Vodafone and ESB have come together in a joint venture which will invest €450 million over the next four years in delivering Ireland's first 100 per cent fibre-to-the-building broadband network. The joint venture was formed in July of this year but was subject to approval by the European Commission. This approval has now been granted and the two companies are engaged in formally establishing the joint venture firm which will employ 60 people.
According to Minister for Communications Alex White, the commission decision represents good news for both broadband customers and providers. "It will drive competition in the sector, while giving 50 towns nationwide access to a market-leading, future-proofed broadband service. It's an important project which complements the Government's national broadband plan to ensure that all of Ireland's regions have access to fast broadband. It is also hugely significant in terms of the National Digital Strategy which aims to get more small businesses online. High-speed broadband is a crucial element for Ireland's future competitiveness and this project will help ensure Ireland is better-connected than most countries in the world."
ESB began a tender process in September 2012 to find a suitable joint venture partner to deploy a fibre-to-the-building network utilising ESB Networks’ overhead and underground infrastructure. Vodafone emerged as the preferred bidder in September 2013, when both companies entered exclusive negotiations and the agreement to form the new joint venture company was signed by the two in July 2014.
The new network will offer broadband speeds from 200Mbps to 1000Mbps, initially reaching 500,000 premises in 50 towns in the first phase. Network rollout will commence early in 2015 and phase one is expected to be complete by the end of 2018, with further scope for a second phase after that. The first technical trials are already under way in Cavan town.
The network will offer open access to all authorised broadband operators in the country on a wholesale basis. This means that other operators can resell the fibre product to their customers and it is hoped that this will help stimulate the development of new services and boost retail competition in the broadband market for all Irish consumers and businesses.
World of possibility
“This project will help to propel Ireland into the ranks of the world’s fastest broadband countries and open up a new world of possibilities for Irish consumers and businesses”, says Vodafone chief executive Anne O’Leary. “It is consistent with Vodafone’s strategy of investing in ambitious projects and technology to deliver the most innovative services. This open-access network, made possible by the coming together of two strong established brands – Vodafone and the ESB – will revolutionise consumers’ and businesses’ experience of broadband.”
Data released by ComReg earlier this year showed that 43 per cent of fixed-broadband customers in Ireland receive speeds of less than 10 Mbps.
“Direct access to 100 per cent fibre broadband of up to one gigabit per second will transform the internet experience of small and medium businesses, remote workers and consumers,” she says. “This will help regional areas to compete more effectively for investment and jobs, and SMEs to work more efficiently, enhance their online presence and reach new markets and customers. Consumers will enjoy innovations ranging from home entertainment to e-health and virtual education. Home working will also become a real option for more people, helping Ireland to develop its smart economy. With global internet traffic set to triple in the next five years, the speed and reliability delivered by 100 per cent fibre broadband will ensure Irish customers can lead the digital lives they want.”
According to ESB chief executive Pat O’Doherty the project represents a major milestone for the organisation which has invested €6 billion in recent years in transforming and modernising Ireland’s electricity grid so that it can deliver this type of service.
“It’s consistent with ESB’s strategy of innovating, modernising and working in collaboration with other industry leaders,” he notes. “The fibre-to-the-building broadband network will be the most significant development in Ireland’s broadband sector to date and will be a real boost for regional Ireland and the economy as a whole. We will create an entirely new type of connectivity – seamless, instant and powerful - so that people in towns like Cavan can have the same amazing online experience as Tokyo.”
Hyper-connected future
“Vodafone has the best mobile network in Ireland and now this joint venture will bring the best broadband service to Ireland,” says O’Leary. “Vodafone is delighted to partner with ESB to make Ireland the first European country to roll out nationwide fibre-to-the-building broadband on electricity infrastructure, making a hyper-connected future a reality for hundreds of thousands of Irish people and businesses, and reversing the digital divide between the capital and regional towns in the process.”