Rural broadband scheme funds axed

Three Ireland has said there will be "virtually no price change" for 85% of its rural customers following the Government’s withdrawal of funding for the National Broadband Scheme (NBS).

The company has been paid some €80m since 2008 to bring broadband to parts of Ireland where it was previously unavailable.

However, this funding is set to expire at midnight on August 25, and Three Ireland is set to charge a “competitive” rate for providing the service.

It is being reported that the removal of funding will result in price hikes in the region of 75%, or around €180, for some 45,000 households and businesses in rural, broadband blackspots — while a minimum broadband speed will no longer be guaranteed.

However, a spokeswoman for Three Ireland said that despite running the scheme at a loss, and providing first- time broadband to 238,000 premises, it would continue to provide a service to areas covered by the scheme at “competitive prices”.

“This will mean virtually no price change for customers who currently don’t use more than 15 GB per month — 85% of customers on average. We are also investing further in our network and will roll out our 4G network, bringing high speeds to every part of the country,” she said.

Three Ireland said its new, monthly charge will give direct debit customers a 15GB allocation for €21.99, compared to the price on the scheme of €20.32 for 40GB.

For customers who would like to increase the data allocation, they can choose a Broadband Pro plan which gives 60GB for €34.99 per month.

“This is in line with our other broadband propositions currently available in the market. Broadband is crucial for modern-day living and working and in particular for rural development. Despite the end of the NBS, Three is committed to providing a broadband service nationwide to ensure Ireland is positioned for further growth and development,” said the spokeswoman.

Billy Gray, Irish Cattle and Sheep Farmers’ Association rural development chairman, has expressed concern at the news.

“In this day and age it is simply not acceptable that whole swathes of rural Ireland would be without quality and affordable broadband. It would be akin to the Irish government of the late 1960s announcing that it couldn’t afford to deliver electricity to all rural areas. The Government’s whole broadband strategy is a farce,” said Mr Gray.

Fianna Fáil communications spokesman Michael Moynihan hit out at the Government’s withdrawal of funding for the NBS, saying it had “abandoned” rural Ireland.

“This represents another facet in the Government’s policy of dismantling rural Ireland; which will be left behind in any economic recovery. There is now a two-tier recovery and a two-tier broadband service, which the Government seems happy to stand over.”

He said it was “a deeply cynical move” to withdraw funding for a scheme which guaranteed basic broadband services at a reasonable cost and called for the funding to be reinstated.