THE NEW chief executive of Eircom, Paul Donovan, has said there needs to be greater collaboration between Irish telecommunications companies. “In a world where capital is scarcer, we are seeing a dawning of the fact that we need to use our resources together in the best possible way. The worst thing we could do would be to repeat the sins of 3G where everybody in the mobile space built their own network.”
Mr Donovan was speaking yesterday at a conference in Dublin Castle, at which chief executives of Ireland’s top telecommunications companies debated the future of telecoms infrastructure in Ireland.
One of the key topics at the conference, organised by Ibec’s Telecommunications and Internet Federation (TIF), was how next-generation infrastructure should be financed. “While the necessity for next-generation infrastructure is not disputed, how it will be delivered and paid for in the current climate is a major challenge” said Tommy McCabe, director of TIF.
Mr Donovan, who took the helm in July, pointed out that, while various other companies in the telecoms industry had contributed an estimated €700 million in infrastructure each year, Eircom has invested €1.1 billion. “We will continue to invest close to that number as we renew our networks,” he said. “Eircom will play a leading role in the deployment of fibre. We need to find a way of working with everybody else so everyone’s needs are met.”
E-net chief executive Conal Henry called for more State investment in infrastructure. “There are key benefits for the State in investing in telecoms infrastructure – reductions in hospital waiting lists, greater efficiency in air travel, for example. The Government gets far-better results than the industry’s companies.”
Robert Finnegan, chief executive of 3, said, although the company engages in site-sharing, “we don’t see the need to collaborate any further”.
Delegates heard how broadband infrastructure was a key factor in entrepreneurship. National Irish Bank economist Ronnie O’Toole said a much greater proportion of Ireland’s entrepreneurs worked in technology compared to other countries. “While we’re not quite as advanced as the US in terms of the number of entrepreneurs . . . we are ahead of other European countries. Also, there are a lot of indigenous, smaller companies here, as well as multinationals, which are engaging in high-value work.”
Entrepreneur Joe Drumgoole spoke of one key growth area in Ireland: “Cloud computing is really going to put us on the map. There is a lot of investment by software companies in this area.”
Microsoft Ireland managing director Paul Rellis said Ireland had the potential to become a global leader in data storage. “The infrastructure is being developed here and the multinationals who are the main operators are based here. We really have the opportunity to become a hub in this field.”
