1. Presentation to Joint Oireachtas Committee [27/01/2016] Jeremy Godfrey, Chairperson Kevin O’Brien, Commissioner Gerry Fahy, Commissioner

2. ComReg - Who we are  We regulate communications markets so that they operate effectively in the interests of consumers and society  Established in 2002 by the Communications Regulation Act  Statutory objectives include:  Promoting the interests of end users  Facilitating competition and consumer choice  Facilitating innovation and investment  Ensuring efficient use of radio spectrum 2

3. ComReg - What we do  Our functions derive from Irish and EU law  Regulate operators with significant market power  Uphold consumer rights  Manage the use of the radio spectrum  Assign rights of use  Manage radio interference (e.g. to support aeronautical safety)  Ensure delivery of Universal Service in telecoms and posts  Various other functions, including numbering, charges for the Emergency Call Answering Service, regulation of Premium Rate Services 3

4. Main trends Users  More  Video streaming  Social media  Smartphones and tablets  Smart “things” like thermostats  Access via wifi and mobile  Less  Fixed line phone calls  Text messages  Smartphone driving high data usage growth on mobile Networks  Faster fixed connections  Fibre closer to the user  Better wireless connections  Faster speeds with 4G  Wider coverage of data services following changes in spectrum rules 4

5. Broadband penetration in Ireland is above EU28 average 5

6. High speed platforms are taking greater market share 6

7. Broadband speeds are increasing 7

8. Competition in the retail broadband market 8

9. Many providers with a broad range of prices 9

10. How the fixed market has changed - networks  Much wider availability of high-speed broadband networks  Eir (previously Eircom) high-speed network covering 1.3 million premises, with public statements identifying a target of 1.9 million  Virgin Media covers 760,000 premises  Siro (ESB/Vodafone JV) plans initial coverage of 500,000 homes  Overall high-speed coverage of 71% in line with EU average of 68%  State Intervention planned for last 30% of premises 10

11. How the fixed market has changed - competition  Increased competition in fixed voice and broadband, between and on networks  Market entry by Sky, Vodafone at Home, and others (through regulated access to eir’s network)  Virgin Media (previously UPC) has taken significant market share  Competition on Bundles – voice, broadband, TV and mobile  Declining importance of fixed voice but increasing importance of fixed broadband to access data services – especially video  Wireless, Mobile and Satellite play an important role 11

12. Competition and consolidation is changing the the retail mobile market 12

13. Contract and Prepaid revenue per user have declined by 8% since 2013 13

14. Mobile data usage is growing very rapidly following the launch of 4G 500% Increase in mobile data usage since 2011 Multi-Band Spectrum Auction 4G Launched 14

15. 86% increase in the available spectrum for wireless services in 2016 With regional assignments complementing the National Broadband Plan Supporting significantly enhanced wireless rural broadband services With the potential for a further 52% uplift of assignments Including spectrum (700MHz) suitable for rural coverage extension ComReg’s proposed Spectrum Strategy PAST FUTURE 15 +86% +52%

16. Consumer surveys show improving satisfaction with all services since 2013 16 Source: ComReg (fieldwork and data analysis carried out by RED C)

17. Communications prices have declined by 8% overall since 2011 versus CPI 17

18. Annual statistics on Customer issues logged show a downward trend of 15% year on year  The top categories of electronic communications service issues  Billing and disputed charging issues largely unchanged  Contractual matters down by 22%  Service issues down 15% 18

19. Many have benefited but there’s still work to be done  Substantial progress in bringing advanced services to most of the population  Several initiatives will improve experience for users in less- densely populated areas, and elsewhere  Government’s National Broadband Plan  Continued investment by fixed and mobile operators  Continued aggressive competition  More spectrum releases by ComReg  Continued action by ComReg to uphold consumer rights  Continued action by ComReg to optimise and enforce fair competition rules 19

20. Presentation to Joint Oireachtas Committee [27/01/2016] Questions