The rollout of fibre to non-commercial viable premises will cost taxpayers £11,653,000 by the time Manx Telecom has finished the work.
Enterprise Minister Tim Johnston provided the update after a question from Onchan MHK Julie Edge.
Mr Johnston explained that the funding was provided to ensure premises in more rural parts of the island would be able to access high speed fibre broadband.
He said: “As with many broadband plans initiated by governments around the world, the National Broadband Plan adapted a gap funded mythology.
“This ensured that Manx telecom continued to invest in both commercial and non commercial areas, with government funding only being available to plug the gap upon agreed milestones being completed, ensuring that coverage is more universally available.”
He added that over 90% of the island’s population are now able to access high speed fibre, and this is expected to increase to 99% in 2025.
Who Benefits?
Ms Edge questioned this investment, asking whether this meant that taxpayers had invested millions in a private company for no return.
However, Mr Johnston said the money had not gone to the company, it had been used to fund MT carrying out a tender bid to carry out the government’s plan.
He said: “This is about the government recognising the need to put funding in to ensure that we have even an open access across the island in those areas that are non viable.
“This is not commercial areas, these are the areas that are non commercial, so this is government putting funding in to support that.
“It is not it is that it is not directly giving money to where you’re asking the question, to Manx Telecom, it is supporting that roll out of fibre broadband to make sure that all of the island is covered.
Not Everyone
Mr Johnston made reference in his answer to 300 homes that are still needed to be reached by fibre before MT receives its final payment for the tender.
Ms Edge asked where these homes are as many of her constituents in Onchan are still unable to access fibre despite it being reported that they can.
He said that as Onchan is a commercially viable area, it was not considered part of the rollout plan for which the government is paying.
The minister added: “I think it’s important to reiterate the point that that is the difference fibre broadband rollout in commercial areas is a commercial operation between the customer and Manx Telecom.
“This is the roll out in those parts of the island that are difficult and non viable for Manx Telecom to support, and that is where the government is funding that gap.”
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