Vol. 485 No. 2
30 Mr. Durkan asked the Minister for Public Enterprise if she will give details of the package in relation to the proposed joint ventures telephone service; the precise composition of the company scheduled to undertake the service; the tendering procedures involved in this regard; the number of tenders received; the number of companies or groups to which a prospectus issued in connection with the proposal; and if she will make a statement on the matter. [22809/97]
Since 1 July 1997 the construction of telecommunications infrastructure for the purpose of the provision of services, other than voice telephony, has been liberalised under EU rules. This has meant that companies which propose to provide such services as an alternative to Telecom Éireann do not have to rely on leased lines from that State body, but can provide these services over their own independently constructed infrastructure or over existing private networks.
The ESB has one of the most extensive telecommunications infrastructures in the State and its corporate strategy for future growth involves the full exploitation of existing assets. The board has therefore been studying the possibility of involvement in the emerging liberalised market for telecommunications in Ireland.
The company has had discussions with a number of major telecommunications companies. These discussions culminated in the agreement announced by the ESB on 9 December to enter the market with British Telecom. BT was chosen as a partner on the basis that it offered the best commercial deal to the ESB. The deal involves the creation of a 50-50 venture between ESBI Telecoms and BT. Investment by the two partners will be approximately £75 million in the first five years, growing to £130 million over ten years. The new company, to be headquartered in Dublin, is expected to create up to 300 jobs.
The joint venture company will compete in the market by offering a range of communications products and services, initially to Ireland's business community, in preparation for targeting other customers after full liberalisation of the Irish market post-2000.
The joint venture will have immediate access to the ESB's digital microwave network and will also be able to use the company's extensive overhead electricity cable network and ducts to expand the network. The ESB network, one of the most extensive in the country, will be linked to the BT system. The formal launch of the joint venture is subject to the finalisation of all necessary legal agreements.
