What’s the cost of cyber infrastructure?
Posted On July 26, 2021
Dublin has the world’s largest internet infrastructure.
It hosts the world and is home to the US and other major corporations.
But the cost to keep it running is not so high as some would have you believe.
The cost of running a network in Dublin is between €3bn and €4bn.
And the figure for Ireland’s broadband network is also a lot higher.
Dublin is a major hub for internet services, but the Irish Government is concerned that it will not be able to deliver its national broadband network when the country’s financial resources are stretched.
The Government has committed to investing an extra €1bn to provide a national broadband project by 2020.
But there are serious questions over whether it will be able afford the additional investment.
The country’s broadband infrastructure is already under threat from a range of threats, including the threat of an unprecedented cyber attack.
A study by consultancy firm CCS Insight, published earlier this year, found that the cost for building a broadband network in Ireland is estimated to be between €1.5bn and £1bn.
The cost of installing fibre optic cables to connect homes to the internet is estimated at €8,000.
That is roughly equivalent to a 10% increase in the cost per customer, according to the study.
It also found that building a network that connects every home in the country costs an average of €25,000 per kilometre, or an increase of nearly 40%.
The report said that even without the increase in investment in the national broadband programme, the cost could increase by up to 50% and the cost increases by around 30% per additional customer.
And that’s if the investment in a network is properly planned.CCS Insight estimated that if the Government’s plan to upgrade the copper network in the capital to a fibre network was not implemented, the number of homes that would need to be connected to the network would be greater than 5,000, with an increase in costs of up to €1,600 per household per year.
That’s around five times the cost incurred by building fibre cables to the main internet backbone in Ireland, according the report.
But it also found there are “very strong grounds for optimism” that the Government will be prepared to spend an extra £200m to support the national fibre network in 2019-20.
That would be a significant increase on the $50m planned for this year.
The report suggested that the extra investment in broadband could provide an additional $3bn of extra funding for the government.
It was not immediately clear what the Government plans to do about this.
A spokesperson for the Department of Communications said the Government had a “robust and sustainable fibre network” that will continue to provide the country with high-speed internet.
They added that the country was the fourth largest provider of fibre in the world, after Germany, Spain and Italy.
It said the investment is being made in a way that is compatible with Ireland’s existing infrastructure and would create “significant jobs and economic activity”.
It also said the plan is not only to provide “a more reliable, affordable and sustainable broadband network for Irish businesses, households and consumers”, but also to create jobs and generate tax revenue.