45126-Invest. Qual-No111

Investment in Qualitytelephone networks. It is widely believed that broadband serviceswill be an essential aspect of future telecommunications and all thebusiness and social activities that use information technology. In itsaction plan on the Information Society, New Connections(Department of the Taoiseach, 2002b), the Government sets out theobjective for Ireland to be in the top decile of OECD countries forbroadband connectivity within three years. This aspiration wasmodified and further reinforced in the Programme for Government,2002, to take account of the possible use of fiscal instruments and toensure adequate rural access. At present Ireland falls far short ofthese goals.In developing a national strategy for broadband investment andservices there a number of complexities that must be taken intoaccount:●●Communications infrastructure differs from most other types ofinfrastructure in that while it may have the physical capacity tolast many years, the speed of technological advancement mayrender some communication technologies obsolete much morerapidly than in other sectors. Thus, it seems necessary to recoverthe cost of investment more quickly and to consider carefullyvarious ways in which infrastructure might be delivered;Supply of broadband infrastructure can stimulate demand forbroadband services. Consequently, the policy problem can notbe adequately thought of as balancing supply and demand.Demand and supply can be in balance at either a high or lowlevel. It is possible to become trapped in a low-demand, highcost,equilibrium.● A given level of broadband connectivity can be achieved by awide variety of technological approaches, a combination ofwhich may be suitable given the state of the existing backbonenetwork and the population density characteristics of Ireland.Not surprisingly, the resultant public policy will also be a complexmix. Policy must ensure sufficient investment to guarantee thatIreland has a leading role global information economy, determinethe respective roles of the public and private sectors, set prices that478