Regional Development Committee considers draft opinion on a European Broadband Policy

The Regional Development Committee is considering a draft opinion for the ITRE Committee on a European Broadband Policy.

The European Competitive Telecommunications Association (ECTA) has reported (1/2/07) a significant slow down in broadband uptake across Europe, falling from 23% to 14% growth in the half year period before September 2006.

Ireland bucked this trend showing growth of 30%, however this is due to Ireland's originally low base. Ireland remains 14th out of the EU 15 member states when it comes to Broadband access.

The reason for the slowdown in uptake is due to the lack of competition in the market,(ECTA) If Ireland is to significantly increase the amount of Broadband users and avoid the slowdown currently experience by the EU's leading broadband states, it must ensure that there exists a healthy competitive market for broadband services in Ireland.

Further evidence to reinforce this argument is that Ireland's rise in broadband user coincided with the incumbents (Eircom's) share of the market decreasing thus realising an increased market share for its competitors. This is exactly the same for Germany during the same period, surge in subscription linked to incumbent (Deutsche Telekom) loosing market stranglehold.

Ireland's broadband penetration at the end of Q3 2006 was slightly above 10%, while Denmark led the way with over 30%. (ECTA)

OECD figures from 2006 show Ireland 24th out of 30 in broadband subscription rate.

The EU 15 average for broadband subscription was 16.5% Ireland's figure was 9.2%.