24 Mar, 10
In person with Tommy McCabe, Director, Telecoms and Internet Federation, IBEC
Licensed Wireless News speaks with Tommy McCabe from IBEC's Telecoms and
Internet Federation on the challenges facing businesses as Ireland
emerges from the downturn.
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| Tommy McCabe: Director, Telecoms and Internet Federation, IBEC |
Q. Do you see Irish companies using broadband to make changes in their businesses? What applications are proving most helpful?
A. With the advance of technology, broadband speeds are increasing so that mobile broadband now offers between 2 and 7 Mbps on average, fixed line offers speeds on average up to 20 Mbps, and with fibre and licensed radio services that exceeds 100 Mbps. That means people can work remotely and download substantial files for work or research so that they're not place-dependent. Online trading and marketing, remote working and greater efficiencies are all being facilitated. And, as the cost comes down, I think videoconferencing will become a standard business tool. Everybody would agree that business is best conducted face-to-face, however it's not always cost effective or possible to travel, and there is also a drive particularly among multinationals to reduce the carbon footprint.
Q. Good videoconferencing is good, but bad videoconferencing is worse than nothing. Is there potential for businesses to be disillusioned with these services if they have a sub-optimal experience -- using perhaps a residential, contended product when what they really need is uncontended, symmetric broadband?
A. If businesses are using a product they are not happy with, I have no doubt they would contact their supplier and let them know right away. The competition in the broadband sector is such that it is relatively easy to switch suppliers. I think there's great knowledge about what telecom technologies can do, and it is highly unlikely that people are not improving their business because they don't know that there's better out there.
Q. What role do you see IBEC and TIF playing in supporting businesses to emerge from the downturn?
A. Since IBEC withdrew from the national agreement at the end of last year, employers are agreeing pay at a local level, and IBEC is assisting businesses with that process. Our IR/HR colleagues have found that their workload has increased massively because it's no longer a case of speaking with companies and clarifying their questions around the national agreement; now each company is asking for assistance in negotiating with their employees. But most employees are realistic about the downturn and recognise there needs to be an agreement with employers that enables the company to survive.
TIF's main agenda is to ensure there is a favourable environment for the telecoms sector to do business, to invest and to compete -- that itself should help enable businesses to emerge from the downturn, because telecoms is a key component of modern business.
We're in discussions with the operators and regulators and the government, and a key requirement is getting the balance of regulation right: if there is a heavy-handed regulation it might discourage investment, but if there is insufficient regulation we won't have competition.
Q. Do you think the downturn and the need for continued investment has benefited the position of commercial telcos in saying to the regulator, "Regulatory easing will incentivise us, to everybody's benefit?"
A. We would hope so. Our discussions aren't just with the regulator, but with the government that sets the policy within which the regulator operates. I think there is recognition among those stakeholders that we do need an environment that both entices investment and promotes competition, and that very heavy regulation will discourage investment.
We estimated three years ago that the level of telecoms investment by the private sector was €700 million per annum. That has fallen, but there is still a continued high level of investment. The private sector is saying to the government that we need certainty in terms of policy and regulation that will encourage us to continue to invest. This dialogue is ongoing at the moment. One important area is the new telecoms regulatory framework including the regulation of NGN – that hasn't come in yet, and dialog in relation to that is high on the TIF agenda for 2010.
Q. What is the most important objective for TIF in the coming year?
A. Given the downturn we would like to see continued investment in a competitive telecoms sector for Ireland Inc. I think there is a legacy of perception that Ireland is way behind in broadband, but we've made substantial progress. We need to communicate better to the general public that telecoms has made huge strides, and that a wide variety of the latest broadband technologies is now available. A few years ago the telecoms sector, I think justifiably, got a hard treatment in the media because we were significantly behind. We've subsequently caught up, but I don't know if the recognition is there. It's up to the industry to speak up, and with a united voice to say that telecoms service providers are offering the latest telecoms technologies at competitive prices.
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