What have these two men in common?


Irish Comms Minister Noel Dempsey and North Korea's Kim Jong II at the UN sponsored Conference for Failed Broadband Countries.

Answer: Both try to slur critics of their failing policies as "damaging the nation's international reputation":

Irish Communications Minister Noel Dempsey:
"I am concerned that some commentators overplay the so-called 'broadband failure' in Ireland. They risk unnecessarily damaging Ireland's international reputation."
(from Noel Dempsey's speech 'Our Future: Living and Learning with Technology' at the broadband conference, Galway, 26th April 2006)

North Korean leader Kim Jong ll:
"[They are] damaging our republic's international reputation. [This] is a criminal act of anti-nationalism and will never be forgiven."
(from REUTERS , Seoul, Jul 30, 2004)

Dear Minister Noel Dempsey,

where did your speech writer come up with this idea? If you are serious with this notion, and this is not just a cheap slur on the critical commentators of Ireland's Internet and broadband development, would you mind and provide the public with some reference how those comments on Ireland's disastrous position in all European and OECD league tables could damage Ireland's international reputation?
Would you not rather agree that Ireland's unbelievable poor standing itself (for an English speaking, young and educated country) in each and every broadband league table – still second last in the EU-15, only Greece is worse off – is the damaging factor to Ireland's international reputation?

We, the critical commentators, have constructively told the DCMNR since many years that with a powerless, lame, toothless and spineless regulator like ComReg, the incumbent, in the hands of mighty international "vultures", will play havock with Ireland's broadband future, i.e. will hinder the roll-out of broadband at every turn for the sake of short-term profit from moonpriced dial-up Internet billing.
From early on we have made the Department aware how regulator ComReg systematically blows its own trumpet and consistently misinforms public and decisionmakers alike about our failure with Internet and Broadband, leading to misinformed policies.

All to little avail it seems.

Your speech writer still rather trusts ComReg's misinformation or even apes Eircom's PR bullshit.

After slurring the critical commentators of Ireland's broadband development you go on to state:

1."We have seen significant improvements during 2005 and in the first quarter of this year. There are now over 320,000 broadband subscribers in Ireland, a figure that is growing rapidly. In fact, the market more than doubled in twelve months. That was twice the rate of growth in the EU broadband market. I believe that this is a clear signal of the strength and demand in the broadband market in Ireland. It is fully anticipated that we will reach our target of 400,000 broadband subscribers by the end of this year."

Note to your own critical faculties:

With 320 000 broadband subscribers, Ireland has got a broadband penetration of 8 subscriptions per 100 population, which leaves us exactly at second last place in the EU-15. Remember your own department's policy directive of 2004 to ComReg which demanded: "By mid 2005 Ireland is to reach at least the EU-15 average with regards to end-user broadband take-up."
So you proudly announce now "It is fully anticipated that we will reach our target of 400,000 broadband subscribers by the end of this year." Is it "our target" now to stay at second last place in the EU-15?

2. Broadband availability is now on a par with EU 15, with over 80% of telephone lines now connected to broadband enabled exchanges.

Note to your own critical faculties:

David McRedmond of Eircom gets paid millions to systematically mislead the public about Eircom's failure to provide DSL infrastucture in Ireland that is en par with that of Europe. Your speech writer should be ashamed to ape Eircom's recent press advertising campaign (which is currently before the ASAI).

Eircom's recent baseless press advertising claim to hide the fact that less then 60 percent of Irish residential telephone customers can currently get DSL broadband.
Fact is: DSL availability in Ireland is second worst of the EU-15 countries.

3. The price of residential and SME broadband continues to fall, and is now 20% below the EU average.

Your speech writers should finally stop to believe the nonsense they are told by ComReg, whose main agenda seems to be to rose tint the situation.
Just have a look at the latest Forrester table of incumbents' broadband pricing in Europe. We are not suggesting that Irish broadband pricing is still the hindrance to take-up as it had been in the past, but is it really necessary to talk bullshit (20 % below EU average) which is not supported by fact? Irish prices are near the EU average, but not below, or even 20% below. Irish prices have fallen by 25% since 2004, but not at the rate the average Western European prices have fallen, which is 35%. As we have so much catching up to do, we should have the best DSL coverage and the lowest prices.



Noel, in an effort to stop any further embarrassing bullshit of this sort being brought upon your audiences, we'll enclose this practical gadget for your convenience.
But perhaps a word with your speech writer is just as fine and you can pass on the bag to one of your ministerial collegues?



Regards
ComWreck.com

P.S.:

We are aware that you have now acknowledged that regulator ComReg is "less muscular" ("The other arm of the Government's telecoms policy, regulation has proven to be less muscular... I am convinced that we haven't the regulatory framework in place that will allow for the creation of competition in a speedy and timely manner." Noel Dempsey, Croke Park Conference Centre, 27 April 2006). We have been trying to make you aware of this detrimental fact for the last four years. Our description of the regulator as toothless in 2004


has now been confirmed by independent analysts citigroup in their latest report on Eircom.
May we suggest this document as a must-read for everybody in your department, and also for everybody in the Oireachtas Committee for Communications? Citigroup cannot be accused of having any political bias other than looking after the profits of investors.


Some quotes from the citigroup report about the "quality" of ComReg and the dire consequences:

(page 4) "Fundamentally the structure of the Irish telecoms market has remained unchanged in the past year. As anticipated in our last major study the Irish regulator (ComReg) remains essentially toothless. As a consequence key elements of the regulatory framework necessary to facilitate competition remain absent. In the meantime eircom has maintained its grip on the SME and Consumer markets (e.g. in broadband eircom continues to win 4 out of 5 DSL additions) while redoubling its efforts in the large corporate market with some notable success. If anything eircom has enhanced its position in the Irish market over the past 12 months."

(page 12) "However, currently the above process [LLU] has no basis in Irish legislation. Hence, ComReg’s extreme reluctance to issue any meaningful Directions in the past year, as eircom can simply challenge the process as having no legal basis. The Statutory Instrument aims to close this loophole and should reduce eircom’s ability to frustrate the regulatory process and speed up decision making. Unfortunately, even here there are signs of continued slippage as the Bill was anticipated in November 2005 and the current timeframe remains unclear. "

(page 13) "eircom has become a text book example of how to play the regulatory game and win. High retail prices for line rental and broadband in Ireland create a potentially attractive environment for competition. Yet the lack of robust regulation — specifically a workable unbundling process — combined with ComReg’s apparent inability to police margin squeeze continue to undermine competition."

Despite these minor improvements, progress is still glacially slow. In many ways the ULL process has not moved forward at all in the past 12 months.

(page 15) On the MANs
"On the face of it the entry barriers to a new player looking to compete in the Irish market appear to have been dramatically reduced by the government’s investment. In reality the lack of a well-defined and enforced regulatory framework undermines the impact of the investment."

"To date demand for the MANs has fallen well short of expectation with the result that Enet lost c€4m last year. It is less than clear to us why Enet would want to bid to manage the next 93 MANs given that by definition they will be in second and third tier markets where the chances of achieving economic scale are even more remote than in the initial 27 MANs."

Download (700KB) the complete citigroup report on eircom.

Good morning ladies and gentlemen. Let me first say a sincere thank you to the organisers of this event, the Galway Chamber, their warm welcome this morning and for the invitation to address you here in the Radisson SAS.
The Irish telecoms industry has recently been subject to much change and 2006 promises to be yet another exciting year. Recently, we have seen:
· the incumbent teleco has been eyed-up by two different buyers,
· the cable industry is going through a merger,
· 3G services have been launched in Ireland,
· cross-border mobile phone roaming charges have been abolished,
· wireless broadband has established itself in the marketplace,
· VoIP services are available for residential and business users,
· and new broadband services and prices, as well as new service providers, have been launched.
Broadband is a priority issue for me and this Government. I have to be frank with you here this morning and say that I am tired of hearing so much negativity around the issue of broadband. I fully accept that we have a way to go and ground to make up, I would be the very first to accept that but can we just stand back and look at some of the achievements and progress that we have made in the recent past.
We have seen significant improvements during 2005 and in the first quarter of this year. There are now over 320,000 broadband subscribers in Ireland, a figure that is growing rapidly. In fact, the market more than doubled in twelve months. That was twice the rate of growth in the EU broadband market. I believe that this is a clear signal of the strength and demand in the broadband market in Ireland. It is fully anticipated that we will reach our target of 400,000 broadband subscribers by the end of this year.
It is important to evaluate our progress in a balanced manner and recognise achievements where they have been made. I am concerned that some commentators overplay the so-called 'broadband failure' in Ireland. They risk unnecessarily damaging Ireland's international reputation. Let us consider where we stand in early 2006:
· Broadband availability is now on a par with EU 15, with over 80% of telephone lines now connected to broadband enabled exchanges.
· The price of residential and SME broadband continues to fall, and is now 20% below the EU average. In fact, it is possible to get broadband for less than €20 per month, compared to over €130 in 2002.
· The speed of residential broadband continues to improve. 1 megabit is now the standard basic broadband, but speeds of 3 and 4 megabits are available for residential users, and higher again for business users.
· In terms of large corporate customers and foreign direct investment, we have amongst the lowest costs in Europe in terms of international connectivity and private networks and the Government's open-access MANs ensure that large businesses throughout Ireland can get competitive priced services.
Broadband communications is an essential building block for future economic development, particularly as Ireland moves towards a more knowledge intensive economy.
What is central to driving broadband take-up in Ireland? The answer is both competition and demand stimulation. I am determined to facilitate more competition in the broadband market in Ireland. I will continue to ensure that the Irish consumer benefit from more competition - both in terms of greater choice of vendor and better priced services. I am using the two arms of telecoms policy to drive competition into the market place - they are Government investment and regulation.
The first phase of Metropolitan Area Networks have been completed. All 27 MANs are now being operated by E-Net. In little over a year since completion, these MANs are already carrying commercial traffic. These operator neutral, fibre-optic rings are facilitating the provision of services by alternative providers in regional cities and towns. Their first customers are the large businesses that have chosen to locate in regional towns across Ireland. The MANs will facilitate new entrants, new services and more competition throughout Ireland.
The second phase of the MANs programme, which was recently endorsed by the European Commission, is underway. The Commission took the view that these carrier-neutral, open-networks will enable all operators to offer high-speed broadband services to businesses and citizens in the towns concerned and that the programme will boost competition and is fully in line with the Commission's policy to promote broadband in areas which would otherwise miss out. This investment opens up the possibility of next generation services and future proofed networks throughout the country and will help combat any regional digital divide.
In addition to Government intervention, the market is also intensifying competition. Significant private investment has been made in DSL, wireless broadband, cable and satellite broadband, which will also increase competition between different types of cable, wireless and DSL providers. All these platforms are expanding.
The other arm of the Government's telecoms policy, regulation, is also driving competition into the telecoms market. You are all aware that DSL, with three-quarters of the market, is the largest access mode. It is essential that competition is increased within the DSL platform, as well as between different infrastructures. Government policy is clear on this - it is implementation of full local loop unbundling. I am disappointed that BT have withdrawn from these negotiations. I intend to address competition issues in the forthcoming communications miscellaneous provisions bill.
From the consumer's perspective, it should be a relatively smooth and seamless process of switching between broadband service providers. The way to hold customers is to provide a superior service that exceeds their expectations.
Consumers have benefited from being able to switch mortgage providers, banks, health insurance providers and mobile phone companies. I am determined to see broadband consumers enjoy the same convenience and benefits.
And what about the future of broadband in Ireland? On the demand side, my Department recently ran a public consultation on broadband seeking views on the issue of take up and demand stimulation. I believe that this is another area where current efforts need to be augmented if we want to push our patterns of take up beyond that which is considered 'normal'.
I am ambitious of Ireland, for this economy, and the roll out of broadband infrastructure and services is a key component of moving Ireland to the forefront of knowledge-based economies in the world. Broadband connects. It enables collaboration, a central pillar of the knowledge economy. It spreads valuable information throughout the economy connecting us all.
Today, you will be discussing the use of broadband. I believe that broadband will have enormous impact on small and medium business in terms of improving efficiency and competitiveness. Greater efficiency can be achieved, for example, through controlling operational costs and supply-chain management using broadband. Similarly, broadband can impact on competitiveness by providing a new and far-reaching sales channel and improved customer relationship management. This is a particular segment of the market, which requires a new focus, particularly in relation to migration of current narrowband SME users to broadband products.
In the area of health services alone, the synergies that broadband could release could save hundreds of lives a year and improve the overall effectiveness of our health service. For example, in the UK BT has implemented the teleradiology solution, BT Radworks, which enables connected hospitals to share each other's consultant radiologists. This has resulted in the time taken for an on-call consultant to view an x-ray image from 18 minutes to a mere five or six minutes- a reduction of some 66 per cent
In addition, there is a need to demonstrate the applications of broadband and raise awareness with the domestic sector as well. I am happy to report that progress has been made with this segment of the market with broadband take up by households now estimated at over 20%. We should recognise this achievement, but we should not be complacent. It is for this reason that my Department along ComReg will be hosting an event in the autumn aimed at raising awareness of broadband and some of its practical applications.
Broadband will also have an impact on how citizens live their lives. My Department and the Department of Education are working in partnership with the Telecommunications and Internet Federation to bring broadband into every school in the country. Already, we have enabled over 3,200 schools, in one of the largest IT rollout projects in the State, and I expect the final batch to be enabled shortly. Broadband in the school has the potential to equip a new generation of workers, researchers and innovators for the future.
Each time I visit the Digital Hub I am astounded by the innovations that I see in the digital media market place. It is one of the most exciting areas in the entire ICT sector. The Hub is currently going through a large development phase, valued at almost €120 million, to accommodate the rapidly growing digital media cluster.
In this increasingly connected but competitive global economy we should not loose sight of what it takes to stay ahead. I firmly believe we should acknowledge the significant progress made to date. Equally, we also need to accelerate and deepen efforts in key areas where ground needs to be made up. We need to keep up, not just catch up!
I thank you for this opportunity and wish you an engaging and enjoyable conference on the uses of broadband.
ENDS
For further media information, please contact:-
Grace Cappock, Press Advisor: Office: +353 1 678 2440 / Mobile: 087 202 4971
Ken Cleary, Press Officer: Office +353 1 678 2441 / Mobile: 087 905 9618
Email: press.office@dcmnr.gov.ie



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