NBN could add $3800 in benefits: Deloitte

But not all the benefits of the NBN would be visible, says Deloitte

A new Deloitte Access Economics report prepared for the federal government estimates households will be worth $3800 more in 2020 through improved productivity from the National Broadband Network (NBN).

The report analysed six areas of potential benefit, including communications, e-commerce, online services, employment, quality/price changes and travel savings.

The report stated improved productivity could result in $1930 in benefits and teleworking $634 in benefits in 2020.

The report stated productivity benefits could include improved communication tools, online and lower cost marketing, online shops that reduce the need for bricks and mortar and reduce occupancy costs and cloud technologies than can reduce IT spending.

“There are variations in benefits according to whether people live in the city or a regional area, mostly relating to travel," the report stated.

"That said, broadband, particularly in regional areas, will open up opportunities to allow regional residents to better participate in the digital economy."

The report outlined several case studies, including a project manager who travels interstate and overseas for work.

According to Deloitte, in 2020 the single professional would be able to use multi-party video conferencing and no longer need to travel for face-to-face meetings. This would save on travel time and costs and allow the project manager to study a master’s degree via an online virtual class.

However, Deloitte said that not all the benefits of the NBN would be visible.

“Many of the benefits will emerge gradually, as consumers find price discounts and variety online, as more employees are allowed to telework, and as people get more accustomed to accessing services online,” the report stated.

“There will be a lot of change from the broadband revolution and there will be a gradual transition this decade.”

Guy Cranswick, advisor at IBRS, has cautioned that the Deloitte report needs to be read with “caveats” and he is sceptical about the findings of the report for two reasons.

“One is the sponsor of the report -- [the federal government] -- and it's wise to produce results the sponsor wants. Secondly, these future results of technology are always good which is not the reality we live with,” he said.

“Having read hundreds over these type of reports over the years there is never a downside, a failed or an ambiguous result, associated risks, incidental costs that were not factored -- it is always going to be an advantage.”

Cranswick said the biggest limitation of the report is that the NBN is not fully completed yet, which means the end results cannot be accurately measured.

He said the report is likely to be used for political gains and said ultimately any reports on the NBN need to be a work in progress as new data about the network and its benefits becomes available.

“These reports intend to demonstrate that expenditure will yield positive results and they tend to [be] simplistic mechanistic arguments -- more bandwidth equals more teleconferencing and [that] means less road traffic which means more savings,” Cranswick said.

“Show me how and where human behaviour with technology is that clear cut?”

Tags DeloitteNational Broadband Network (NBN)teleworking

More about Access EconomicsIBRS

2 Comments

yeahImaporndownloaderandanetworkarchitectbooyah

1

yeah, while NBN "could" enable a bunch of productivity benefits which are really stretching it, since functional teleworking has been available for the last 10 years because I have been doing it globall. One thing the NBN "will" deliver is really really fast access to porn (at least until you hit the submarinne cable which is congested with all the other people downloading porn and assuming there are no local high bandwidth connected seeds). I suppose in reality though, the opening of the fibre-porn-to-home network is pretty much guaranteed to swamp the submarine cables once up and running, so the actual overall Internet perfomance will probably go down. Oh well, thats what happens when polititians simplify complex networks down to simple Bogan slogans.

Greg

2

Well there will be no fibre to the home as it will be axed soon after the election.
Just in case your wondering, the porn industry is the biggest player of new technology and spends millions in research and tools for users on the internet. Lots of tools from porn have gone main stream and most do not know of a programs origin.
If it was not for the pron industry video conferencing would still be very 1980's, just for one.
So you can discredit the porn industry all you like but it supports innovation.

Comments are now closed

Bunnings drives productivity with iPod Touch rollout

READ THIS ARTICLE
DO NOT SHOW THIS BOX AGAIN [ x ]