UPC higher speeds will pipe Ireland up broadband league

IRELAND'S POOR broadband infrastructure got a shot in the arm yesterday with cable company UPC's announcement of a new high-speed service and the emergence of E-net as the preferred bidder to run networks in 66 additional towns.

E-net already has the contract to run the Government's metropolitan area networks (MANs) in 27 towns. Yesterday, chief executive Conal Henry said he hoped to agree a contract with the Department of Communications, Energy and Natural Resources by the autumn on phase two, which covers an additional 66 towns.

With a few exceptions, these networks are already built, at a cost of about €80 million, an amount similar to the sum required for the first 27. He declined to comment on the length of the contract. The phase one contract for the first 27 towns runs for 15 years.

MANs are Government-provided high-speed fibre-optic rings being built around towns to provide broadband internet services.

E-net rejected criticisms there has been a poor uptake or that it is replicating Eircom's infrastructure. Mr Henry said 32 different telecoms providers were now using MANs to deliver broadband.

In the year to April last, E-net reported a loss before the deduction of interest, tax and amortisation expenses of €500,000 on revenues of €7.2 million. Mr Henry said he expected the company to be profitable "before the end of this calendar year".

Separately, UPC, which operates the Chorus and NTL cable TV networks, will offer 20Mbit/sec broadband from July 1st at a cost of €40 a month. It will be available to 422,000 homes in Dublin, Galway, Waterford, Limerick, Cork and some other major towns.

The firm claims this will propel Ireland from 25th to 10th place on the OECD table of broadband speeds. The highest speed service offered by Eircom is 12MBit/sec at a cost of €204.49 per month

On Wednesday, UPC will join with Digiweb and Magnet Networks to host a conference on real broadband alternatives. Magnet chief executive Mark Kellet said the intention was to demonstrate future demand for broadband.

On Thursday, Minister for Communications Eamon Ryan will reveal his anticipated next-generation broadband strategy.