More on the National Broadband Plan.

Wireless, Home, Router, Adsl, Modem, Broadband

As of today the Government has signed us up to the most expensive broadband plan. Its going to cost a Whopping €3 billion to connect up half a million rural households. It follows a “flawed” bidding process which left only one bidder- investment firm Granahan McCourt which is a US based company in the running… As the rules say the choice of one is not a choice -start the process again. No-one knows why the other bidders pulled out Eir, the ESB and so on, when so much money was involved.

Eir-Eircom said later that they could connect up the remaining rural households for about €1 billion which is at a third of a price of McCourt’s National Broadband Ireland . So it is quiet a steep price for rural broadband.

Another point to be raised is that we (taxpayers) don’t own the broadband infrastructure and are basically shelling out for something we don’t own and the contractor can sell it after nine years and own it outright after twenty five years . Shelling out €3 billion of taxpayers money is extraordinary arrangement when it should be done with private capital in the first place.

Eir/Eircom is the national telephone company it was their job to connect up the nation to high speed broadband, when the company (then Bord Telecom) was privatised it should have been made clear that no “cherry-picking” would be allowed instead they just connected the towns and the countryside was deemed commercially unviable . That shouldn’t have been allowed.

A few years ago Bupa (British healthcare company) wanted to sign up the younger clients but were told their policies would have to be “community rated” meaning the young pay for the old and Bupa would have to give money to other Healthcare companies with older clientele. They subsequently pulled out of Ireland (Rep). Where is the “community rating” for broadband ?

Why was Eir allowed to cherry -pick ? They could have made the costs back by selling digital/online services such as tv, music, downloading etc …

The whole process is costing the taxpayer a fortune when it could have been done for a lot less.

 

Some links of Interest

https://www.irishexaminer.com/breakingnews/ireland/why-is-northern-ireland-broadband-scheme-costing-half-that-of-scheme-here-ask-ff-961435.html?fbclid=IwAR2yycun38SJs9NUF5GKUj6dE3siqNPo8wvxF_Lgu6Bd3HCygBMkAy-qSJg#.Xb4arD6woLw.facebook

https://www.irishtimes.com/business/technology/contract-for-3-billion-broadband-plan-due-to-be-signed-on-tuesday-1.4087081

https://www.independent.ie/business/technology/news/dooley-go-back-to-eir-for-rural-broadband-well-all-save-money-38343155.html

On the National Broadband Plan- Worst Deal Ever…

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Here something the Government announced in the last two weeks which has gone down like a lead balloon.  No wonder with the news that the Government was splurging out over €3 billion euro with its private partner investing only €220 million initially . The deal is so lopsided In the fact that the private contractor gets to own the rural broadband network after 25 years and the state/ public gets to own nothing after the same period. Basically the public has nothing to show for all the money they have  invested. The Government has sought to defend their plan but its not the vote getter they had imagined.

This Government has showed little enthusiasm for the public interest with contracts like the National Maternity Hospital to have the nuns as “sole owners” despite the public paying over €350 million to build it, also the National Children’s Hospital at record overspend at € 1.4 billion and counting upwards .

So why are we basically giving over €3 billion away?

There is loads of projects that need to be done but there is “no money” there to do them or so we are told. Everything seems to cost 3-4 times what they would cost anywhere else. The National Broadband plan is quite pricey and there is cheaper alternatives .

Another point to make is that whose job is it really to roll fibre broadband ? The answer is that its Eircom/Eir’s job to roll out broadband anyway and they have been allowed to bail out on people living in rural area’s and cherry pick by just connecting the towns only.

Its not good practice and eircom/eir shouldn’t have be allowed to “cherry pick” as they have. They (Eircom/Eir )are the national phone company and its the phone network that is being upgraded. Eircom/Eir collect the line rental and should be able to supply broadband services such as video calling, cable tv, music streaming etc … over the new fibre optic rural service to help finance the cost. The present “modus operandi” of Eircom/Eir and people in rural Ireland won’t be connected to a phone service. It shows what a disaster the Eircom privatisation really is.