Legal challenge to broadband tender rules

A COMPANY that provides satellite broadband services is challenging the Minister for Communication's apparent exclusion of broadband satellite companies from tendering under a scheme to provide State aid to companies to extend broadband services to remote areas.

Mr Justice Peter Kelly yesterday fixed June 10th next for the hearing of the application by National Broadband Ltd (NBL), with offices at the Georgian Village, Castleknock, Dublin.

NBL is challenging the Minister's decision of January 14th last which, NBL claims, excludes satellite broadband providers from tendering under the National Broadband Scheme and exhibits an "anti-satellite bias".

Earlier, Cian Ferriter, for the Minister, said the Minister intends to award a contract under the scheme in July next.

In its action, entered into the Commercial Court list yesterday, NBL says the Minister has devised the scheme to provide improved access to broadband internet services in areas within the State currently without such services.

To implement the scheme, the Minister had established a methodology to identify current and prospective broadband coverage within the State. This involved preparing a map of the State divided into areas where broadband is currently available; will be available in the foreseeable future; and will not be available in the foreseeable future.

To prepare the map, the Minister had invited submissions. However, while having regard to submissions from providers using digital subscriber line or wireless/mobile technology, the Minister had refused to take account of submissions from service providers that use satellite.

NBL said it had first learned of this policy in an e-mail from the National Broadband Scheme mapping team on January 14th last.

NBL claims the successful tenderer under the scheme will get State assistance to provide broadband services in the mainly rural areas where broadband services will not be available in the foreseeable future. The scheme had been approved by the European Commission last November.

NBL claims the Minister is not entitled to refuse submissions from satellite broadband providers for such services. Contrary to information provided to the commission that broadband companies here would be unwilling to provide such services without State aid, satellite providers were in fact willing to provide such services for a reasonable price and without State aid, it said.

© 2008 The Irish Times

This article appears in the print edition of the Irish Times