Isolated houses could pay more for broadband

Thousands of people with one-off houses and new homes in isolated rural areas could be asked to pay extra costs to secure high-speed broadband.

A controversial committee report that could potentially put the brakes on the Government’s national broadband plan is due to be launched by TDs and senators today.

As expected, the report calls for a three-month freeze on the €5bn plan, and a review of whether the preferred bidder, led by businessman David McCourt, is the only viable option.

Government members’ preferences in the report were voted down by Fianna Fáil, among others. All sides will today set out their differing views on the controversial project.

One recommendation suggests that planning for new homes should include a stipulation that owners pay the cost of being connected to the broadband network. It is estimated that tens of thousands of new homes, including one-off housing, could be built during the lifetime of the preferred contract.

The Department of the Environment and Communications declined to respond to reported recommendations from the Committee on Communications until the report is published today.

Most of the committee has called for a three-month freeze of the project to force a re-examination of its €3bn in taxpayers cost and the entire tendering process.

While the report is non-binding, the Fine Gael-led Government could be forced to face a vote or a debate on the controversial recommendations in the Dáil. The issue may also feed into budget talks with Fianna Fáil — who are relied on for support under the confidence and supply agreement.

It is understood that the committee also insisted that any broadband system must not be privatised and that the preferred bidder, Granahan McCourt, could potentially be replaced by ESB or Eir.

Fine Gael’s Tim Lombard says any review of the project to deliver broadband to half a million premises could see delays of three to five years if a fresh tender is required. However, Fianna Fáil’s Timmy Dooley insists there are questions around the current plan’s capacity to deliver value for money and whether an alternative bidder could offer a better deal.

Conclusion 23 in the report, originally tabled by Green leader Eamon Ryan, recommends that the “full cost of providing a connection for every new house in the intervention area is provided for in planning conditions”.

Committee sources say it could potentially apply to tens of thousands of homes in isolated or rural areas.