High speed, high cost: the problematic procurement of Irelands National Broadband Plan

In December 2015 the Irish government launched the tendering process for a National Broadband Plan to deliver high-speed broadband to every premise in the country. The government opted for a 'gap funding commercial stimulus' PPP model for the delivery of the plan which was beset by various difficulties and delays. When the contract was finalised in December 2019, the estimated cost of government subsidy stood at over €2.2 billion compared to an initial estimate of €175 million when the plan was first announced in 2012. We utilise a transaction cost regulation (TCR) framework to provide explanations for the significant cost escalation observed during the protracted procurement period. The principal obstacles to the process were the opportunistic actions of the incumbent fixed-line operator, the complete absence of competition after the withdrawal of two bidders for the contract, and the political dynamics that surrounded the procurement process which saw the forced resignation of the Minister with responsibility for the plan.