a rural area which leaves me out of quote 1 and even if that changes it would extend the time expectations in quote 2. It's a long, expensive time for any business to have to wait.... like I said, I'm still mad.

Dangger

I'm still mad.

Beleive me daaft so am I.

We held this meeting because we could not get a clear picture from the information released early on in relation to this project.

In meeting recently with those responsible for examining such proposals at a local authority level in Dublin, which as we know would have effect on decisions made by local authorities throughout the country, we have highlighted the shortcomings you refer to.

We are under no illusion that this plan will solve our problem, but we see some ammendments that can be made to address its shortcomings and make it go futher. We were told that this plan was still under development and are working on a submission. With the recent round of meetings we are submitting with Esat the SFA we have addressed this issue.

We cannot let this plan become yet another black hole, or a means of re-spending money that has apparently been spent all ready by the government on such projects.