Smart economy plan needs more details, says Eircom chief

EIRCOM CHIEF executive Paul Donovan yesterday called on the Government to deliver “more tangible” and “more ambitious” objectives…

EIRCOM CHIEF executive Paul Donovan yesterday called on the Government to deliver “more tangible” and “more ambitious” objectives for the smart economy if it is to secure investment from the telecommunications sector.

Mr Donovan, who was yesterday confirmed as the new chairman of Ibec’s Telecommunications and Internet Federation, told delegates at the group’s annual conference that the Government has a key role in facilitating next-generation access (NGA) and urged it to be more specific on the details of its smart economy strategy.

“While most telecommunications providers are supportive of the general concept of the smart economy . . . we need much more tangible, and much more ambitious objectives if we are to deliver on the smart economy aspiration,” he said. Mr Donovan also defended Eircom’s investment record, despite what he called its “somewhat chequered past”.

“No one else has actually committed anything to NGA . . . we have committed €20 million in the face of a totally uncertain return.”

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Neelie Kroes, vice-president of the European Commission, told delegates that the future of universal service obligations for broadband, which would guarantee nationwide coverage, will depend on all stakeholders sharing the responsibility of funding the service.

“Universal service obligation has benefits beyond the telecoms sector. Any cost should not be theirs alone.”

The need to find a new commercial model for the sector was a central theme of the conference. Vodafone’s public policy director, Richard Feasey, said the industry needed to find a “sustainable economic model that supports both infrastructural investment and content creation and delivery”.

02 Ireland chief executive Danuta Gray said 65 per cent of all data traffic was attributed to 3 per cent of smart-phone users and said that instead of penalising customers, app developers and users should also be educated about how they use resources.

Suzanne Lynch

Suzanne Lynch

Suzanne Lynch, a former Irish Times journalist, was Washington correspondent and, before that, Europe correspondent