Australian Chamber of Commerce and Industry backs National Broadband Network

However Labor must supply hard numbers on the cost and benefits of the NBN, ACCI says

The National Broadband Network (NBN) has been given strong endorsement by the Australian Chamber of Commerce and Industry (ACCI) which at the same time has called for hard data from Labor on the economic benefits of the infrastructure project.

Speaking on Network Ten on Sunday, ACCI chief executive, Peter Anderson, said the Australian business community realised the benefits to the economy which national broadband infrastructure initiatives could bring.

"The instinct in the business community is that there can be a real productivity kick and benefit," Anderson said appearing on Meet The Press.

Despite the endorsement, Anderson warned that Labor would have to work harder to address concerns within the business community that the project's cost could be covered by future economic benefit.

"There is also a hard headed approach .... which say that we need to ascertain whether the productivity benefits and economic benefits are likely to offset the costs because the costs are very substantial," he said.

Anderson stopped short of calling for the release of a full cost-benefit analysis, but argued Labor needed be more open on its NBN costing details.

"There needs to be, I think, more transparency in what those costs are, but I think business does recognise that in the short term at least there will be some cost which are not able to be returned in a direct way," he said.

"There will also need to be some subsidisation into regional Australia, that's recognised with major infrastructure like this, but we don't want to sign a blank cheque off if we are going to roll out major infrastructure like this.

"There does need to be hard headed economic approach to these kind of decisions even though the instinct in the business community is that there can be a real productivity kick and benefit with getting on with the job."

The comments are likely to be a mixed blessing for new Opposition communications minister, Malcolm Turnbull, who may jump on the ACCI's comments to further pressure Labor to release a cost-benefit analysis for its NBN.

On taking up the portfolio Turnbull wasted no time in drawing a link with the cost of the NBN and Labor's deal with independent MPs Rob Oakeshott and Tony Windsor to prioritise the NBN's rollout in rural and regional Australia.

“That’s no doubt beneficial for internet users in whichever rural regions Labor plans to favour first, but bad news for consumers in other under-served areas such as the outer suburbs,” Turnbull said. “The switch will also greatly increase the total amount of capital the Government needs to commit to the NBN."

At the same time, communication minister, Senator Stephen Conroy, will likely use the ACCI's comments as proof that the business community understands the need to lift Australia's productivity, a point Treasurer, Wayne Swan, drove home last week.

"High-speed broadband is absolutely vital to turbo-charging our national economic success by securing long-term productivity growth and boosting our international competitiveness," Swan said in a speech to the Global Access Partners Economic Summit in Sydney.

"We simply wouldn't have been able to compete in years to come without super fast broadband. To do nothing at this point would have been the same as sending our jobs of the future overseas."

More about: CCI, etwork, Network Ten
References show all

Comments

1

James

Sun 19/09/2010 - 10:45

I find it hard to believe and understand that Peter Anderson can endorse the NBN without a cost benefit analysis; try pulling this stunt in the corporate world. Anyone who thinks the NBN will change the world needs to wake up because it wont, and hasn`t; just ask the corporte world who already have it. With the rollout now to start in rural areas this will just make it that much harder to justify. Rural residents will need to spend up big to have the fiber brought to their homes

2

Ken

Sun 19/09/2010 - 10:55

Would someone please explain to me why we need to do this. I really don't understand why it is so important. I have heard that because 70% of internet use is to overseas sites, that this network will be of little use. Is this true ?

3

dalma

Sun 19/09/2010 - 10:58

The ACCI have not fully endorsed NBN - read the communique. They are much against writing a blank cheque, and the proposed $43 B will at the end of the Day cost us $86 B all up, and take 20 years.\. There has never been a Govt sponsored program that has not escalated in leaps and bounds, simply because they haven't the expertise to manage such a mammoth enterprise. The Snowy Mountain Project cost Aust 3 times it's original estimates.Telstra haven't the staff - Engineers, cable layers,excavators, crews etc to lay out the firbre-optics, and it will take years and many pay rises to get the crew they ultimately seek. We are a huge Continent - only the Capital cities will be targeted. If you live in Kakadu - forget it. If you live in Kalgoolie or Lighten Ridge, McQuarie Fields etc, it will take another half a century, if ever. By then, we might stick to the faithful carrier-pigeon. At least it's dependable.

4

RS

Sun 19/09/2010 - 11:11

@3 unfortunately your comment lost all credibilty once you plucked the figures of $86B and 20 years from absolutely nowhere...

5

Bruce

Sun 19/09/2010 - 12:07

My heavens what a lot of experts have come out of the wood work.

Uncle Tony says" We will destroy the NBN", so all the "boat people experts" suddenly switch to broadband.

How do these people think cable is laid for normal phone lines?
The infrastructure is already in place to achieve this, and folks, there are/will be more than a couple back hoes and cable gangs doing the work.
The NBN will recover its investment many times over and form the structural base for all the other emerging technologies to be implemented.
These emerging technologies are only just that and will not form the answer to our needs for many years and represent an unknown.
We can not risk the loss of business efficacy and relative loss in productivity with the rest of the world for 6 months let alone 6 years.
Get real guys!

6

Stephen

Sun 19/09/2010 - 12:10

I can't believe why we are begging for the full benefit analysis. It is our money, yet Labor makes us feel we are not entitled to know what the pros and cons are. It is a joke. And it just goes on and on. Labor knows there are calls for the analysis but thinks it can ride it out. Those in favour of the NBN have the courage to call for a proper independent analysis, then I will respect your point of view, favourable or not. At the moment I see the NBN supporters as young children willing to do anything with other people's money for a new toy. The supporters should respect my hard earned money.

7

Stephen

Sun 19/09/2010 - 12:17

Bruce, you say the investment will be a great benefit. That is it. That is what you say! Who are you? Your opinion doesn't make it so. You then say..Oh the doubters must be stupid. But Bruce we are not stupid. We run our own businesses or lives and we do quite well thank you. We don't have other "experts" telling us how to spend our money. You saying it is so, doesn't make it so, in the same way and me saying it won't. Lets have the proper independent analysis. The reason you don't want it is because you are frightened we may be right, and it looks like a disaster and you don't get ther NBN. Go on change sides, call for the analysis.

8

Bruce

Sun 19/09/2010 - 12:36

@7 Sorry to rain on your parade Stephen but nobody is calling anybody stupid - ideologically conflicted yes- but not stupid.

I welcome for one a complete analysis of cost benefit but I decry the unadulterated party political BS that gets run up the flag as comment.

Stephen I am not sure you have the mandate to use the "royal we" as I too am in business and have lived for quite a few years O/S (6 years ago) where all that we rabbit on about at the moment had been achieved years before. Thats how far we are behind! Lets get busy!

9

Stephen

Sun 19/09/2010 - 12:45

Bruce, good to see that you support a cost benefit analysis. Could you put that sentence at the front of future comments and any other supporters reading these articles or comments, also call for the costs benefit analysis as their opening comments. Then the fence sitters will have more confidence in supporting what may be possible. Then the next mental hurdle for the NBN supporters, is what if Abbott is right and really good Broadband can be achieved at a fraction of the cost and the rest spent on Hospitals etc. Before you close your mind, note the premise..really good Broadband. Are you still locked into the NBN. I would expect so. You want others to be reasonable but not yourself.

10

Luke

Sun 19/09/2010 - 12:46

The problem with doing a full blown CBA is that it will inevitably be hugely speculative and cost a heap more money. It will also cause delays to the roll-out of the NBN which in itself will make the project cost more money. Transparency is very important although the lack of it is at least partially understandable given how fast this project is moving along.

Unless you want to be a huge cynic and say that Labor has something to hide, I don't think anyone would disagree with a CBA if it was instantaneous and free. Call ME a cynic though because even if we could do that and the report came back saying it would return 43bill by 2015, run 5bill under budget and finish in 7 years instead of 8.... the Libs would still find a reason to block it.

11

RS

Sun 19/09/2010 - 12:56

Funny how all these NBN nay-sayers all sound the same and sing the same hollow, all that matters is $, tune.

A cynic would suggest these are simply 1 or 2 people posting the same BS, under many different names as we seem to have had an influx of likeminded, anti-NBN n00bs here of late!

12

s

Sun 19/09/2010 - 13:00

Luke, you sound like normally a smart guy. But you are like our son who is blinded by all things that don't allow him to spend time on the computer. You have a conscience and you want to sound reasonable and understanding of the cynics. You say we could be hugely cynical and say Labor has something to hide. Mate that is not hugely cynical. It is a fact. You are conflicted by wanting to be fair but the thought of missing your precious is too much to bear. Well you would be pretty typical of the younger generation, you have the vote so somehow us who have been around longer have to deal with you. Please recognise that it will take a great deal of effort for you to come back to the centre. You think you are in the centre, but you are still well at the extremity of the NBN diehards.

13

Stephen

Sun 19/09/2010 - 13:03

Ohh, I can see that RS is our resident intellectual.

14

Bruce

Sun 19/09/2010 - 13:09

Stephen Please read my first comment. OF based NBN is essential to make all of the interesting but unproven technologies work for us and will potentially reduce the final cost of the network.

One cost benefit that we do not need an analysis for is that if the network is under national jurisdiction then it will not be cost hijacked like the current ADSL and ISDN has been, which has added considerably to the cost of doing business in this country. Allowing vested interest to manage this process could be likened to the mess we find our selves in with the Murray Darling Basin, everybody in for their slice but screw the country.

Take the opportunity to research the the cost of high speed internet in other countries and compare it to our own.There you will see an immediate cost benefit to the nations business (think of your own expenses multiplied 1000's of times over, not to mention the lower individual implementation cost (compared to wireless infrastructure) and the immense productivity gains truely HSBB will give.

I think you will be surprised.

The first N in NBN stands for national interest and not vested interest.

15

Stephen

Sun 19/09/2010 - 13:21

Bruce, so thats a yes, you are locked into the NBN no matter what the cost. That is where you lose the fence sitters. The fence sitters have seen where a cult mentality leads. You are a member of a cult. You are in denial. I really appreciate the opportunity to discuss these issues in a direct manner, and I appreciate you letting me know in plain definite terms. You are committed to the NBN no matter what. There are no circumstances in which you would question your decision. Anyone who questions the decision will in some way be shouted down. Defining your position as a cult is probably right. You are like the Taliban or other fundamentalists.

16

Luke

Sun 19/09/2010 - 13:25

I very unashamedly support the NBN because its a good policy. My youth and CS background undoubtedly classify me into some group who largely support the NBN but that doesn't make my views less valid. It probably makes my views more valid considering I had to understand how the tech works to get my degree and have been talking about broadband policy with my "ignorant youth" friends since 2005.

On topic, the latest senate enquiry into the NBN reviled that the vast majority of the industry supported the NBN. All the evidence suggested that the project was running under budget and on time. In that report the Liberal senator Ian Macdonald said:

"The government claims benefits will flow from its NBN, but those benefits have not been articulated in sufficient detail. Nor have they been pitted against the benefits that would flow from implementing an alternative model for delivering broadband services to Australians."

What alternative model? Wireless? Surely not! I think we know very well what the Liberal Party want. They want to let the private sector sort it out. Remember the last time the Liberal Party did a Laissez-faire experiment on comms? They let Telstra hold our country to ransom under that crazy Mexican dude who thought we were racist. No, we don't want that again.

17

Soon Please

Sun 19/09/2010 - 13:50

@4, the NBN is a very good thing. As a nation, we should build it. We must build it. Even if it costs much more than $43Bn.

However, the rollout is in real trouble. The target was 10 million premises over 8 years, but with 10% of the schedule gone less than 0.01% of those premises are connected.

While the $37 NBN Tasmania number is waved around a lot, actually $662M has gone to the NBN - most to the non-Tasmanian portion which has yet to connect a single subscriber.

Overall it has cost nearly $2M per paying subscriber connected. The money clearly isn't being spent effectively. pointless pontification and long-lunch meetings in Melbourne is my guess.

A review of the managment of the NBN is deperately needed if this project is going to go anywhere. At the moment it looks like the country will fork out the money but not get the network.

18

Gav

Sun 19/09/2010 - 13:54

For the guy claiming 70% of sites international, etc, we have enough transit for everyone to average well over 100Mbit/s.

I did the path, we have over 20Tbit/s of international connectivity, we will have no issues.

If you are happy with your current connection, the network is NOT BEING BUILT FOR YOU! It's being built for all the people who are not happy with their connection, many of which are unable to use the internet to it's potential because of it.

It is also being built for business, a NBN connection you can get for $50 costs $3,000+ currently, only massive corporations can afford it.

19

Visionary

Sun 19/09/2010 - 14:02

@19, I agree connectivity both domestic (NBN) and International (lots of cables under the sea) will not be the constraint. The Servers and personal computers, poorly written applications will be the next bottleneck. This is where the focus should swing.

20

Luke

Sun 19/09/2010 - 14:16

@Stephen
The truth of the matter is that the privatisation of Telstra is what caused this mess and the current Liberal policy is from the same right-wing economic bag. Read up on it if you want, letting supply and demand solve our issues is their entire argument.

As for alternative technologies there really aren't any that do a better job than FTTH. That's a simple fact. In the long term wireless will be more expensive to implement and will give us poorer results. FTTN won't remove the biggest bottleneck in the system, the last mile. If we stay on ADSL2 we will have to put up with the same speeds we have now.

You can bring up anti-communist examples as much as you want however its fairly obvious that the free market won't deliver as good a system as the NBN. The benefits of the NBN are too big for a single private company to see. No company is EVER going to stand up and roll fibre to rural areas because to the company itself the benefits are small. To the economy as a whole however.....

21

RS

Sun 19/09/2010 - 14:25

@13 wow Stephen, what an intelligent comment [sic] from an obviously intelligent specimen [sic]...!

Reading yor incoherent rubbish, is most humorous...!

Ooh and remember who made it "personal" first...!

22

Stephen

Sun 19/09/2010 - 14:39

Luke, I am willing to concede that NBN will be the best network. I can see that. I can see the arguments, about the railways, the 21st C, the development of regional Australia etc. You think that the tech heads know all of this and we don't. What you are not recognising is as an example, say it ends up costing $200B it won't be built its entirety. It will be obvious at some stage that to complete it, it will bankrupt the nation. Those that have it then are happy, those that don't won't. If nothing else, for the rest of your life watch how this comes down with Labor. For us who has seen it before, the real cost with this govt may well be $200B. The mining tax, a carbon tax and anything else it can tax will be to pay for this. All that the cynics are saying, is, lets to a cost benefit analysis. And no, doing a CBA is not too difficult. If it is, then doing the NBN shouldn't be attempted, ie training wheels on the tricycle argument. If its private money, then it doesn't hurt the broader economy when it stops. Do you really believe that the whole country will be connected? Labor is a disaster, it will fall over. You are better with the certainty of the Liberals that it will deliver a lesser product but it will be delivered, and there won't be a quarter finished elephant with a huge public price tag. Labor will then sell the elephant to the private sector to get some money for peanuts. So the govt has built the private sector an improvement on public money. Luke, these are the things the younger generation doesn't see.

23

Stephen

Sun 19/09/2010 - 14:52

Luke, If Rudd had his way with the ETS and Copenhagen had pushed through the Third world agenda, there would have been a budget item in our budget of $6B to pay criminal gangs in Africa, compensation for fraudulent certificates about their farming practices. Yes, last budget $6B. Your wonderful Labor party. Abbott has saved us $6B this year and the next and the next, just by rolling Malcolm Turnbull. Labor supporters now have the Greens around their neck trying to revisit the issue. Mate the younger crowd has got to get hip. I had fire in the eyes when I was young, and I didn't appreciate my parents leaving me a debt with unfounded Commonwealth and State Super. The younger generation has got to start calling for their parents not to pass them a huge debt. Not much going on in the eyes of the young these days, too many days sitting in front of a computer eating junk food. There is a new species being borne..just say nice things to me and rub my tummy.

24

Visionary

Sun 19/09/2010 - 14:58

The horse is dead, lets stop the beating. @23 i agree, those in the younger generation cannot or do not want to listen. That is the cycle of life. However, it is those who have a few bit of grey hair are the people who designed the current technologies. Fibre is old hat it has been around for decades. But the decision has been made, NBN is coming to a house near you. Lets make the best of it and think about what applications can be designed to make most of this resource. That is the challenge for the younger generations.

25

Donna

Sun 19/09/2010 - 15:03

@22 RS - it looks like you were incorrect about almost everything.. You look like a complete fool.
Today we read the ACCC ruling the NBN under labor is unviable. (RS go read the findings and try to make some intelligent comment in response if you can).
The $11b Telstra deal has to come off the table and there is yet another example of Conroy and Quigely's ineptness in handling our money or the public's interest.
People like you RS are the reason why this waste and ineptness exists. Complete fools we have to pay for and carry. Perhaps NBN access design should include a speed based on value and contribution and a filter for IQ.
RS would be on dialup, if he ever go thru the IQ filter.

26

RS

Sun 19/09/2010 - 15:25

OMG "Donna", I do not know you and have never corresponded with you, but yet you mention me...I wonder what brought that on...? LOL!!!

As such, it is obvious that my comment relating to "previously out-debated and fact less, childish posters", who I have embarrassed, who just can't let it go, is 100% correct...

Donna you look like, sound like and smell like another big-mouted empty headed moron, good thing we didn't step in you...!

LOL at the desperation of you idiot Liberal/NBN nay-sayers.!!!!!!!!!!!!!!!!!!

Time to grow up, fool... (woops fools...LOL)!

27

harry lidcombe

Sun 19/09/2010 - 15:32

Hi been reading this. This @RS guy is at least 5 different people on these forums supporting the NBN. The giveaway is the same old phrases and cliches in sticking up for it.
RS personal style is never based on any facts and quickly shifts to negative and personal rudeness as we see here.
=>Is the NBN paying people like RS to provide these comments ? (probably through an agency i am guessing)Another waste of our taxes no doubt.
For the geniune comments, the NBN is clearly off the rails and needs a halt and public enquiry regardless of what side of politics you are on. It doesnt matter if its 4b or 48b, the evidence is it is out of control, has no plan and the public have lost confidence in it.

28

Tim Lohman

Sun 19/09/2010 - 16:14

Hi guys,

Good to see the story has gotten the debate flowing again, but a bit more "play the ball and not the man" in the posts probably wouldn't go astray.

Great to see the passion, but why not use the posts, and the Computerworld Forums, as an opportunity to really kick around the issues, the policies and the technologies and not our fellow posters? ;)

29

Janey

Sun 19/09/2010 - 17:15

The NBN will be another iconic labor party reform. And if it costs more so be it.

30

RS

Sun 19/09/2010 - 18:08

@30... thanks Tim.

Unfortunately, there are one or two shattered children masquerading as many (just check their IP addresses, LOL), who simply are unable to admit that they have been wrong all along and unable to also accept electoral and NBN defeat.

As such, with nowhere left to turn, all they can do is keep rekindling the personal unpleasantness, under different names, OMG...!

But thats' ok, I can take it and I especially love to respond, sans gloves!

Keep up the great articles!

31

Soon Please

Sun 19/09/2010 - 19:18

Clearly RS only ever plays the man, and never the ball...

32

RS

Sun 19/09/2010 - 19:50

LOL... see!

33

Visionary

Sun 19/09/2010 - 20:39

The debate needs to move on. The NBN is to be installed like it or not. I would like to read about innovation and creative ideas to use this resource. This is a technical forum, not the high level stuff. I would like to hear from our younger folks who will be the users of this network.

34

cos

Mon 20/09/2010 - 01:31

Labor is a disaster, it will fall over...

therein your failure to be objecetive is clear.

basically the libs want the nbn to be destroyed - they have said as much. you can hardly expect them to give the nbn a fair go, and approach any c/b analysis with an honest intent to discern if project is worth supporting - we know they will oppose it.

as for james - no, you cant 'pull this' without a c/banalysis in the corporate world. but this is not the corporate world we are talking about. it is the government and it is the provision of essential 21st c infrastructure.

what will be the result if there is a conventional c/b analysis? in the pro column, there will be the many potentialities for growth and diversity in broadband apps., and some analysis on what will be needed for australian firms to be globally competitive in the future - in many cases a couple of decades away. but these will undoubtedly be dismissed in their entirety as 'speculation' by the libs and other nbn knockers - despite the fact that some degree of growth/diversification in the use of this infrastructure is a virtual certainty.

and there will also be some social benifits, some of them also some way away. these cant be measured in $ terms alone. similarly relational or flow on effects - such as the network altering mitigating stresses on transport and other forms of infrastructure, the further effect of these factors on productivity / well being etc. but knockers will dismiss these latter relational issues as ancilliary/speculative, and in the case of 'social benifits' merely compare them mechanically against spending on other infrastructure which, in a less efficient way, may deliver similar outcomes/address similar problems.

and finally there will be the cost - which is substantial and in the here and now. this is what will be focused on by the knockers, and it will be compared with the most immediate, myopic definition of what returns from broadband sales etc will be achieved.

so for mine, NO c-b analysis of the conventional corporate kind (ie, short term, myopic and bottom line focused) should be performed, as it will be a free kick for sabeteurs/knockers. what instead is needed is a broader report that explains the areas where growth could occur correlated, wherever possibly, with overseas and ongoing developments in the sector. potential direct and 'relational' (flow on) social infrastructure functions and outcomes should be discussed, and weighed against the cost without a strict to-the-dollar analysis (which again can only be an estimate - and thus dismissed as 'speculation'). finally, the NBN layout should be compared to the cost of maintaining our decaying copper network - both the increasingly expensive costs of replacement and the potential loss in terms of business performance and competitiveness.

35

Jason

Mon 20/09/2010 - 01:50

@2 - When Australia connects to overseas, the internet speed becomes slower. Also you stated that 70% of internet use is to overseas sites and that's quite a majority. This NBN network is therefore not of little use.

@3 - Good point. Let me say the same things (facts) but from an opposite viewpoint. Liberals are just tax tax tax and that's what feeds their salary pockets and not the rest of the economy during their 12 year reign. Labor invests and all you can say is waste and white elephants. $4 billion a year on the NBN is where your $86 billion over 20 years are coming to (if it does go on for 20 years instead of 10).

@6 - First thing people think about broadband benefits. They base it on their homes. They forget about businesses who have to download much more and especially with overseas. You should note that wireless unlike fibre has a capacity problem.

@12 - Yeah and so does most politicians. From adding to the Labor list put in the Liberals. Yeah you got the majority now as hiders. One thing about Liberals is that they can criticize but they cannot come up with ideas or better alternatives.

@23 - I'm 20 years old. You speak of Labor selling off the white elephant but then again you should remember who sold off Telstra.

@26 - Conroy did state that the filter will have to go through a consensus. Donna, you very well know that the majority of Australia don't like the filter. Secondly, the house is no longer dominated by Labor. So here's a fact, that won't be passed along to the NBN.

@28 - Harry, very strong words and views there. The NBN is undergoing a trial for that reason and it succeeded in Tasmania. The NBN was announced in 2007 and trialled this year and to me that's a damn long delay so halting would be a jerk. If it's further halted then your government is just all talk and that's called doing nothing and then the public will definitely lose confidence. I don't think it has no plan. The money's going somewhere (to those engineers, contractors) as government investment and it'll eventually come around the economy in all industry sectors in due time. You might hang around with NBN naysayers and call them the public but I hang around with people who wants it (and definitely not the filter).

36

Froghast

Mon 20/09/2010 - 02:43

$43 Bn equates to about $2 150 per every single Australian.

More than $10 000 dollars for my small household. For most households, what significant benefit are we going to receive for that? Will this cost ultimately be borne as a tax to me?

Will my parents' tax payment of $2 150 each be realised by my families' faster usage benefit ? This, flow on benefit , as they don't have a PC, and don't want or plan the internet . Ever. Why then should they be expected to pay, for my excess? Or yours?

I only ever pay my bills, scrutinise the weather, do the occasional school assignment, and do some university research, and the odd insomnia inspired surf to sites like this.

If I received this at twice as fast, or even ten times as fast, would it matter?

With that bandwidth I could watch Oprah on my PC? Woo hoo! But would I want to?

Isn't it largely the porn industry that demands most of Australia's bandwidth, today? Would a wiggled dildo not look pretty much the same at ten times the resolution? Is Porn in a flash - the national need? How much hertz does fellatio truly need?

What industrial or commercial benefit will likely arise?

Or is it simply technology, for the sake of technology? Technology that simply 'looks cool' , like some national new funky iPod to be worn to the next international 'be cool' day?

We need answers...

37

Paul

Mon 20/09/2010 - 04:42

What I think the majority of anti NBN people are forgetting is the pace technology is moving. In only 20 years we have moved from dial-up on a 56kbps modem to ADSL 2+ at 24,000kbps. I would consider that given in the past 20 years we have increased our speed requirements by over 400 times, that in the next 20 years, technology will have moved ahead in a similar pattern.

People are getting hung up on the newish wireless technology which may be capable of reaching 100Mbps, and since it can deliver the same speeds fibre is touted at, then why lay all the cables.

Fibre optic's are currently at 100Mbps but are truly capable of much much faster speeds. Imagine the fibre as a 1 metre pipe. Currently at 100Mbps the water would be trickling along the bottom of the pipe, it cannot go faster because the pump at the end can only pump at 100Mbps. By the time we have finished laying the full network, there will be better pumps, perhaps 1000Mbps, but that would still be maybe 5cm in the bottom of the pipe. The thing is, as technology advances, we only have to upgrade each end but the 'pipe' remains adequate.

Imagine if we didn't have rail networks to deliver goods when we were developing as a country in the industrial age, we wouldn't and couldn't move ahead. We crossed that bridge and steamed ahead. Now in the technology age, we much provide the intellectual super highways so we can move ahead.

I am not a labor supporter, far from it in all honesty. I run my own business and currently have no personal need for faster internet than I currently have, but, in 10 years time, when we measure files in terabytes, I will be glad we have a network capable of delivering it to us at workable speeds.

38

Brett

Mon 20/09/2010 - 08:56

Just look at the rest of the world, the future for biz and the public is anywhere anytime wireless internet? Hardware manufactures are producing notebooks, netbooks, Slate PC's & IPads. USA has the first rollout of 4G wireless with Europe following. Why does Labor want us going backwards connected to a Desk Top PC with a cable in the wall? Internet infrastructure around Australia and outbound links wont give you Giga Byte speeds. The true average global internet speed is around 5.5MBPS? Just Google it. Good fiber bearer links to Next G / 3G / 4G towers is the future or at least that where the rest of the world is heading?

39

Froghast

Mon 20/09/2010 - 09:28

But there are still many questions.

Perhaps first and foremost is, why does a market economy need the intervention of government for seemingly so beneficial and clear a product and service?

Surely as a country that has marched our boys off to a number of world wars, and a few other international interventions post the last WW in defense of the market mechanism - that country needs to apply use the fruits of those victories. This to vindicate and substantiate our strongly held belief of the optimum inherent in our market?

If we are obliged to create an artificial monopoly to create the size of scale benefits our tiny country demands. I believe this is the usual interventionist argument. Then how can we ensure that all sub-components to the industry are freely and equitably parsed into the private market sector.

Clearly the opposite thinking has triumphed in the recent past, where the private sector has twisted government's hand into creating the too numerous monopolies in the bridge and toll industries. Contrary to the true theoretical underpinning of government's role - which is to break apart the failed economics that arise in a monopoly - government walked along with many of the major institutions, into a Helter Skelter of these despicable things.

The market is left to pay. Australia continues to pay for the inefficiencies implicit in these market aberrations, and you'll continue to pay for them for many long, long years. A big national blunder - and we can thank the likes of Macquarie Bank for this.

Government must not be allowed to make this huge mistake twice. Government's primary role is to uphold the mechanics of the free market - and not intentionally and actively destroy the free market. Obviously a consequence totally unintended in the micro-monopolies scattered throughout the nation. The Ancient Roman Empire fully understood this, but modern Australia failed to grasp the logic and economics implicit! The economics of the price-quality consumed in public goods.

Two : - we are in the age of information overload. We have way too much information and the value of the information packet we continue to create, use, receive and disperse suffers a clear inverse relationship of its worth against the quantity of data available. The pool of data is awash and overflowing with relentless data already pouring in at speeds and quantities we currently cannot master.

Our data age, is an age of data noise... We haven't the usable tools to appropriately understand and gauge the totality.

We have neither the math, nor the academic underpinning, hence we walked straight into the Global Financial Crisis under the direct nose of the world's best and greatest risk actuaries. Genius, upon genius in some of the planets highest paying positions tasked to quantify the risks of billions economic data sources - failed to model or embrace the full ambit. These guys were woefully struck down by noise.

40

Raymond

Mon 20/09/2010 - 09:45

@ 3 You are more than entitled to mention any figure you wish...they may well nbe right and on the money!

So long as Conroy Quigley and Co hide the numbers, any number may well be spot on.

@13 @ 26 please do not concern yourself with the tripe from RS he is our resident Crayfish, has no idea what that means, just watch him reply, I have him in the little pot that I laced with some old meat from the carcass of D.Newman, in defence of RS, he would no m,ore play the man...as boys are his specialty!

41

Bruce

Mon 20/09/2010 - 09:46

Hi Brett, I don't think you are quite grasping the concept of an OF network.

The volume of data and the speed of transmission that every analysis done, shows us, that to increase the transmission rate you have to have a high speed bulk carrier. Wireless, simply put, is not in the ballpark, and the energy required to boost speeds even marginally in this manner would be humongous (if that is a word). In other words, the capacity of a wireless reliant system will be overwhelmed in very quick time.

This is not to say that wireless doesn't have a part to play but in the long run the optic fibre network will reduce cost to consumers by:
> Cutting out network price gouging
>Reducing end user expense for wireless equipment (someone has to pay for it) and unending upgrades.
>By providing really fast (not just quickish) transmission speeds that is energy efficient and saves heaps of man-hours ($s)
By the way the statement by Ken @2 that 70% of our internet volume is overseas is absolute BS. If you are talking site hits mmm.. may be........ but in volume terms nowhere near it, it is the business usage that chews up the band width and the vast bulk of that is domestic.

cheers

Bruce

42

The Whisperer

Mon 20/09/2010 - 09:50

Would you buy a house without knowing the price, or the Local
Government Rates Fees and Charges?
No.
Then why would you let the Federal Government sell you an uncosted NBN ?

43

Raymond

Mon 20/09/2010 - 10:28

Perhaps the NBN is French?.........they appear to be the only one's in step!

44

Raymond

Mon 20/09/2010 - 11:40

And the Greens Scott Ludlam has just placed any chance of any sale of any NBN ever built in doubt.

Oh what a great joy it is to see the Green Labor Loony Left at work!

Wouldn't know what day it was!

Wouldn't know if RS was up him!

A bloody shamozle already!

This is fun!

45

Richard Ure

Mon 20/09/2010 - 12:49

@ Ken

I look forward to the day when a ubiquitous access to news and information will provide the platform on which people become more sceptical of everything and learn to research back to authoritative sources the rumours they hear and read and no longer say things like: "I have heard that because 70% of internet use is to overseas sites, that this network will be of little use." in support of their contribution in public debate. After all, does the statement even sound as if it might be true? Even a little bit? If so, I have a bridge over Sydney Harbour going cheaply.

Try Checking out http://whirlpool.net.au/wiki/NBN_Explained

46

HazTechDad

Mon 20/09/2010 - 14:34

@Assorted NBN naysayers:
a) The NBN will not preclude wireless networks. The rollout of 3G and 4G wireless will continue unabated by the private sector, just as it always has been. The NBN will also vastly improve wireless hotspots by providing massively increased bandwidth, and IMHO we will see an explosion of Maccas-style free hotspots as bandwidth becomes faster and cheaper.

b) A 3G/4G wireless is great...BUT it will never be able to provide for our general data needs. It will only ever be a low volume, high convenience option. To give an example, a trial of 4G LTE wireless networks last year found that their peak speed of 150Mbps dropped to 7Mbps once there were just 20 users on the tower. At that rate, how many hundreds-of-thousands of towers would we need to build to maintain decent bandwidth? This parallels Telstra's current "21Mbps" NextG, which in reality is lucky to provide 5Mbps.

c) Who cares what current average world internet speeds are. We are not building a network for now. We are building it for the future. Arguing against it because we currently have 5.5Mb average is like arguing against ADSL a decade ago because average speeds _then_ were 30kbps. Have a bit of vision people.

@The Whisperer: Don't confuse cost with cost-benefit. The NBN is costed. the KMPG Implementation study found it could be built for $42.8bn. As for cost-benefit, this is a great read:
http://blogs.crikey.com.au/pollytics/2010/09/17/cost-benefit-delusions-of-the-nbn/

47

RS

Mon 20/09/2010 - 16:01

@75% of the comments here, LOL...

Now… are you finished your latest little brattish tantrums Raymond? How typically profound, up-lifting and topical…NOT!

Will you ever grow up?

I have never encountered such a burned and spiteful child…! For a man of 60, who swears he’s a successful businessman and claims to sit on company’s boards, to act so… is laughable!

Go back and read today’s comments, then if you actually believe you are a rational, intelligent human being, (let alone an actual businessman/board member) offering opinions to be heeded, well, you are even sillier and more narcissistic than anyone could ever have imagined!

You really just can’t let it go can you… you actually take all of this seriously, don’t you, LOL…???????

As such, you are compelled to say my name (as you did Newman) with every comment. So, post your address and I’ll send you a poster sized, autographed glossy pic for you to fantasize over, since you are so infatuated…!

You know, even I didn’t realise how much I have actually burned and offended you and that trumped up ego of your’s, by simply proving you FOS!

That was until you naively and spinelessly, posted under half a dozen different names, mentioning me (and hypocritically, how” I” play the man not the ball, LOL!) yesterday... refer above...!

That was the icing on the satisfaction cake for me…!

Seriously, your ridiculous play the man… RS this and RS that, today under Raymond and also yesterday under all those other names, in response to your daily humiliation at my hands/every whim (even though you are simply too dumb to see it) is an ongoing embarrassment to you and your already lost cause!

Oh Ray, I am simply taking the ***s out of you, can't you see even now that I spell it out for you A G A I N, LOL! I do this simply because you are such a pompous w***er!

How reassuring for me (to see you bite and bite) to know that my work here is having the desired affect…!

However, in all my time of ***t stirring self proclaimed, but non-existent heroes/experts, like you, I have never had one of my “lab monkeys” react as childishly and erratically as you…its truly wonderful!

I am literally laughing out loud at YOU Raymond…!

So cya soon… perhaps for another limerick, eh! You know you must! LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

48

Raymond

Tue 21/09/2010 - 12:39

All that for me Crayfish! I really do have you in the Pot good and propper.
You just don't get it!

How are the Boys! are they from Brazil?
Please explain Crayfish to us all..please, please!

49

RS

Tue 21/09/2010 - 14:48

Talking to yourself again Raymond (crayfish as you seem to prefer)... Anyway, yes all for you, seems you just admitted to being my "lab monkey"...lol

Ooh also, you already got your explanation sometime ago, via a limerick di****ad.

Go search…LOL!

For now, here’s another… #7

There once a priZe idiot named Ray
Demonstrates his childishness, each day
A mere puppet Liberal
FOS and talks drivel
Too dumb to even see he’s being played

50

Raymond

Tue 21/09/2010 - 15:09

@ 26 Donna, how close was my prediction about the resident Crayfish.

Came out all bile flowing.

His opinion of himself is that he is the David Marr or host of media watch here.

Gets names wrong, numbers wrong, has never had a first up comment woth a cent!

Sits every day in the old tattered tartan dressing gown watching Oprah and Dr Phil searching for the meaning of life, reading the personal column.

Tragic old tart really!

Watch what I get for this one!

If anybody knows what Crayfish means, tell him by all means, why should I have all the fun.

51

gnome

Tue 21/09/2010 - 15:28


@51Raymond - How about you, through your various personas, stop faffing about and get back on topic?

Otherwise those of us here who want to deal with tech issues and have little interest in politics might come to the conclusion that you are just trying to troll. Very trying.

52

Raymond

Tue 21/09/2010 - 15:41

@52 I never post under any other name for god sake! NEVER, why don't you use your right name?

You will see I only return serve, AFTER the Crayfish has a crack,if the Crayfish goes away, I will stay on topic, he just crawls into the baited pot every time.

Just have a read at how many people he has a go at, the stuff he makes up about me,is just a laugh!

Keep him out of this kettles Pot, and everybody will be happy!
And he can go back to the boys!

53

RS

Tue 21/09/2010 - 16:01

Limerick #8...

There once was a simpleton, named Ray
Compelled to reply to me, everyday
Just dangle the bait
Then have a short wait
That priZe idiot, won’t be too far away

54

final whistle

Tue 21/09/2010 - 20:56

Raymond on points and a couple of knockdowns on this one. RS came in off balance and then lost control, continuing the trend. Got to stop using the limericks RS it is droll troll.
And where is the tin foil hat man ?
I have the instructions for him in how to pick up the signal.

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