Dispute hindering broadband growth

A growing dispute between Dublin Corporation and several telecommunications companies is understood to be delaying the rollout of high-speed broadband technology in Dublin.

It now looks likely that the matter will have to be resolved by the Office of the Director of Telecommunications Regulation (ODTR), although one telecoms company has said it is more likely the case will go to the High Court.

The dispute centres on the sale of extra ducting in underground trenches where telecoms companies are laying broadband networks. Ducts are the pipes through which fibre optic and high-speed cable are laid.

In recent weeks Dublin Corporation has rejected applications by telecoms companies to dig roads because the companies are refusing to sell the corporation additional ducting it has required them to lay.

Dublin Corporation says it is buying the additional ducting to sell on to other telecoms companies to minimise disruption to roads.

However, a number of telecoms operators have claimed that Dublin Corporation is hoping to profit from the sale of ducting by acting as a broker to other telecoms companies.

It is understood Dublin Corporation is proposing to buy additional ducting at a rate it believes will cover its costs for trench inspection and future damage. It will then sell on this ducting to other operators at a price, in some instances up to 80 per cent higher than the original purchase price.

According to a Dublin Corporation spokesman: "The sale price will be determined to ensure that purchasers of this ducting will not enjoy unfair competitive advantage. Any `surplus' earned by the corporation will be used to finance the cost of its roadworks control operation."

The telecoms operators have said they do not believe Dublin Corporation will handle the brokerage process efficiently, and they are better positioned to manage the allocation of additional ducting among themselves.

Already telecoms operators Ocean, WorldCom, Esat and NTL install ducts for each other on some routes, and are in constant contact about their network rollout strategy.

However, this is done on a case by case basis, and there have been instances where additional ducting has been laid and the telecoms operator has refused to sell it on.

Dublin Corporation is now calling for a clear ruling on telecoms-related roadworks. In a statement it said: "There is a clear need for new legislation to end the right telecoms operators have to undertake roadworks and to enable local authorities to impose charges.

"The corporation will continue to press for the necessary legislative changes."

Meanwhile, telecoms operators contend that the corporation has no legal basis for imposing additional ducting requirements on them.

One telecoms operator has said the requirement is costing it significantly more to lay a network in Dublin than it has anywhere else, including London.

Another operator estimates it is costing up to 45 per cent more than it planned to deploy its network.

Additional ducting requires larger trenches, and some telecoms operators say where they originally planned to lay cable in the footpath - minimising disruption - they now have to lay it in the road. Such action requires night work, immediately increasing costs, and more expensive materials for coverage against traffic.

It is understood Dublin Corporation is seeking to meet with telecoms operators soon to try and reach an agreement.