merrion street

• Good morning Ladies and Gentlemen. I am delighted to be here in the Convention Centre this morning to address you at the fifth Digital Ireland Forum. I’d like to start by thanking Silicon Republic for inviting me here again.

• Government is committed to ensuring better connectivity, better public services, more citizen and community engagement, and creating a business environment that supports digital entrepreneurship.

• When I last addressed this Forum in March 2012, we were concluding the work of the Next Generation Broadband Taskforce. A year is a very long time indeed in the digital sector. This past year has been marked by several developments that are changing the game for digital in Ireland:

o In August we published a National Broadband Plan which set targets for fast connections nationwide and committed to Government investment of approximately €175m in next generation broadband to support the targets for less densely populated areas. I commend UPC and Telefonica Ireland, who are here today, and who, amongst others, worked closely with me to produce this Plan;

o In October, we switched off analogue TV services, allowing much needed spectrum to be freed up to provide advanced mobile telecommunications;

o In December, ComReg concluded an €855m auction to make that spectrum and other available to wireless operators;

o In January of this year, ComReg issued its decision on the Regulation of Next Generation Access, paving the way for new services to be rolled out.

New infrastructure and services are flowing fast from these initiatives and we are at a pivotal moment in the rollout of high speed broadband for Irish citizens and businesses:

o UPC has invested heavily in upgrading its cable network. Almost 700,000 homes passed by UPC already have access to 150Mbps broadband;

o Eircom has embarked on an ambitious rollout of fibre, and expect to have passed 1m premises by the end of 2013. It will launch its new fibre based product next month, making high speed services immediately available to quarter of a million premises;

o ESB is working on a project to use its network to rollout fibre services;

o Mobile operators are preparing for the launch of advanced 4G technologies, following the spectrum auction last year;

o New connectivity to the UK has come on stream with investments by the private and commercial semi-state sector;

o For those areas that are not viable for commercial companies, my Department has commenced work on a large-scale public procurement that will deliver speeds of 30Mbps. A team of consultants will shortly be appointed to assist in this process and the necessary mapping work will commence as soon as this appointment is made.

• The National Broadband Plan commits to ensuring that at least 30Mbps broadband is available across the whole of Ireland within the lifetime of this Government. We will do so, by supporting and encouraging commercial investment, and by investing State funds in areas which are not commercially viable.

• The Plan also recognised the role that the State can play in stimulating demand for high speed broadband services and committed to a National Digital Strategy. While the focus in 2012 was in getting the policy environment right for next generation broadband infrastructure, my top priority in 2013, is to foster greater digital engagement and use of the emerging infrastructure and services.

• The National Digital Strategy will be published in the coming weeks. Its purpose is not however merely to stimulate demand for demand’s sake. Our focus will be:

o To empower citizens by assisting them in realising the benefits of internet engagement.

o support traditional enterprises to realise the full opportunities of online transactions and trade;

o realise the full benefits of digital in the classroom, as we complete the rollout of 100Mbps to all second level schools in Ireland (we are two thirds of the way through that programme); and of particular note to the audience here today,

o we will provide continued support for Ireland’s digital enterprises and entrepreneurs; • Of course, this is only a fragment of what is possible for a truly digitally enabled society and the National Digital Strategy is only a first step in addressing some of our key challenges.

• Last December I appointed David Puttnam as our first national Digital Champion. David, another former guest at this forum, as many of you will know, is passionate about the possibilities of digital, particularly in the education sector. He is a strong and influential advocate for digital adoption. Working with the Department, he will be engaging with your sector over the coming months, with a view to challenging our assumptions and realising some key goals that will be set out in the National Digital Strategy.

• One of those goals, is to get more small Irish enterprises trading online. CSO statistics suggest that as few as 23% of SMEs are trading online. In contrast, Irish consumers are spending almost €4bn every year online. This is a real challenge for Irish businesses if they want to remain competitive. We want to turn this challenge into an opportunity.

• The 2013 Action Plan for Jobs signalled one of the key measures in the National Digital Strategy, which is to get some 2,000 small businesses trading online. We know that the digital sector has already been very active in this space. The number of companies and agencies that have worked with businesses to crack this nut are numerous. They include: Google, Blacknight, the Irish Internet Association, eircom, RaboDirect, the Irish Independent, Blueface, Irish domains.com, IEDR, the County and City Enterprise Boards and An Post. Most recently the Creative Dublin Alliance is focussed on an initiative aimed at getting Dublin Businesses online, working with Google, Facebook, Paypal, the Chambers of Commerce and Dublin City Council.

• Clearly there is scope for a powerful co-ordinated campaign in this area, utilising the combined skills and resources of industry and Government. Over the coming months, I intend to pilot a voucher scheme that will provide upfront funding for small businesses to help them develop an online trading platform. It is not all about money of course, and I will need the support of industry and promotional agencies if we are to succeed. To this end, I have asked David Puttnam to invite key industry stakeholders to a brainstorming session in which we consider how we can work together to help Irish businesses get online. Based on industry’s commitment to date, and with the prospect of financial support, I am confident that we can win-over a significant number of small enterprises and help them grow the value of their business.

• This initiative should be a win-win for traditional firms and for digital service providers. Many of you here today represent those small and large scale digital companies that are playing a major part in maintaining Ireland’s economic stability, and will play an increasingly important role in defining our future economic success. A report which my Department commissioned as part of the preparation of the National Digital Strategy will show the value of your sector to our economy, and underline its role in supporting growth and jobs.

• Globally, the size of the digital economy is $20 trillion. According to Ericsson and Intel, the number of global devices connected to the internet will increase from 5 billion in 2009 to 50 billion in 2020.

• The Digital Content and Technologies Sector in Ireland is thriving. It includes a strong cluster of smaller Irish and larger multinational companies that are focused on the development of both content and platform technologies.

• The Government, through Enterprise Ireland and IDA is focused on the development of a strong cluster of FDI and indigenous Digital Content and Technology companies. The scale and development of the Digital Economy in Ireland, and the technology capabilities in the research centres, are a key attractor for this fast growing digital companies.

• We have introduced a number of targeted supports including for indigenous and FDI companies in the digital space:

o The special Competitive Start fund provides investment of €50K for Digital companies. Companies securing funding through this scheme include a significant number working in digital content and technologies including Games companies.

o The iGAP (Internet Growth Accelerator Programme) programme, which assigns mentors to support individual company development and the development of networking activities. To date over 100 companies are participating in the iGAP programme.

o Recently the Government announced that 2,000 additional ICT graduates will be provided in the coming year as part of a drive to make Ireland the internet capital of Europe. 1,300 of these graduates will come from industry led programmes and 700 from work-employment permits in ICT.

o IDA and EI are funding Technology Centre research programmes in Data Analytics and Cloud Computing and the Government’s Research Prioritisation Action Plan specifically recognises the need for further research support in the digital area.

• We are continuing to support the Digital Hub Development Agency and the National Digital Research Centre from my own Department’s budget. Both provide valuable services for new and emerging digital enterprises. 156 start-up and FDI companies have located at the DHDA since 2003. Many of these have outgrown the space available at the Hub and gone on to notable success, with resulting job creation elsewhere - including Amazon, Havok, Houghton Miflin, Daft.ie and PopCap. There are currently some 800 people employed by the 66 enterprises in the Digital Hub.

• The decision by Government to transition the Digital Hub Development Agency to Dublin City Council, while preserving the necessary level of autonomy will allow the Council to use its considerable expertise to leverage the Digital Hub’s property portfolio for the benefit of new digital enterprises. It will also allow the Agency more scope to concentrate on supporting those digital enterprises, and on developing important local, Dublin and National initiatives aimed at promoting digital engagement across society.

• We are in no doubt as to the enormity of the opportunity and equally of the challenge of making Ireland a truly digital economy. As I said at the outset, digital touches every part of our lives. Promoting digital engagement therefore requires action across every strand of society.

• This imperative is echoed at EU level, through the Digital Agenda for Europe, which sets challenging targets for Member States across a range of digital areas.

• During Ireland’s Presidency of the Telecoms Council, we have already reached agreement on two important files – securing the mandate for Europe’s network and information security agency, ENISA, and legislation on the re-use of public sector information. We are also making good progress on the proposed eSignatures legislation, cyber security measures and web accessibility proposals.

• In June, the Commission will take its Digital Agenda Assembly out of Brussels for the first time, and hold the event in Dublin Castle. Many of you here present today I know have been assisting and supporting my Department in pulling together this prestigious event. It is one of the largest events of Ireland’s Presidency, attracting 600 delegates with almost twice that number expected to follow it online.

• The Assembly will be held in Dublin Castle and will provide an opportunity for Europe and Ireland to showcase best-in-class technology and services. It will also address key challenges. Workshops will be held covering important areas such as Smart Cities, Digital Skills, Cyber security, technology, public services, research and innovation, entrepreneurship and the Digital Single Market.

• These are issues which are important for Ireland and important for Europe. We recognise that that Digital is a 21st Century utility.

• The forthcoming National Digital Strategy cannot hope to capture all that is happening but will focus very strongly on the key areas I have already mentioned – digital entrepreneurship, business, education and the citizen. It represents an important first step in delivering the truly digital society.

• Your companies will continue to play a pivotal role in helping Ireland shape this more competitive, dynamic and inclusive society. I look forward to working with you in addressing these challenges.