Technology news and Jobs arrow VIRTUALISATION arrow Industry eager to exploit NBN
Industry eager to exploit NBN E-mail
by Stuart Corner   
Friday, 05 December 2008
The Australian Computer Society last week called for the Government to support the development of services that would exploit the future National Broadband Network, but according industry researcher, IBISWorld, industry is already champing at the bit for 12Mbps, and for speeds well beyond that.

"People can already see ways to get a return on this infrastructure," IBISWorld industry manager, Mark Ganz, told iTWire. "They will start businesses and services. They are just waiting for the speed. We have seen business try to get up, like video on demand, but they were before their time. The infrastructure just does not support them."

This view contrasts starkly with that of the ACS whose chairman Kumar Parakala, iTWire reported last week saying that a holistic view on how to leverage the NBN was as important as the infrastructure itself."

He said that any NBN would take a long time to build and by the time it is well established, "Savvy operators will have been able to pick holes in the market...It is very clear looking at long term trends and at other countries that there wil be a large industry that will really benefit and savvy operators will make good returns by begin first in the market."

However Ganz said that much of the gains would require speeds well beyond the 12Mbps minium promised by the NBN, noting that such speeds are already widely available.

"[12Mbps] won't bring any real increase in speed, just uniformity in speed. That is important, but it is only the first step to what we have identified as true broadband at 100Mbps. There is still a benefit at 12Mbps but it is nowhere near what it would be at 100Mbps."

IBISWorld's insights come from its core business which is providing industry research. "We cover some 500 industries in Australia and 700 in the US and about 80 global industries" Ganz said.

"Wee had some strategic discussions about this a few weeks ago, and while it is hard to spit out precise numbers, in terms of revenue increase. it is very easy to pick which industries will be the large benefactors of true broadband."

He said that health and online education were obvious candidates. "Online education is a massive growth industry in Australia, growing at double digit rates, and there is no reason why Australia could not export those services to neighbouring countries...Our long term forecast for those industries is very rosy indeed."
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