Tech sector reacts to new Cabinet
29-06-2007
by Emmet Ryan

There are interesting times ahead for the technology industry following the formation of the new Government.

Perhaps the most notable change was the arrival of Eamon Ryan in cabinet as Minister for Communications, Energy and Natural Resources. The TD for Dublin South, famed for riding his bicycle to Leinster House, was one of two Greens appointed to the new cabinet alongside John Gormley.

Despite his lack of experience in government the industry has by and large welcomed Ryan with open arms. "We welcome his appointment and look forward to giving him our full support in his new role," said Eircom spokesman Paul Bradley.

Eircom's view was echoed by Tommy McCabe, director of the Telecoms and Internet Federation. "We have been very impressed by him both as the Green Party spokesman for communications and also through his active participation in the Oireachtas Committee for Communications," said McCabe.

"He is very intelligent and articulate, and has a good understanding of the telecom issues. I have found him personally to be very courteous and sincere and he is in my view a person one can do business with," he said.

Consumer activists shared the view of industry leaders that Ryan's arrival to cabinet was a positive step. "I think it's a very good move," said Damien Mulley, who was chairman of broadband lobby group Ireland Offline until it recently disbanded.

He said Ryan's background as spokesman for the Green Party on communications prior to the election and the party's policy on the sector could result in a better deal for consumers. Mulley said he hoped Ryan would drive competition and make ComReg take a stronger stand on behalf of consumers.

"I would like to see more competition," he said. "I would also like to see a stronger attempt by the Minister to make ComReg take its consumer responsibility more seriously."

Mulley called on Ryan to hand down ministerial directives to the regulator. "Dermot Ahern did so to make ComReg cop on, we need to make them more transparent and follow a model similar to the Financial Regulator or Ofcom [the UK communications regulator]," he said.

Ryan takes over the role from Noel Dempsey. "In a perfect world we would have liked to see some continuity," said Michael Molloy, chief operating officer with BT Ireland. "Minister Dempsey was only there for two years but in that time he made a difference."

Despite lamenting the loss of Dempsey, Molloy is confident Ryan can ably steer the department. "From my understanding of his philosophy it should continue down the right path," he said. "He's pro-competition and should continue the work Noel Dempsey started," said Molloy.

Ryan's arrival in cabinet comes as the telecoms sector is facing up to new forms of competition. "It's certainly an interesting time that he's coming in. There's coalescence with the next generation networks debate," said Molloy.

Next generation networks will see the convergence of fixed line, mobile and media functions with operators from each section crossing over into new territory.

"It brings challenges to business models," said Molloy. "His [Ryan's] work will be to make sure Ireland doesn't get left behind."

Broadband is an area where significant portions of the Irish population have, to date, been left behind with little to no coverage. Bearing this in mind Mulley called on Ryan to ensure these groups were looked after in the next national broadband tender.

"It will be interesting to see what gets changed," he said. "A lot of areas that wireless companies say they have covered, including large parts of Donegal and Wexford, have no broadband access."

While both consumer groups and industry leaders are confident Ryan is the right man to meet these challenges there was still an air of disappointment about how the wider technology industry fared in the cabinet shake up.

"We really welcome the appointment of Eamon Ryan but we were a bit disappointed that in the junior ministries there were none with a specific technology portfolio," said Neil Leyden, chairman of the Digital Media Forum.

"Michael Ahern has innovation, which you could argue could be there. It is unclear if Tom Kitt, who was regarded as an e-minister, will continue in that role," said Leyden.

He said the important role that technology plays in the economy meant it deserved greater representation at government level. "There are very old industries being looked after. To me that's going in the wrong direction as the Government needs to be looking forward," said Leyden.

Despite his disappointment with the lack of additional ministries he said there were reasons to have a positive view on the incoming government's attitude towards technology.

"Micheal Martin has been doing a great job in Enterprise, Trade and Employment," said Leyden.

"The Government has seen the importance of the knowledge economy and has invested in research," he said. "We now need to see money put into the commercialisation of that research."

Whether or not the new cabinet can live up to industry expectations remains to be seen.