Turnover at fibre optic group rises to €9.4m

E-NET, THE operator of the State-owned metropolitan area networks (Mans) in 93 cities and towns, had a turnover of €9.4 million last year, an increase of 30.5 per cent, writes JOHN COLLINS

Although the company is still lossmaking, it expects "double-digit" revenue growth this year, which will see it move to profitability.

E-net chief executive Conal Henry said he was "very happy with the year we've just put in" and that the firm was now trading profitably on an ongoing basis.

Established in 2004, E-net won the contract to manage, maintain and operate phase one of the Mans scheme, which involved the roll out of fibre optic networks in 27 provincial towns to allow suppliers to provide broadband access and next-generation services. E-net gets a cut of the revenue for wholesaling services on the networks.

Both E-net and the Mans project were heavily criticised by Eircom for replicating its infrastructure. The State invested around €80 million in the first phase of the project and Minister for Communication Eamon Ryan recently said that a second phase would cost €98 million.

All the major telecoms groups, including BT, Vodafone, O2, Smart Telecom and UPC, with the notable exception of Eircom, are now using the Mans.

Earlier this year, Vodafone signed a €17 million 15-year deal to access the Mans, and E-net now has a total of 35 service providers accessing the networks.

"We are discussing with Eircom working in partnership on a number of things," said Mr Henry. "The relationship is strengthening all the time."

In July, E-net was awarded the contract for the second phase of the project, which includes high-speed networks in another 66 towns.

"Phase two is twice the number of networks with half the population," said Mr Henry. "It will have a different impact on the market - this will be about supporting wireless and mobile providers rather than foreign direct investment and IDA Ireland business parks."

The company plans to commission nine different networks each month. A process of due diligence is carried out on each network before E-net begins to offer services. Since last month, Mans in Tralee, Killarney, Castleisland, Listowel, Navan, Bundoran, Ballyshannon, Blarney and the combined Carrigaline/Ringaskiddy /Passage West network have been activated.

"Our customers are telling us where to go first. We are going where the biggest demand is," said Mr Henry.

He said E-net was very supportive of current Government policy on telecoms and would seek to be appointed as the proposed "one-stop shop" which will provide access to all State-owned telecoms access such as the ducting along major roads which is controlled by the National Roads Authority.

"Whether we are the one-stop shop or have access to it, its establishment will be very positive for E-net," he said.

Mr Henry said he expects legislation that will give effect to the new telecoms policy to be passed through the Dáil by the end of the year. This is expected to address some current legal issues about the road authority's ducting being used for telecoms.