The provision of broadband services is, in the first instance, a matter for the private sector. Broadband service providers operate in a fully liberalised market, regulated, where appropriate, by the independent Commission for Communications Regulation, ComReg. The role of the Government is to formulate regulatory and infrastructure policies to facilitate the provision of high quality telecommunications services by competing private sector service providers. The Central Statistics Office Information Society and Telecommunications survey has found that in the first quarter of 2007, 57% of Irish households had access to the internet compared to the European Union average of 54%. Of Irish households with Internet access in the first quarter of 2007, 54% had a broadband connection. This represents a significant increase on the 2006 figures when 26% of such Irish households had a broadband connection.
Although broadband is now widely available in Ireland there are still some parts of the country where the private sector will be unable to justify the commercial provision of broadband services. These areas are being addressed by the National Broadband Scheme (NBS), which will provide broadband services to areas that are currently unserved, and will ensure that all reasonable requests for broadband are met. The first phase of the NBS procurement process (Pre-Qualification Questionnaire (PQQ)) is now complete, and four candidates pre-qualified to enter the next phase of the procurement process. Following the withdrawal of the IFA/Motorola Consortium as a candidate, the remaining three candidates have now commenced "Competitive Dialogue" with my Department and are developing their proposed solutions to meet my Department's requirements for the delivery of broadband to the unserved areas of the country. It is anticipated that a preferred bidder will be selected and appointed in July 2008, with roll out to commence as soon as possible thereafter.