3rd Dec 2010. The Australian Government has allocated up to $43 billion for the provision of a national broadband network (NBN), providing Fibre to the Premises (FTTP) for 93% of Australian homes and businesses with minimum speeds of 100Mbps.
This report, written by Access Economics and comissioned by Macquarie Telecom is a survey of Australian businesses to advance our understanding of current business expectations for the NBN. Responses were received from 540 firms of all sizes across 17 industry groups.
Access Economics was engaged by Macquarie Telecom to interpret the survey results in conjunction with relevant research studies and four case studies of businesses that expect the NBN to drive significant change in their business model.
To maximise economic potential of the NBN, we need to be able to take maximum advantage of the possibilities generated by the NBN. So it is crucial that we understand the state of preparedness of businesses, and what needs to be done.
Change is expected to come via
■ enhanced online capabilities (55%);
■ new product and service offerings (50%);
■ more diverse ways of communicating with consumers and suppliers (67%); and
■ changed employment models, especially an increase in telecommuting (20%).
A number of overseas studies indicate scope for substantial gains, including:
■ Qiang (2009) found that a 10 percentage point increase in broadband penetration increases growth in GDP by 1.2 percentage points;
■ Crandall (2007) found that an increase of 0.01 broadband lines (i.e. connected premises) per capita in the US increased output of the non-farm private sector by 0.46%;
■ Katz (2009) reviewed the German national broadband strategy and found that it would lead to an increase in GDP of 170.9 billion Euros (a 0.6% increase in annual growth); and
■ Access Economics (2010) found that the NBN would result in NSW gross state product (GSP) being $1.8 billion higher in 2020 than would otherwise be the case.