Ireland is now a leader in Europe in the roll-out of full fibre networks.
Yet the majority, almost 90 per cent, of Irish businesses are not using the technology at all. Instead, thousands of businesses continue to get by on outdated and unfit-for-purpose copper broadband.
Full fibre describes fibre-to-the-premise (FTTP) broadband, considered the gold standard, which provides a direct fibre optic connection into a home or business bringing with it advantages of higher speeds, more reliable connectivity and enhanced security.
In contrast, other types of fixed broadband rely on copper cables for part or all of the connection, which can limit speeds and resilience.
READ MORE
The benefits of enhanced connectivity for businesses include faster uploads and downloads, seamless file sharing and use of cloud services, smooth, no-lag video calls or glitch-free payment terminals.
Often this isn’t the norm in businesses using slow copper broadband that is long past its sell-by date.
FTTP is a future-proofed technology. As a business grows, its data demands do, too. A full fibre connection allows businesses increase bandwidths from 1 to 2 to 10 Gigabits, all the way to 50 Gigabits, eventually.
[ Cork town to be first fully connected to fast broadbandOpens in new window ]
As business operations integrate technologies such as AI, they need higher speeds and larger bandwidths, FTTP can accommodate these requirements with ease.
Enhanced security is another aspect. Fibre-optic cables are harder to tap into, reducing risk of data breaches or unauthorised access. Equally, fibre optic technology is less prone to weather-related outages, helping businesses stay connected and productive.
FTTP delivers on customer experience, too. Reliable internet ensures smoother transactions, faster website performance and uninterrupted customer communications, leading to greater customer satisfaction.
Some 76% of premises can now access full fibre broadband. In 2015, when Siro began rolling out Ireland’s first full fibre broadband network, few predicted in over a decade Ireland would be drawing ever closer to being fully fibred.
Now, through the National Broadband Plan underpinned by public and private investment of up to €5 billion and an engaged telecoms sector, Ireland achieving the Government’s target of gigabit connectivity for all by 2028 is possible.
With Government often criticised over its delivery of strategic infrastructure, this achievement is noteworthy.
In residential urban areas, where three commercial network operators, including Siro, are rolling out full fibre broadband, take-up at 50 per cent is relatively positive. This figure continues to grow, with FTTP broadband reaching new areas all the time and consumers, often in long-term contracts, moving to full fibre broadband once these expire.
In rural intervention areas, public monies of up to €2.7 billion are being invested to roll-out full fibre. There, take-up at 35 per cent is reasonable with a pathway for further growth and taxpayers’ investment protected by virtue of single fibre operator with no competition to dilute its market share.
[ National broadband plan to require additional €80mOpens in new window ]
Understandably, the focus of policymakers and industry has, to date, been on rolling out full fibre broadband networks. Yet it’s a mistake to believe there are no more connectivity challenges.
In our SME business sector, critical to Ireland’s prosperity, there remains work to do. Here, utilisation of fibre connectivity is essential, but underwhelming.
SMEs employ almost 70 per cent of our workforce. They matter hugely to our economy. More than 370,000 Irish businesses use broadband, but only 10 per cent use full fibre.
A recent National Competitiveness and Productivity Council (NCPC) report, inadvertently, exposed Ireland’s business connectivity challenge. Noting the need for improved SME and public sector productivity, particularly as Ireland’s FDI bonanza faces headwinds, the report calls for greater investment in digitisation and advanced technologies, including AI.
AI is only as powerful as the broadband network supporting it.
AI’s future depends on fibre networks capable of supporting trillions of transactions, cloud-based learning models, and the integration of AI across strategic industries like healthcare, manufacturing or agriculture.
The NCPC Report does not mention broadband, at all.
SMEs challenged over the past decade by Covid, supply chain issues, inflation or skill shortages can be forgiven for not prioritising connectivity, but policymakers can convince them of its importance.
We need greater ambition.
Set both a national target, and timeline, for fibre take-up and put in place policy levers to achieve that goal. In parallel, provide a date for Ireland’s copper broadband network to be switched off. The European Commission has proposed 2030.
Ireland recently submitted to the European Commission: “Ireland believes that this should be left up to the operators to decide”.
A representative of the operator responsible for switching off Ireland’s copper network, worryingly, suggested it would be beyond 2030 before it even started.
A telecoms operator dictating the pace of technological adaptation, has not previously served Ireland’s interests well.
The UK will switch off copper in January 2027, Spain recently completed their switch off, France and Scandinavian countries are well on the way to doing so. Importantly, in all, there have been safeguards for vulnerable customers.
Incentivising SMEs to switch off copper merits consideration. SMEs can already avail of digital grants to upgrade websites, train staff or build eCommerce platforms, but not to install fibre broadband, why not?
If we are serious about elevating the digital capability and productivity of Ireland’s domestic economy, our SMEs need a high standard of connectivity to do so.
The good news for business is, unlike other essential infrastructure, they don’t have to wait for it. For many, it’s already outside their door.
John Keaney is chief executive of Siro
