ESB SEEKING PARTNER FOR FIBRE NETWORK - Vodafone and BT Ireland are vying to partner ESB in building a €400 million super-fast fibre network, reports The Irish Times, which will be strung across ESB poles and run directly into homes and businesses. It will be open for use by all internet providers in the market, and will provide serious competition in some areas for Eircom’s €1.5 billion fibre investment. ESB is seeking a partner to launch a new joint venture company to develop the network. The first phase of its development will connect 450,000 buildings in towns outside the main metropolitan areas such as Dublin and Cork. Sources said it would have broadband speeds of up to 150MB per second, making it the country’s most powerful network. Vodafone and BT are both understood to be interested. Bids are due in at the end of next month, and a decision will be made by the end of September, after which it is expected there will be several months of negotiations about the operation of the new company. Work will begin on the network in the first quarter of next year. Most fibre networks run to roadside cabinets, with copper wires used for the final stretch into buildings, slowing down speeds for customers. The ESB joint venture will run fibre directly into the walls of buildings alongside its electricity wires, a system known as fibre-to-the-building. Eircom’s fibre network, being developed to rival UPC’s new high-speed service, is a combination of roadside cabinet and FTTB technology.
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The largest private holder of Irish sovereign debt has claimed the Government's economic plan has worked, according to The Irish Independent. Michael Hasenstab, whose Templeton Global Bond Fund has heavily invested in Irish bonds, remained bullish on the Irish economy, claiming the State was "still doing a great job". And he signalled that the Government's policy of slashing spending and hiking taxes had been correct. "Ireland's still doing a great job. I mean, I think the extreme pessimism has now transitioned into some sort of comfort that the story is really working," he said, on a video posted on the website of US investment firm Franklin Templeton, of which he is vice president. Mr Hasenstab has bought more than €8bn of Irish Government IOUs on the international money markets, with reports that it could be closer to €10bn. And he did it initially when few others would touch them. He made the trade because he was convinced the Government would never default on its debts – and the gamble appears to have largely paid off. A glance at the breakdown of the Templeton Global Bond Fund shows that Mr Hasenstab has not only taken a punt on Ireland, but also on Poland and other eastern European nations.
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House prices in the eurozone have fallen to a seven-year-low, reports The Financial Times. ECB figures show that the steepest declines were in countries worst hit by the financial crises, where a large share of household wealth is stored in property. The figures also show a widening gap between euro countries – for example Spain has seen its property prices fall back to 2003 levels, while Germany has seen its prices hit a ten-year high. Ireland has performed worst, however, with prices falling to 2000 levels. Prices in the Netherlands, Italy and Cyprus are also down, while Austrian house prices saw the biggest gains, hitting a 12 year high.
