Ahern says broadband prices still too high

The price of broadband is still too high and must be brought down further if Ireland is to realise its potential, the Minister…

The price of broadband is still too high and must be brought down further if Ireland is to realise its potential, the Minister for Communications Mr Dermot Ahern has said.

He was speaking at an international conference entitled Knowledge-Based Regions in the Information Society, in Killarney, Co. Kerry.

"The dramatic growth in demand for broadband has not been matched by the level of investment that is required to satisfy that demand.  There is, quite simply, a market failure," Mr Ahern said.

"The supply side is not meeting the demand.  There is no meaningful competition.  The price of broadband is still too high, particularly for ADSL, and must be brought down further if we are to realise the potential offered by the technology."

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Mr Ahern said a number of significant projects on broadband have been completed under the National Development Plan and others are nearing completion.  An "indicative" €200 million had been set aside in the plan for broadband infrastructure investment.

"Broadband is the enabler of prosperity, education and social inclusion in the knowledge economy of the future. The different platforms for delivery of broadband will all have a part to play in the lives of each and every citizen.  I have consistently held that the key ingredients for success in broadband are the "three Cs" of cost, choice and competition and I will continue driving home that message."

Mr Ahern said the widespread availability of broadband is now regarded as the "single most important factor in the promotion of competitiveness and productivity". "It is also a vital component of a more open, and participative, and citizen-focused society."