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NBN and tech upgrades critical to Oz: report

By AAP on January 17th, 2012 
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And the federal government needs to actively encourage city businesses (that don't need to be physically close to the world - that is, near ports and airports) to move to country regional centres where the NBN had been installed.

This is the only way to reduce the excessive city infrastructure expenses (transport, roads, etc) by offloading non-city-dependent businesses (and many of their employees) to areas of lower infrastructure costs. These areas also have a lower cost of living, so people moving will lower their overall costs, reducing the wages push.

BUT, none of this can happen until these areas have business-viable upload speeds. In Daylesford recently, even on NextG (Optus is worse), download speeds were ~ 200kbps and uploads were unreliable, compared to our Parramatta speeds of ~ 7-8Mbps down and 10Mbps up on 4G LTE. We would NEVER consider moving with what some people in the country towns are putting up with.

The NBN plans will be < 1/10th what Telstra charges a business for a 20Mbps two way link. ADSLx is woefully inadequate for a SMB - our 4G LTE wireless link is far superior to what we can get in the city via ADSL2+ 2km out from an exchange.

A single person may be able to use a 12Mbps downlink (1/3 that for real speed), but an SMB of several employees needs several times that in both directions.

Someone in the federal government needs to spell out the overall infrastructure advantages (that is, not just communication) AND make practical incentives to encourage use of the new facilites.

PatanjaliPatanjali January 17th, 2012
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Great idea has real merritt BUT ! This has all been tried before with a myrid of business Go to any country town and look around at the empty factories and vacant industrial parks. It is very hard to expect workers to sell up an relocate to an inland country town and start again it will not happen.

GBEGBE January 17th, 2012
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GBE, very true to a degree, factories and industrial parks also need transportation to ship their products and raw materials, note Patanjali specified this. Past Labor governments have focussed on this, then the incoming Lib govt disassembles it all, must keep property values up in the capital cities and the business and industrial parks fully leased. It is a matter of critical mass in larger rural communities and we are becoming more of an information and knowledge economy away from primary production

Abel AdamskiAbel Adamski January 18th, 2012
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I'm surprised that a report from the Ai Group suggest that our government is not communicating effectively to businesses? Surely businesses don't need help from government to survive? Doesn't this go against the free market, which I'm sure the Ai Group support?

The reason only 30 per cent consider themselves informed and just over 50 per cent consider themselves prepared is because we have a real problem in this country with our business managers.

The fear campaign by the Coalition has effected their judgment to make appropriate business decisions, and this is worrying.

The problem is not a lack of information, it's a tsunami of mis-information on communication infrastructure. This report is a subtle way for the Ai Group to say to business, extract the digit, this is the digital age and your business will not run itself!

omegaomega January 18th, 2012
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Great to see this report released. THe NBN is a simply critical for future prosperity, particularly in the regions. Having recently assisted the Broken Hill Far West region with a Digital Economy Strategy (www.digitalfarwestnsw.com.au) I witnessed first hand how bad currnet infrastructure is in remote regions. The best speeds available in some parts of the town of Broknn HIll are literally at dial-up pace! There are companies trying to do business on the web and they have to send graphics for the website to their developer on CD via snail mail.
This report and others like it are crucial to start creating more debate and urgency around 1. installing the technology 2 developing the skills and processes to take advantage of it

FColeman Symphony3FColeman Symphony3 January 19th, 2012
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The NBN is an SMB enabler. Large enterprises can amortise their higher communications costs -- at cheaper rates than for SMBs due to volume -- over more employees.

I am glad that we are now getting posts from people that get this. Too many have been from city dwelling consumers who have no idea what costs an SMB deals with.

PatanjaliPatanjali January 19th, 2012
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