The National Broadband Network (NBN) will be most profitable to people currently without broadband or who do not have decent access, such as rural locations, small business and disadvantaged communities, because of the speed, software and broader connection with other areas of Australia. The fibre optic cable technology plays a significant role in the importance of the advancement towards broadband growth, as well as the affordability due to new competitive options available due to the break up of Telstra’s current hold on Australia’s telecommunications. First we will look at the estimated costs the NBN will incur for the government due to instalments of a new technology. Secondly, we will have a brief look into the technology of this new fibre optic cable network construction in comparison with current technology in place. Thirdly, outline the proposed possibilities of the oncoming of the NBN with a look into the software, Internet content and programs that will be available. Lastly, look on what minorities and sectors will benefit the most from this new technology.
After it’s initial release in 2010, the Government put together NBN Co to initiate the rollout and provide corporate information on the program. The confirmed “total capital expenditure for the project is estimated to be $35.9 billion, less than the government’s original $43 billion estimate. The government expects to contribute $27.5 billion in equity for the rollout.” (How much will the NBN cost to roll out? 2011). As well as the predicted budget of the cost of installing the network taken into consideration by the federal government, the National Broadband Network Companies Act (2011) has been put into place to ensure that the NBN remains in Commonwealth ownership for the duration of the construction and roll out of the network. Only when the system is fully functional and can meet productivity requirements, can the system be privatized.
Prior to the introduction of the fiber optic network, research was done on Australia’s current broadband, which put Australia as 17 out of 30 countries due to the “entry level [of] 256 kbps broadband per 100 inhabitants” (Given, J. 2008, Pp.6). The technological advancements behind the NBN involves installing the fibre optic cable into “93 per cent of Australian homes, schools and businesses, providing broadband speeds of up to a gigabits per second” (What is the NBN? 2011) and making wireless satellite for the areas that cannot be accessed by the fibre optic cable. The fibre optic cable consists of “fibre glass core covered by a glass casing that reflexes the light back to the core” (Fairhurst, G. 2001), allowing broadband information to travel at phenomenal speeds. The Government has initialized that any rural areas that do not get fibre optic cabling in their homes or businesses will get “fixed wireless services, delivering peak speeds of at least 12 Mbps, to premises in the 94-97 percentile.” (NBN Rollout: Statement of Expectations 2010). This is a substantial improvement to the overall broadband connection rating for all Australians as previously mentioned at 256kb/s.
As Czernich et al. (2011) suggests, the high-speed capabilities of the NBN on the infer-structure “may affect the innovative capacities of the economy through development of new products, processes and business models to promote growth” (Czernich et al. 2011, pp. 508), especially in the rural locations where connectivity is currently low. The speeds predicted by the new network will provide Australians with the option of Internet television, video telecommunications, ease of access in relation to financial advice and assistance, health care and a broader access for rural schools to advance all children at the same rate throughout the nation. The need for an advancement in our technology comes into light when looking onto Cunningham (2011)’s work stating that “More than 70% of the Digital Universe will be generated by users – individuals at home, at work, and on the go. That’s 880 billion gigabytes.” (Cunningham 2011, pp. 17) There will be no more delays in access to information and technology for rural areas or areas previously without proper connections for the Internet (like outer suburbs in city locations).
The elderly and rural indigenous Australians have been marked as the most disadvantaged to the current broadband system, as the “elderley,disabled, ill -who by virtue of low income may not be users of the newer technologies” (Stephens 2011) and therefore would find the competitive pricing of the new broadband to their advantage. The rural businesses would obtain a significant advantage from the new connectivity of the NBN in order to “remain competitive with their urban counterparts.” (Hill et al. 2011, pp.1088). The health system will also benefit greatly from the NBN. Because of the high speeds and broader connectivity from this network, doctors can keep in contact with rural patients, which will mean less long distant travelling for either the doctors or patients, and also the opportunity for all people to get prompt and reasonable health care due to the time saved with video-conferencing doctors appointments. (Madden et al. 200)
Despite the cost of putting the National Broadband Network together by 2020, it can be noted that the people that will profit most from this new technology are its users, especially in the rural and disadvantaged communities. Connecting all Australians with each other and the rest of the developing world means greater success for the market, health and growth of the nation as one society. The areas that are of the greater importance to this report is the emphasis on the network improving the lives of the broadband-disadvantaged, such as the elderly and rural locations, who either don’t have Internet, or have to go to expensive lengths to have the most simple of broadband, or possible dial up, connections. The key point of this essay is that this network isn’t just about having the best technology and advancing the nation through it’s Internet use, but about connecting all the people in Australia and making it possible for the disadvantaged minorities to push forward for their futures.
References:
Madden, G., Savage, S.J., Coble-Neal, G. and Bloxham, P. (2000), “Advanced communications policy and adoption in rural Western Australia”, Telecommunications Policy, Vol. 24 No. 4, pp. 291-304, viewed 19 October 2011, via Griffith University database.
How much will the NBN cost to roll out? 2011, viewed 5 October 2011, < http://www.nbn.gov.au/frequently-asked-questions/nbn-costs-and-pricing/how-much-will-the-national-broadband-network-cost-to-roll-out/>
National Broadband Network Companies Act 2011, viewed 10th October 2011, < http://www.comlaw.gov.au/Details/C2011A00022>
Hill, S. R., Burgan, B. and Troshani, I. 2011, ‘Understanding broadband adoption in rural Australia’, Industrial Management & Data Systems, vol. 111, No. 7, pp. 1087-1104, viewed 11th October 2011 via Griffith University database.
Given, J. 2008, ‘Australia’s Broadband: How big is the problem?’, Media International Australia, vol. 1, no. 127, pp. 6-10, viewed 10th October 2011, via Griffith University database.
What is the NBN? 2011, viewed 10 October 2011, < http://www.nbn.gov.au/about-the-nbn/what-is-the-nbn/>
Fairhurst, G. 2001, Fibre Optic Cable, viewed 19 October 2011, < http://www.erg.abdn.ac.uk/~gorry/eg3561/phy-pages/fibre.html>
NBN Rollout: Statement of Expectations 2010, viewed 16October 2011, < http://www.minister.dbcde.gov.au/media/media_releases/2010/121>
Czernich, N., Falck, O., Kretschmer, T. and Woessmann, L. 2011, ‘Broadband Infrastructure and Economic Growth’, The Economic Journal, vol. 121, no. 1, pp. 505-532, viewed 16October 2011, via the Griffith University database.
Cunningham, S. 2011, ‘Broadband, The NBN and Screen Futures’, Media International Australia, vol. 1, no. 140, pp. 16-21, viewed 14October 2011, via the Griffith University database.
Stephens, S. 2011, Submissions: Shelley Stephens, viewed 19 October 2011 < http://www.dbcde.gov.au/consultation_and_submissions/abc_sbs_review/_submissions/s/94>