'True' broadband to deliver towering ROI

The introduction of a ‘true’ broadband network in Brisbane would boost the state economy by a whopping $5 billion, a return seven times higher than the initial investment that is required.

Similar economic benefits would be realised in other states and create more than 1600 jobs according to research jointly undertaken by The Allen Consulting Group and Ericsson.

Evaluating the economic impact of broadband in urban Australia, the research describes a true broadband network as infrastructure capable of supporting video, voice, data services and applications simultaneously at speeds greater than 10Mbps.

The analysis factors in network costs of about $850 million over a four-year construction period.

Interestingly, the study is based on a ‘greenfields network’ not utilising legacy infrastructure owned by existing or incumbent carriers.

Ericsson Australia managing director Barry Borzillo said the biggest beneficiaries would be productivity improvements for business across all sectors.

He said the state that develops broadband first will gain an advantage following in the steps of countries that have already rolled out massive networks including Japan, Italy and Sweden.

Allen Consulting Group director Kerry Barwise said the gains tower over the initial investment costs required to finance the network.

It certainly makes e-commerce more viable with Barwise pointing to a greater integration of B2C e-commerce to re-engineer and rationalise distribution channels for cost efficiencies.

“In fact, true broadband may deliver to many industries the cost efficiencies that were realised by the banking sector from the introduction and adoption of telephone and Internet banking,” Barwise said.

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