1. Ireland’s National Broadband Plan 2 September 2015 Jeff Maguire

2. Trends in the Irish Market On line consumer spending approx €5.9 billion in 2014 Projected on line spending of over €20 billion by 2020 Huge growth in traffic over all networks in last three years Many on line services consuming greater bandwidth, TV, video streaming, cloud etc., Far more jobs now rely on ICT services

3. The Future Future Demand Significant demand from all consumers for high speeds Foreign direct investment attracted by a connected society Citizens see benefits across the board of reliable broadband Education, health, agri business, SME’s etc will require reliable broadband Home entertainment converging on line putting pressure on all users of the networks

4. National Broadband Plan Ambition: 100% of premises in Ireland with access to high speed broadband: Commercial investment of €2.5bn providing high speed broadband to approx 1.6m of 2.3m premises in Ireland – 70% of premises covered commercially by 2016 State-led intervention aims to ensure that all premises are addressed – up to 30% of premises to be covered by State intervention All citizens and businesses will have access to high speed broadband, regardless of location.

5. Supporting Commercial Roll-out Multiband Spectrum Auction 2012 facilitating 4G rollout Next Generation Access arrangements in 2013 facilitating eircom rollout of e-Fibre or FTTC network Legislation enabling ESB to enter the telecoms market in 2014 Joint Venture Wholesale company (SIRO) now in place between Vodafone and ESB

6. Accelerated investment by eircom increased commitment from 1m to 1.6m premises by mid-2016 and a more recent announcement of FTTH to 60+ towns Higher speeds by UPC Over 700K homes can access speeds of 120Mbps to 240Mbps. Businesses speeds of 500Mbps ESB and Vodafone JV company planning €450 million investment in FTTH - speeds of 200Mbps+ to 500k premises in over 50 towns Fixed Wireless operators Investing in higher speed fixed wireless services €2.5b Commercial Investment

7. Significant data gathering exercise with industry Key Stakeholder engagement: Meetings with over 70 rural broadband providers Presentations to over 30 external Stakeholders across the country Public consultation ‘ Call For Input’ completed, seeking views on the technical criteria for Next Generation broadband Mapping existing and future network data from Operators: Where Next Generation broadband will be available in 2016 Where only basic broadband is available and unlikely to be upgraded by commercial operators Defining those areas in the State that require intervention – “White areas” Consultation Document seeking further input on Map and technical issues Engagement with European Commission re: State Aid rules State-led Intervention

8. April 2014 reaffirmed the commitment to make high speed broadband available to all citizens regardless of location The focus is now on a long term, future-proofed infrastructure to deliver a network that is capable of meeting future data demands in a rapidly evolving market. On-line map published in November last with all buildings in the State identified as either having or not having access to high speed broadband by 2016 The intervention strategy was published July 2015 outlining the detail of the proposed intervention http://www.dcenr.gov.ie/communications/en- ie/Pages/Consultation/NBP-Strategy-Intervention-Public-Consultation.aspxhttp://www.dcenr.gov.ie/communications/en- ie/Pages/Consultation/NBP-Strategy-Intervention-Public-Consultation.aspx Overall objective that a sustainable, reliable and future-proofed network for all areas is built to definitively address the broadband challenge in Ireland now and into the future No further intervention should be necessary for decades to come State-led Intervention

9. High Speed Broadband Map 2016

10. Circa 2.3m addresses in the State 1.6 Million addresses will receive commercial High Speed Broadband Approx 750,000 addresses in intervention area (100,000 commercial and 650,000 residential). This includes holiday homes and unoccupied homes. Intervention represented by the AMBER area includes Very small villages (less than 900 premises) Rural ribbon developments Rural one-off houses Intervention area includes almost 100,000km of road network with houses along most roads Approximately 80% of houses beyond 1 kilometre of the village centre Over 80,000 farms, hundreds of hotels, B&Bs, SMEs etc Over 2,000 locations lacking high speed connectivity in rural areas e.g. primary schools, IDA/Udaras business parks, Garda stations etc Findings of Mapping Exercise

11. Procurement strategy, one tender nationally or regional lots? Ownership model, State owned or gap funding scheme? Wholesale access arrangements Duration of contract with preferred bidder(s) - 10/15/20 years? Likely cost of intervention to the State Likely source and cost of funding Contract Governance office - DCENR, Regulator, other? 11 Intervention Strategy Work in Progress

12. Next Steps Consult on the Intervention Strategy between July-September Engage with the European Commission between June and December re compliance with State Aid rules Launch a Pre Qualification Questionnaire during the Summer Launch the Request for Tender end of 2015 Award a contract or contracts by mid 2016 High speed broadband rolled out as soon as possible thereafter Majority of business and homes delivered by 2018 Fully complete by 2020 Next Steps

13. Procurement Process will be run through Official Journal of the European Union for tenders (“OJEC”) The Pre Qualification Questionnaire will for example include minimum standards covering; Past performance of delivering telecoms networks Technical and professional ability to deliver Details of Economic and financial standing Entities will be reviewed to comply with criteria set out Those qualifying can then respond to tender document The tender process may be a “competitive dialogue” process, however this is yet to be decided KPMG will assist DCENR in the planning, design and execution of the procurement process 13

14. Potential Bidders To date the following telecom companies have expressed an interest in bidding for the intervention area; BT Ireland eircom Limited e-Net Imagine SIRO - Joint Venture company (ESB/Vodafone) 14

15. Thank You Questions? 9