Cork Metropolitan Area Network & Regional Broadband

Global Scene Since late 1990, Telecoms Companies and Bankers have written off $250 bn in debt 780 bn in Market Capital Goldman Sachs DSL revenue in Europe is growing by 24% per annum 10.3 bn in 2006 Revenue is falling for all fixed networks except broadband The cost of renting DSL lines has fallen by 25% in the past year

Global Scene Beginning of 2003 Few operators offering residential broadband above 1.5 mbps (3 minute music file downloaded in 16 seconds) Now Telewest offers 2 mbps (UK) Telekom Austria offer 4 mbps Telia offer 8 mbps (Sweeden) Consumer uptake is generally slow Price Value and frequency of lost connection So why investment paradox in Ireland What is being done about it?

Government Objective That Ireland be in the top 10% of OECD countries for broadband connectivity within 5 years. New Connections

Irish Market Statistics Domestic Internet minutes account for 40% of all retail minutes. This now exceeds voice minutes. 45% PC ownership at home Ireland 4 th in the Eurobarometer of Internet penetration behind Holland, Denmark and Sweeden Retail DSL Prices have halved since March 2003 (from 99 per month to 49 per month) Since September 2003 a further 199 p.a. discount

Irish Market Statistics 10,000 new connections planned by Christmas 0.7% of inhabitants or 1.8% of telecoms customers DSL consumers now stand circa 10,000. The March figure was 1, m customers in Ireland Eircom has DSL enabled 118 exchanges to date in ,200 in the country ESAT have DSL enabled 40 exchanges to date in 2003 In Cork the following exchanges are DSL enabled Ballincollig, Bandon, Churchfield, Cork Central, Dennehys Cross, Douglas, Kanturk, Macroom, Mallow, QUAKER Road, Wellington Road, Clonakilty

WLAN Trial example: Amocom Cork successful in securing 1 of 4 DCMNR nationwide sponsored initiatives 80% coverage of Cork city and near surrounds – network build out excceded plans In excess of 100 customers since launch Feb 2003 World class Motorola based 5.7GHz radio access network combined with Amocom proprietary core access network Delivering a range of broadband and point-to-point services to businesses (and homes) in Cork city and near surrounds Rapid installs, low-cost, high speed, always-on, secure, flexiblity, local service Providing the enabler for reduced costs, more efficient working processes and advanced applications => improves GDP of the region

Fixed Wireless Network Overview Metro Fibre Ring Wireless Node NSC

Broadband Penetration per 100 Inhabitants 2002 KoreaHong Kong CanadaTaiwanDenmarkIcelandSwedenJapanUnited StatesFinlandIrelandAustriaSingapore - Ireland 1.25% (DSL, leased line) of telecoms customers -.5% of inhabitants

OECD Benchmarking National Residential Basket Ireland stands 11th out of 18 countries National Business Basket Ireland stands 10 th out of 18 countries International Residential Basket Ireland stands 10 th out of 18 countries International Business Basket Ireland stands 9 th out of 18 countries National Leased Line Basket Ireland stands 7th out of 18 countries International Leased Line Basket Ireland stands 2 nd out of 18 countries

Metropolitan Area Networks NDP Galway Limerick Wexford Cork Carrick-on-Shannon Metropolitan Area Network Letterkenny G weedore Kilkenny Waterford Clonmel Carlow Dungarvan Manorhamilton Portlaoise Athlone Tullamore Mullingar Roscommon Ballina

Geographical Coverage of Recommended Projects Including possible contracts with 3 private companies DPE2001 Galway Sligo Castlebar Limerick/ Shannon Wexford Mallow Arklow Cork Carrick-on-Shannon Cavan Dublin Roscrea Broadband PoP Dundalk Letterkenny Gaoth Dobhair Industrial Park Gweedore Links Kilkenny Waterford Clonmel Carlow Dungarvan Manorhamilton Portlaoise Naas Carlow Athy Wicklow Drogheda Ennis Gorey New Ross Enniscorthy Athlone Tralee Tullamore Mullingar Roscommon Kingscourt Carrickmacross Nobber Colp RSU Birr Banagher Tipperary Annacotty RSU Crookstown Macroom Mullinvat Newtownmountkennedy Enniskerry Loughlinstown Kilmacanoge Ballina Crossmolina Monaghan* Cavan*

Update on MANS First phase 19 MANS are underway On target and slightly below cost 53% civils completed 42% fibre completed Queuing and advancing requests for access

Update on MSE Independent Management Entity for the MANs Multidisciplinary team in place Bids in Clarification requests issued Presentations Made Selection of ranked bidder Contract – year end

First Slide Text for Slide Here

Technical Aspects of Cork MAN Construction started February 2003 and to be completed by December km of 4 way 110mm duct 4 x 32mm subducts 263 chambers 40 km of 96 fibre cable and 14km of 192 fibre cable Advanced fibre type G652.C to allow new high capacity technologies e.g.CWDM Total cost of MAN project 12.5m Advanced fibre type G652.C to allow new high capacity technologies e.g.CWDM

Technical Aspects of Cork MAN Service Providers on the MAN route include eircom, ESAT-BT, Chorus, MCI, ESB-Telecom 6 km of ducting to connect more than 200 Customers including 16 business parks Patrick Street area renewal works have included a customer connections available in the footpath Co-Location facilities available at Churchfield and National Software Centre

Market Developments 2003 Eircom DSL – 118 Exchanges – 40 towns & cities FRIACI 30,000 customers Eircom retail price reduction by 199 Flat rate dial-up agreed and introduced Esat DSL – 40 exchanges – 31 Towns ESAT DSL reduced also by 199 circa.

Market Developments 2003 Irish broadband, Leap, NTL, offer bb packages ESB fibrewrap project near complete. BGE ducting in Dublin -Galway WLAN trails going ahead ESB Powerline trials going ahead Schools Broadband

Summary of Situation Significant pick up in broadband numbers since March 1, , ,000 on DSL Still relatively poor relation internationally on DSL About 88 key towns and remote regions excluded from current plans Newbridge,Maynooth,Carrrigaline,Cobh,Birr,Roscrea,Fermo y,Mitchelstown,Kilcock,Ballyshannon,Castleisland,Kildare town,Tipperary Town etc 200m indicative NDP allocation

Ministers View Currently there are almost 88 large towns that the market is not addressing, and that simply is not sustainable The dificit must be addressed in a pro-competition, pro-choice and pro-low-cost fashion If it isnt addressed quickly by the market, the Minister will not hesitate to bring in stricter regulation and pursue some legislative options open to him The Minister will not stand idly by while towns like Newbridge, Maynooth, Ardee, Mitchelstown, Roscrea and Cobh do not even have a basic DSL broadband service. Ireland cannot preside over a culture of fegional broadband indifference The case for ubiquitous broadband is as strong now as the case for digitisation 20 years ago and the rewards are potentially more promising

Questions Thank You