Australia’s future prosperity depends upon upgrading our networks for the high-speed broadband Gigabit Age.

High-speed broadband and the economy

There is a direct link between high-speed broadband and economic growth and productivity.

Many studies around the world have proved this link:

• The Federal Government-sponsored Broadband Advisory Group (BAG) report cited research estimating that next generation broadband could produce economic benefits of $12-30 billion a year to Australia.
• Allen Consulting has found that:
  • a state-wide network would boost the NSW economy by $1.4 billion a year and raise exports by AUD$400 million over the first decade of its use; and
  • a next-generation, ‘true’ broadband network (meaning >10Mbps) in South East Queensland would boost the state economy by approximately AUD$5 billion – and create 1,600 new jobs.
• The results of an ACIL Tasman study of the Victorian economy, when extrapolated nationally indicated that broadband would increase Australia’s economy by some 5% or over $50 billion.
• An Australian Industry Group (AiG) survey found that 73% of businesses reported that broadband connectivity had a positive impact on their productivity and efficiency.
• Around the world , studies have recognised that high-speed broadband will drive economic growth:
  • United States: Increase GDP by US$500 billion by 2010
  • United Kingdom: Increase GDP by GBP22 billion
  • Korea: Increase GDP by A$100 billion and create 370,000 jobs
  • New Zealand: Economic benefits of $2.7 to $4.4 billion a year
• A 2006 report for the US D epartment of Commerce found communities with broadband experienced higher employment growth; more rapid growth in business numbers and increased property values.
• The US Federal Reserve estimates that investments in new technologies account for some two-thirds of the acceleration in productivity in the US since 1995.
• A December 2007 study of 26 businesses in 15 industries using Telstra’s Next G™ wireless broadband network found on average a 9.3 per cent increase in productivity after an average of 7.5 months use.
  • Productivity gains among users interviewed varied from 1.1 per cent to 27.3 per cent.
  • 31 per cent of those surveyed were in rural or remote areas (and the highest gains were amongst those in remote areas).
  • The productivity drivers included reduced travel and expenses; better use of time while offsite or travelling; access to more information remotely; and reduced staff time supporting information requests from offsite workers.

High-speed broadband and business

High-speed broadband is critical to business, particularly small business and rural businesses.

• The ABS estimates that in 2005-06:
  • Over 80% of businesses used the internet and over 80% of these businesses used broadband.
  • $56 billion of internet income was generated by Australian businesses in 2005-06.
• One in seven businesses with one to four employees generate more than 50% of their income from the internet (double the percentage of larger businesses).
• The 2005-06 State of the Regions report found that rural businesses had significantly greater potential to increase their employment, economic output and exports with high-speed broadband.

High-speed broadband and teleworking

High-speed broadband provides greater employee flexibility and helping balance work and family responsibilities through teleworking.

• A 2005 Sensis Insights found 30 per cent of Australians who are employed or own their own busin ess telework to some extent.
• A study carried by the New Zealand Institute has found that teleworking from home would contribute NZ$610 million to NZ$810 million to the economy annually through reduced travel costs and absenteeism.
• A recent US survey of IT professional found that 76 percent of private-sector employers provide technical support for remote workers, while 14 percent of private-sector employees and 17 percent of Federal Government employees are telecommuting.
• There are an estimated 1.9 million sole traders in Australia, many of whom are based in the home and would benefit significantly from high-speed internet connections.
• A Telstra survey of 440 Next G™ wireless data card customers found that 67% of the customers used their data card to work away from the office during the January 2008 summer holiday period

High-speed broadband and healthcare

High-speed broadband will transform the health sector, massively increasing efficiency and improving patients’ health outcomes:

• Remote diagnosis by the best specialists regardless of location.
• Instantaneous recording and transmission by video of patient data.
• Remote interactive biometric monitoring o f the vital signs of the chronically ill while they stay at home.
• Voice activated access to medical notes during surgery.
• Medical results in minutes and hours rather than days (e.g. breast cancer screening, ear and eye disease in remote communities).
• Remote monitoring and reminders in relation to medications, reducing adverse drug events.
• Remote sensoring to alert relatives and authorities to acute events.
• Secure, remote access to patient records, anywhere, anytime.

High-speed broadband and the environment

A fibre NBN is good for the environment as it can held reduce greenhouse gas emissions:

• A 2007 study by climate change expert, Climate Risk, identified seven ways in which telecommunications can achieve a 5% reduction in Australia’s national emissions, while achieving $6.6 billion a year in cost savings for businesses and households.
  • By 2015, they could reduce Australia's greenhouse emissions by about 27 million carbon tonnes a year.
  • Many of these ways of reducing emissions are reliant upon high-speed broadband:
    • "In-person" high-definition videoconferencing;
    • Remotely managing power for appliances not in use;
    • Real-time freight allocation systems to fill empty vehicles;
    • Presence-detecting services that turn off devices that are "on" but not being used;
    • Using teleworking and working in regional centres to reduce commuter car traffic;
    • Integrated personalised “to-the-door” public transport systems; and
    • Increasing renewable energy use with networked demand-side management.