Industry eager to exploit NBN

Stuart Corner
Friday, 05 December 2008 06:19

IT Industry - Strategy

Ganz said the key issue for the Government in establishing the NBN would be the legislative framework. "This needs to be spot on so that the balance between competition and [the network operator] making a return makes it equitable for everybody."

IBISWorld identifies the big winners from 'true broadband as being:
health, telecommunications; gaming & online entertainment, retail and education.

"Telecommunications will be a $40 billion business in 2009 – representing almost 30 percent of the ICT industry’s $135 billion revenue. Looking ahead to 2014, IBISWorld expects ISP revenue to grow at a real annualised rate of 4.3 percent per annum to $8.5 billion, climbing to $9.1 billion by 2016 – 1.4 times this financial year’s revenue – with profitability not improving until later years when ISPs are able to capitalise on a NGN investment."

IBISWorld says that massive multiplayer online games are "the future of gaming, with World of Warcraft still leading the field with around 10 million users globally."

In retailing, an NGN would "intensify competition between Australian outlets and overseas retailers who will gain further access to the local market.

"Increased internet speeds will enhance the online buying experience by incorporating more video content, multimedia and interactive tools and first-class graphics to help customers visualise products and counteract fears of purchasing goods 'sight unseen'. These may include video clips of products being used, and for fashion sites, virtual wardrobes and stylists."

IBISWorld expects the industries set to suffer the most from the development of a next generation network will be those that generate the bulk of their revenue from film, television, music or newspaper publishing.