Tag Archives: eir

Economist Colm McCarthy

This morning.

Jack Horgan-Jones, in The Irish Times, reports that the Department of Communications has said Eir’s €1bn proposal to deliver rural broadband – as an alternative to that of the more expensive Granahan McCourt’s National Broadband Plan – “has not met” the State’s criteria for the project.

It follows Peter O’Dwyer reporting in The Sunday Business Post yesterday that Eir – which was previously in the bidding process until it dropped out in January 2018 –  had rubbished the Government’s claim that up to 81,000 premises across Ireland would have to pay higher bills for high-speed fibre broadband under Eir’s plan. Eir said the figure would, instead, be 9,000.

CEO of Eir Carolan Lennon, who told an Oireachtas committee just last week that it could do the project for €1billion, has an op-ed piece in today’s Irish Times claiming it warned the Government about “unnecessary costs and complexity for almost two years while we were in the process”.

Ms Lennon writes:

“For €1 billion we could build a network which would pass all the rural premises in the NBP with high-speed broadband and connect all those who want it to their broadband provider of choice.

“We would use Eir’s existing infrastructure, rather than building over it like National Broadband Ireland has chosen to do. Most significantly we would use the expertise Eir has gained over the past three years rolling out fibre at pace and scale in rural Ireland, passing 340,000 rural premises later this summer (more than 70 per cent of the number of rural premises in the NBP).”

“…The vast majority of homes in rural Ireland already have an Eir connection and we would reuse the existing overhead or underground plant where available. This would deliver affordable connections to customers across rural Ireland but be cheaper than the NBP approach because it reuses existing infrastructure rather than building new connections.”

Meanwhile, yesterday, on RTÉ Radio One’s Marian, hosted by Brendan O’Connor…

During a segment on the National Broadband Plan, economist Colm McCarthy called for a judge-led inquiries into the cost overruns for both the National Broadband Plan and the National Children’s Hospital.

He said:

“Every time there is a really big cock-up in the Irish public capital programme – and there have been lots of them, the National Children’s Hospital was another one – there doesn’t seem to be a threshold, above which the Government says ‘we really should have a detailed inquiry going back to the beginning in this case’.

“And I think we should.

I think there should be a judge-led public, sworn, inquiry into both the broadband plan and the National Children’s Hospital.

“…The temptation always is to say, ‘ah sure what’s €2bn or what’s €1bn on the national….sign the cheque and God is good and we’re off to the elections’ and so on.

The cock-ups, just this year, have been so big that it’s a wake-up call to anybody. We have a great big National Development Plan, a great big public capital programme, heading for €7bn per annum to be spent on all sorts of different kinds of infrastructure.

“There is no chance of a rational, careful programme of public investment here in the years ahead unless the errors that have arisen in these two cases are fully documented, names are named and the lessons are drawn to avoid a repetition.

We’ve been screwing up things in the public capital programme, Brendan, since I was a kid. There have been shocking cost overruns, huge mistakes made…”

“…it is feasible to learn the lessons from these two fiascos.”

Eir best-placed to provide rural broadband solution (Carolan Lennon, The Irish Times)

Eir broadband plan looks set to be rejected by State (Jack Horgan-Jones, The Irish Times)

Eir’s claim puts broadband cat amongst the pigeons (Peter O’Dwyer, The Sunday Business Post)

Listen back to Marian in full here

CEO of Rural Wifi Patrick Cotter; results of a recent survey by Rural Wifi

Rural Wifi, which was launched in 2015, claims to be the first Irish company offering both wireless and satellite broadband across Ireland.

They say using a combination of their router and antenna technologies mean they can get rural customers speeds of 30Mbps.

CEO of Rural Wifi Patrick Cotter – who founded Fleetconnect in 2008, which provides mobile wifi for clients such as Irish Rail and Bus Éireann – writes:

“In the last couple of months, we have been active on the ground in Leitrim and Monaghan -the worst two counties in Ireland for broadband penetration. The take up has been fantastic.

“We are now planning the next steps for further counties over the coming month, testing our service while putting up posters, signing up new customers and installing within short time frames because our teams are already on the ground.

“In Meath, I’m planning to help people be connected with up to 10mb by the end of the year. We need to close the Digital Divide as soon as possible.

“We recently said we’d come to the remote Aran Islands and we did. We installed Rural Wifi into the home of one family with three young kids. They had no internet until then and we got them up to 15 MB per second.”

Rural Wifi offers plans starting from rolling 30-day contracts with packages available from €48 per month for 100 gb data including installation, to unlimited data from €65 per month with a 14-day money back guarantee if the customer isn’t happy.

Fair enough.

Meanwhile…

Eir’s CEO Carolan Lennon at the Oireachtas communications committee on Tuesday

On Tuesday.

Eir’s chief executive Carolan Lennon told the Oireachtas communications committee that Eir could deliver high-speed broadband to 540,000 homes, farms and businesses across Ireland for €1billion.

This is a fifth of the estimated final cost of the project under the preferred bidder Granahan McCourt and a third of the sum the State has agreed to invest in the plan.

Yesterday, Ms Lennon’s appearance and comments were raised by Fianna Fáil’s leader Micheál Martin and he said:

“I think the Minister got too close to the Granahan McCourt consortium; the political and electoral imperative took over and the issue of cost in the Government’s requirements went out the window.”

“…Given that the costs have ballooned even from the estimates of 2017, never mind the original estimate of €500-odd million, the Taoiseach has been too dismissive of those who have raised legitimate questions about this and of yesterday’s Eir submission, which deserves further analysis. Alternatives should be considered.

“The Taoiseach might have felt the need to make a big political announcement before the local elections but I return to the words of the Secretary General of the Department of Public Expenditure and Reform, Mr Robert Watt, who said there was cause to pause and review. I ask the Government to do that now.”

In his response, Taoiseach Leo Varadkar said that, following on from Ms Lennon’s comments, the Department of Communications had written to Eir to seek further clarification, saying:

“We should not forget that Eir took part in the process and made an initial bid for €2.7 billion, which was higher than the initial bid from Granahan McCourt, and then pulled out of the process, citing the fact that the risks were too high and the level of oversight too onerous, and refusing to make any commitment around the equity investment it would make.

“While the Deputy has been critical that the equity investment made by Granahan McCourt is too low, Eir was unwilling to commit to any equity investment whatsoever.

“It is, therefore, a big turnaround that the company is now saying that it can do the project for €1 billion. If that is the case then I am all ears and we must listen to it.

“We need to know whether this offer is real and stacks up, and what kind of delay would be imposed on people in rural Ireland waiting for broadband if we went back to a new procurement process.

“Everyone understands that neither a private nor a State company can just be given a contract; there would have to be a new procurement process. We also need to know that anything done would be within state aid rules and EU procurement law. A letter was issued today by the Department to Eir seeking that information.”

This morning.

On Today’s Sean O’Rourke, Communications Minister Richard Bruton spoke about the matter…

Rural Wifi

Thanks Barbara