Fears for broadband plan after bidder drops out of race

There are growing concerns that the Government’s National Broadband Plan could be derailed as one of the leading bidders dropped out of the race.

Siro, a joint venture between the ESB and Vodafone, told Environment and Communications Minister Denis Naughten there is no longer a “business case” for its continued participation.

It leaves just two potential bidders — Eir and Enet — in the procurement race.

In the Dáil, Fianna Fáil’s public expenditure spokesman, Dara Calleary, said the move represented a major blow to the process, which aims to bring high-speed broadband to rural Ireland.

Mr Naughten said that he received “detailed submissions” from the two remaining bidders as per yesterday’s deadline, marking another milestone in the process: “We are one of a few countries in the world that has a compelling competing operator to the incumbent.”

Mr Naughten said the scheme remained on track and on schedule and that the Government’s plan would put every placename on the digital map.

“The facts are that close to seven out of 10 premises now have access to high-speed broadband,” he said.

“Within a year that will rise to nearly eight out of 10 premises and by 2020 nine out of 10 premises or 90% of premises the length and breadth of the country will have access to high-speed broadband.”

It will be several months before the final bids, which will determine the overall cost of the plan, are submitted. The first homes are not expected to be connected until late 2018 or 2019.

In a statement, Siro said: “Following a comprehensive review, Siro cannot develop a competitive business case to justify continued participation in the National Broadband Plan bid process and therefore has decided to withdraw.”

It said its original plan to build a high-speed fibre broadband network in 50 regional Irish towns will be unaffected by the decision.

Chief executive Sean Atkinson said the decision to withdraw was not taken lightly: “We will continue with our original plans focusing on transforming Ireland’s regional towns, putting them on a par for high-speed connectivity with cities like Tokyo and Hong Kong.”

Siro’s decision comes five months after the Government removed 300,000 homes from its original plan and placed them back into Eir’s commercial rollout plan.

Vodafone Ireland chief executive Anne O’Leary said: “Naturally we are disappointed that Siro is withdrawing from the National Broadband Plan tender, but our vision of creating a gigabit society in Ireland is unaffected as the Siro rollout continues as part of our €450m investment with ESB.”