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Government Privatising Broadband Network

making waves

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The Super Rich are going to make another killing off the backs of the Irish taxpayer.

The Cabinet decided this morning to use 'gap funding' to build the high speed broadband network around the country.

The government will invest up to €600million to build this network while will be given to private sector operators on a 25 year contract and these private operators will then retain full ownership of the network at the end of the 25 year contract.

Private sector to own telecoms infrastructure - RTÉ News
 


ShoutingIsLeadership

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Heard this this morning and assumed that I was dreaming.

Are we also paying for it and then privatising it?
 

ShoutingIsLeadership

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In answer to my own question, yes we are paying to give away vital national infrastructure.

What sort of gobshytes are we?
 

Harmonica

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The move will mean that private sector operator(s) who win the contracts will finance, design, build and operate the network that will bring high speed broadband to up to 927,000 premises around the country.

The state will provide capital grants to the operators, and in return will be able to set conditions which the operators will have to meet and abide by.

At the end of the 25-year contract, the operators will then retain ownership of that infrastructure, even though the state may have invested hundreds of millions of euros into it
There private operators are also financing part of this. The alternative is for the state to pay for 100%. This is similar to toll roads. The private operators might retain in 25 years but at that stage it won't be worth much. The real difficulty is who pays for the maintenance as 30MB download isn't sufficient for the next 30 years.
 

making waves

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There private operators are also financing part of this. The alternative is for the state to pay for 100%. This is similar to toll roads. The private operators might retain in 25 years but at that stage it won't be worth much. The real difficulty is who pays for the maintenance as 30MB download isn't sufficient for the next 30 years.
And the toll road operators are guaranteed a minimum income (profit) - and if they don't get it on tolls then the government carries the can - its called 'having your cake and eating it'
 

ShoutingIsLeadership

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There private operators are also financing part of this. The alternative is for the state to pay for 100%. This is similar to toll roads. The private operators might retain in 25 years but at that stage it won't be worth much. The real difficulty is who pays for the maintenance as 30MB download isn't sufficient for the next 30 years.

Why can't the State pay for it, lease it and retain ownership?
 

ShoutingIsLeadership

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And the toll road operators are guaranteed a minimum income (profit) - and if they don't get it on tolls then the government carries the can - its called 'having your cake and eating it'
No, THE PUBLIC carries the can. The government retires with their pensions
 

Harmonica

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Why can't the State pay for it, lease it and retain ownership?
Are you familiar with how the state manages anything? Who do you think the state will pay to install? The state doesn't have the expertise to determine what is required so it will just hire people in to tell them what to do. Those people will likely have worked for local telecoms companies anyway. The only different will be the state will pay 100% of unknown cost & the people implementing won't care as they'll get paid anyway.
 

ShoutingIsLeadership

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Are you familiar with how the state manages anything? Who do you think the state will pay to install? The state doesn't have the expertise to determine what is required so it will just hire people in to tell them what to do. Those people will likely have worked for local telecoms companies anyway. The only different will be the state will pay 100% of unknown cost & the people implementing won't care as they'll get paid anyway.
So, the State wouldn't be able to tender for companies to build it? Do we give away everything that we pay for?
 

beazlebottom

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In answer to my own question, yes we are paying to give away vital national infrastructure.

What sort of gobshytes are we?
the Network will NOT be built unless the Private sector do it. It is not economic to build it - if Private sector build and operates without a serious Public subsidy , it will lose potfulls of money - not what rational sensible investors do. So the alternatives are 1. do nothing and leave 700k w/o broadband and a lot of TDs without votes next time around 2. let the Stae build, own and finance it - and they will as usual make a complete and utter horlicks of it while incurring zillions in cost overruns 3. let professionals do the job but give a Capital subsidy to make the proposition sufficiently moderately ptrofitable that suitable investors will be prepared to invest/fund the project.

So whats it to be? Problem with a lot of people in this sad country is that they are scared sh*tless that someone might actually make a few bob, even when they are taking risk. This is an attitude rampant in parts of the Civil Service among clowns too stupid to understand that it is Private sector investment and consequent profits which generate the taxes necessary to pay their salaries and inflated pensions.
 

Dame_Enda

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Lessons have not been learned from the privatisation of the local loop in the hands of Eircom which held up even DSL reaching households for many years.

The govt is abrogating it's responsibility to provide broadband including in unprofitable regions.
 
Last edited:

ShoutingIsLeadership

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the Network will NOT be built unless the Private sector do it. It is not economic to build it - if Private sector build and operates without a serious Public subsidy , it will lose potfulls of money - not what rational sensible investors do. So the alternatives are 1. do nothing and leave 700k w/o broadband and a lot of TDs without votes next time around 2. let the Stae build, own and finance it - and they will as usual make a complete and utter horlicks of it while incurring zillions in cost overruns 3. let professionals do the job but give a Capital subsidy to make the proposition sufficiently moderately ptrofitable that suitable investors will be prepared to invest/fund the project.

So whats it to be? Problem with a lot of people in this sad country is that they are scared sh*tless that someone might actually make a few bob, even when they are taking risk. This is an attitude rampant in parts of the Civil Service among clowns too stupid to understand that it is Private sector investment and consequent profits which generate the taxes necessary to pay their salaries and inflated pensions.
Anti-State prejudice.

We have paid for the private sector to build infrastructure, while retaining ownership ourselves. Did you miss where I suggested leasing it to the private sector?
 

DaveM

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Why can't the State pay for it, lease it and retain ownership?
Because that would cost more in the short term presumably.

As I understand it the reason this is necessary is to see broadband reach areas where the financial case for private investment to provide the service free of incentive doesn't exist. So the government has to plug the gap if the infrastructure required for this service is to be installed.

The only difference in ownership residing with the private sector at the end of the period is that the government has to provide less capital up front as bidders will factor the residual value of the asset into their bids. And with the government still having to watch the shillings it's very much a case of a bird in the hand...

I'd wonder if what is put in now will not be obsolete 25 years from now to be honest.
 

ShoutingIsLeadership

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Because that would cost more in the short term presumably.

As I understand it the reason this is necessary is to see broadband reach areas where the financial case for private investment to provide the service free of incentive doesn't exist. So the government has to plug the gap if the infrastructure required for this service is to be installed.

The only difference in ownership residing with the private sector at the end of the period is that the government has to provide less capital up front as bidders will factor the residual value of the asset into their bids. And with the government still having to watch the shillings it's very much a case of a bird in the hand...

I'd wonder if what is put in now will not be obsolete 25 years from now to be honest.

Would we agree to pay 80% of the cost of our house and give it to the bank in 25 years, or would we mortgage the 100% and keep it in 25 years?
 

DaveM

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Would we agree to pay 80% of the cost of our house and give it to the bank in 25 years, or would we mortgage the 100% and keep it in 25 years?
Your house will appreciate in value over that period. Telecoms infrastructure will not. I don't see how the analogy holds.
 

Notachipanoaktree

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Jul 26, 2013
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The Super Rich are going to make another killing off the backs of the Irish taxpayer.

The Cabinet decided this morning to use 'gap funding' to build the high speed broadband network around the country.

The government will invest up to €600million to build this network while will be given to private sector operators on a 25 year contract and these private operators will then retain full ownership of the network at the end of the 25 year contract.

Private sector to own telecoms infrastructure - RTÉ News
They just don't get it, the neo-libbers that is. Any Psychiatrist will tell you,if you keep doing the same thing or allowing the same thing to happen you cannot reasonably expect a different outcome.
 


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