Top > Economic Affairs > The Asia-Europe Meeting (ASEM) > ASEM Seminar on the Digital Opportunity > Session 2: IT Infrastructures > Telecommunications: A Key Factor in Competitiveness, e-Business and the Information Society (Presentation)

Presentation
Telecommunications: A Key Factor in Competitiveness, e-Business and the Information Society

Mr. Declan Hughes
Department Manager of Enterprise & Trade Policy Division, Forfas, Ireland

Ireland's IT policy has been driven by the needs of the market sector with the aim of creating Ireland as a world e-business center. In addition, with respect to telecommunications, the development of a policy framework, international connectivity, country-wide roll-out, community access to IT and increasing competition and deregulation are important issues in Ireland.

Ireland is a small, open economy with economic growth over the last ten years of 9% per year. GDP levels are now above the EU average and there has been an increase in the industrial share of GDP to 42%, particularly in software and the chemical sector, in which Ireland has an advantageous position in Europe. The foundations for Ireland's success have been the competitiveness of the environment, and, in particular, FDI, which has played a key role in the development of the economy. Ireland has one of the most competitive environments in the world. Productivity has also made a strong contribution to economic growth in Ireland, largely due to the contribution of the high-tech sectors. Policy is very much driven by the needs of business, with no restrictions on capital flows, and Ireland's support of an open international trading system. A high priority is also given to a strong logistics sector, including distribution.

In the telecommunications sector, Ireland was one of the first European economies to have a totally digitalized network in the 1980's, with 2 billion euros invested in the network.

There are six pillars for success in the global e-business: the existing base of e-business activities, proven high ROI, skilled and qualified human resources, an attractive administrative and legal environment, R&D that has high specification programs, and high quality telecommunications.

The digitalization of the economy in the 1980's provided a sound base upon which to continue development of the high-tech sector. In 1996 however, it was decided that Ireland would need to further develop broadband networks, for which an Information Society Steering Committee Report was compiled in 1997. Forfas has emphasized the importance of broadband networks and recommended the following:

  • the need for a strong independent regulator,
  • the separation and upgrading of cable networks,
  • the pump-priming of broadband investment in regional Ireland,
  • the upgrading of fiber optics in industrial parks to meet the needs of enterprises,
  • the installation of ATM services, and
  • the competitive provision of broadband on a copper network.

The government fully liberalized the telecommunications market in December 1998 and privatized the telecommunications provider, in addition to selling off the cable network, on the precondition that the network would be upgraded. A high-level Advisory Committee on Telecommunications was established by the government in 1988, which made a significant recommendation to unbundle the local loop as critical to the provision of broadband and services to the information society.

In 1999 the government set aside 22 million euros to partially fund the roll-out of regional access to broadband, and a further 200 million euros has been earmarked on a technology-neutral approach with the private sector on a competitive basis. In terms of deregulation, there are now 80 licensed operators of telecommunications services in the Irish market. The cable and wireless networks have also been upgraded.

Some other telecom initiatives include a Digital Park and Multi-Media District in Dublin, and eight regional "webwork" facilities for IT intensive services in regions.

Concerning social inclusion, the government compiled a report "IT Access for All" in 2000, which identified significant groups which were in danger of being affected by the digital divide, in addition to a "Community Application of Information Technology Initiative." With regard to local loop unbundling, much work remains to be done in Ireland. Many of these issues can be dealt with on the international level.

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