Telecoms offer to co-fund school costs

The telecoms industry is proposing to co-fund the cost of providing high-speed internet services to Irish schools to stave off the threat of a Government levy, writes Jamie Smyth, Technology Reporter

Vodafone, O2 and Eircom are believed to be willing to provide an initial €3 million to connect up to 800 schools to high-speed broadband connections. But the three biggest telecoms firms want the State to pay a proportion of the estimated €9 million annual running cost of the scheme.

IBEC's Telecoms and Internet Federation (TIF) is preparing a formal proposal to submit to the Government. But the Government has already received a discussion paper with the estimated costs of the scheme.

It is believed the telecoms industry favours a voluntary contribution scheme, whereby firms can choose to pay an amount they can afford. They would also benefit from the school scheme by making some revenues by providing broadband connections.

Earlier this year, the Minister for Communications, Mr Ahern proposed introducing a levy on telecoms firms' turnover to pay for providing broadband to primary and secondary schools.

The telecoms industry has campaigned strongly against this type of levy and has told the Government that it may run contrary to European law. Last month a decision by the EU Court of Justice found that the Italian Government should not be allowed to place a levy on telecoms firms to raise finances.

However, a spokesman for the Minister for Communications said yesterday the levy was still being considered as a way to provide broadband to schools. He said the Government was clear that it would provide high-speed internet services to all primary and secondary schools shortly.

Mr Tommy McCabe, TIF director, said the entire telecoms industry would address the broadband to schools issue and not just the three biggest firms. He said no final submission had yet been made to the Government.