NBN to drive critical mass for new apps: Conroy

James Riley
Friday, 11 December 2009 06:58

IT Policy - Government Tech Policy

Australia does not have the critical mass of connections that would allow for the natural development of emerging applications in areas like e-health, education and business productivity and required Government intervention, Communications Minister Stephen Conroy said.

The massive Government investment in the National Broadband Network was an enabling investment in the broader economy, and in social service delivery, Senator Conroy said.

"For people who have argued that the Government should instead be focussing on health, education, water management, energy efficiency or regional infrastructure – this is one of those rare occasions where investment in one area results genuine flow-through benefits for these sectors as well," Senator Conroy said.

"Investment in high-speed broadband is about investing in health. It is about investing in education. It is about investing in energy efficiency measures. It is about investing in the capacity and future vitality of our regional centres," he said.

Another underlying problem with the Australian market was that the structure of the industry did not support genuine competition to delivery the services that would support the needs of the digital economy.

"We do not have a critical mass of connections to support emerging e-health and aged care applications, or for schools to develop new collaborative learning opportunities," Senator Conroy told the Realising our Broadband Future conference in Sydney today.

"Regional business does not have the same broadband opportunity as that in the city – a particular irony given the potential for the digital economy to boost regional economies in general."

The Government investment in the network would create an "era of critical mass," enabling the creation of new digital possibilities across the broad economy.

"It will be an era of new and unexpected productivity gains, producing flow-through benefits in the way we manage major infrastructure, traditional industries and services," Senator Conroy said.

"The NBN will provide the critical mass of speed, access and competitive service delivery to support innovation and new business models for the future."