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Removing 300,000 homes from original broadband plan 'made original tender less attractive'

That was according to the Secretary General of the Department of Communications Mark Griffin.

TAKING OUT 300,000 commercially viable households from the National Broadband Plan tender made it a less attractive sell to other bidders, according to the Secretary General of the Department of Communications Mark Griffin. 

Speaking before the Oireachtas Public Accounts Committee today, Sinn Féin’s David Cullinane asked if the removal of around 300,000 households from the original tender changed the dynamic of the tender itself.

Eir had entered into a contract to deliver fibre broadband to the households, which the secretary general acknowledged today were more commercially viable. 

Eir subsequently announced that they were withdrawing their bid for the NBP tender process having already rolled out fibre broadband – which is a higher quality, higher speed broadband, to 70% of homes across Ireland – but about 540,000 homes and businesses still remained unconnected (and still are). 

The National Broadband Plan aims to give 750,000 premises nationwide a minimum download speed of 30Mbps. This also covers Irish businesses that currently have no access to broadband from commercial operators.

What company will roll out broadband to the remainder 540,000 homes – households that are less accessible – has become a headache for government, due to only one remaining tender, Granahan McCourt led by David McCourt, in the mix.

Tensions around the plan have escalated, due to confirmation that meetings between McCourt and the then Minister for Communications Denis Naughten took place, many of which took place in an informal capacity, with no officials present and no minutes taken. 

Griffin told the committee today that the State can only intervene when no market operator will provide services. He said Eir made a proposal to the department to roll out services to the 300,000. However, this would in turn reduce the overall scale of the households up for grabs in the original tender. 

The secretary general said the department consulted with the EU Commission about whether there was latitude for the government to refuse such a deal when it is on the table.

He said it was made clear to them under EU State aid rules that the Irish government would have no option to decline the offer. 

When asked if the removal of those 300,000 homes made the overall tender less attractive to the remaining bidders, Griffin said: 

“I think it is a reasonable conclusion to draw.”

Cullinane said it would appear that the decision to do so seriously compromised the viability of the project, possibly fatally.

“Rural Ireland has suffered as a result – with significant consequences in terms of investment, growth and viability. We need, therefore, to get to the heart of the decision to change the tender in 2016 and why it was taken.

“The PAC needs to do its job. It needs to investigate the tendering process and I hope this becomes a key part of the Committee’s work in the new year.

“Public oversight demands that we do so,” he said. 

On the meetings between McCourt and Naughten, the secretary general said he did not recall telling the communications minister at the time that some of the meetings being held might not be appropriate. He said he was not aware of any private meetings between the two men. 

However, he added there were meetings held with other bidders also, such as Eir on 23 January where Griffin said officials told the CEO that the company was being premature in walking away from the tender. 

Separately, a discussion on the Smyth report into the National Broadband Plan and meetings between David McCourt and former Communications Minister Denis Naughten took place at the committee. 

Rollout of 5G 

Also today, the secretary general was asked by Fianna Fáil’s Marc McSharry whether the department should be focusing on the roll out of 5G rather than fibre broadband to the home. 

Griffin said a recent Comreg report said that 5G is not a substitute for fibre, and is merely “complementary” to fibre. 

McSharry questioned which would be more cost-effective, seeing as the NBP costs appear to be spiralling. 

Griffin said to get 5G coverage to 99.5% of the country, over 6,000 additional masts would be needed, and would cost around €1.8bn.  

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    Mute trevor flanagan
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    Aug 11th 2012, 6:21 PM

    Eileen I have to agree with Lauren for the simple reason…..that she’s smoking hot.

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    Mute Larry Murphy
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    Aug 11th 2012, 6:35 PM

    Naw, fake tan and stretched plastic looking.

    9
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    Mute Eileen Gabbett
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    Aug 11th 2012, 4:10 PM

    Well done once again to the bomb squad , amazing work !
    One wonders though how long the Ministers of Justice and Defense are going to allow this increasingly dangerous situation to continue?

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    Mute Lauren McCarthy
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    Aug 11th 2012, 4:37 PM

    What would you propose they do? Set up search check points at every cross roads in the country?

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    Mute Eileen Gabbett
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    Aug 11th 2012, 4:51 PM

    What do you suggest Lauren ?
    The Gardai and Army HAVE access to more information than you or I . The thing is there is only so much that so few manpower can do. There should be more Gardai .The Gardai and Army bomb disposal teams do great work and I am not criticising them , but the politicians who have reduced their numbers should be held accountable . It is worth noting that any number of Gardai can be summoned to Mayo , yet there are viable exploding devices being found , but who is panting them ??? . The Banks have access to Gardai and Army to protect their money in transit …..

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    Mute Lauren McCarthy
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    Aug 11th 2012, 6:14 PM

    As it happens Eileen the banks have to pay for the gardai and army when they need cash escorts

    What would you propose we pay all this extra man power with? gratitude?

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    Mute Eileen Gabbett
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    Aug 11th 2012, 7:56 PM

    So the banks pay for private security from State police . Says it all there. By the way I have the utmost of respect for te majority of Gardai. They like the prison service have a thankless job. Maybe it is about time for the banks to pay for their own private security and this in turn would free up gardai and army personnel to carry out duties for the state and the citizens. Shell should also employ more security if they feel so much at risk. You seem to be very defensive. I have good time for the work of the gardai .

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    Mute Eileen Gabbett
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    Aug 11th 2012, 8:02 PM

    Gratitutde does not put food on the table so are you telling us here that shell and the banks pay Garda salaries ? Are you seriously implying that only for Shell and the banks Gardai would not be paid ? Lauren , maybe you should retract your comments , because what you are saying is actually accusing the government of offering preferential treatment and service for money …… I do not think the Gardai will like that .

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    Mute trevor flanagan
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    Aug 11th 2012, 6:57 PM

    How are finding life on the outside Larry? I thought you were in hiding.

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    Mute Larry Murphy
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    Aug 11th 2012, 6:59 PM

    Free travel. I can pop up anywhere.

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    Mute trevor flanagan
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    Aug 11th 2012, 7:05 PM

    Lucky for Lauren she’s not your type so.

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    Mute Mick Collins
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    Aug 11th 2012, 9:13 PM

    Let’s not trivialise the greatest risk to the Irish State since the so ceasefire in Northern Ireland. Increased terrorist activity across the Border including shots being fired at PSNI last month and this sad total of 123 call outs with more than fifty viable devices in the Republic this year alone. This is alarming
    and even more so when the National Press is ignoring the matter. Perhaps we should read something into the obvious lack of coverage and also lack of comment from the Department of Justice or Defence.

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    Mute Mick Byrne
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    Aug 11th 2012, 9:52 PM

    Mick Collins,
    There are more Garda Stations to be closed next year and there is a green paper on Defence due for budget time there is another 12.5 billion euro to be taken out of this economy by the end of 2015, our troika masters have spoken and so it shall be.

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    Mute seamus mcdermott
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    Aug 11th 2012, 10:49 PM

    Jesus, they call out BDU so often they have to replace the tires on the robot every year.

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    Mute Barry O'Sullivan
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    Aug 16th 2012, 5:58 PM

    I believe it is ex-IRA members who are selling there wares and expertise on to criminal gangs now that the WAR! Is over….a leopard never changes it’s spots!!

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    Mute Patrick Collins
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    Aug 12th 2012, 9:55 AM

    They (guards) know who planted it,they know who it was intended for (local traveller fued). There’s a (want to be) traveller crime family intimidating the local wealthier families for land and cash and the guards can’t do anything about it. This is the third device that they’ve been called out too in rathkeale. The first one exploded when it was thrown into a house and the second failed to detonate.

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    Mute Rowan Murphy
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    Aug 12th 2012, 12:21 AM

    Makes me wonder what kind of person is doing this. Is there an agenda? Making bombs for the craic because they can? Like hackers and their bragging rights. Just looking for attention. Hard to know. All these bombs being found yet none have gone off. Very strange.

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    Mute Mick Collins
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    Aug 12th 2012, 4:46 AM

    Yes they have gone off…with one removing the hand of a young boy in Wicklow! A Nation Once Again,,me arse!

    2
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