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Viewing report
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Australia - National Broadband Network - Ready for 2011
Paul Budde Communication Pty Ltd, Jan 2011, Pages: 6
Telecom Investment Research NoteThe 2010 federal government election was a cliff-hanger but it was evident that the majority of Australians supported the National Broadband Network (NBN), with surveys indicating over 70% voter support. Access Economics Research showed a similar result for business demand. It is now full steam ahead for the NBN, but there will be significant pressure in two areas: NBN Co will have to roll out quickly, and the minister who has been placed in charge must ensure that most, if not all, of the 30+ rollout projects have trans-sector pilots attached to them, so as to warrant government investment. Initiatives were taken along these lines in late 2010.
The key to the success of the NBN is not ‘superfast Internet connectivity’ but ‘economic reform’ and therefore the political capability to get it off the ground is at least as important as technical capacity. While NBN Co is more than able to cover the technical capacity there is currently no strategic system in place to also address the broader economic reforms.
A good start has been the extension of the minister’s portfolio to now also include the responsibility for ‘Digital Productivity’.
A business plan, including proper financial information, was made available by NBN Co. There will be a focus on regional rollouts and regional application pilots. Under the NBN these projects are up-scalable and this in itself will attract a great deal of business investment of the kind already being entered into by Telstra, Optus, NEC and some of the mid-sized telcos.
There is widespread attention from overseas investors and international business people are already investigating the business opportunities that the Australian National Broadband Network market is offering them. The question is: are Australian businesses also up to this challenge? Will Australian organisations be able to take the lead and establish a new digital media industry that they can use as a platform to expand their businesses overseas?
As an important part of this the Australian diplomatic service and Austrade will have to increase their efforts to lift Australia’s information and communications technology profile on the international market.
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