Report says rural business needs certainty on future broadband services

Stuart Corner
Tuesday, 17 May 2011 14:45

IT Policy - Government Tech Policy

The Federal Government's Rural Industries Research and Development Corporation (RIRDC) has published a report with case studies examining how broadband can benefit six Tasmanian businesses, saying that rural businesses need a level of certainty about the type and quantity of services available to them in the short and medium term.

However, despite examining businesses in the NBN pioneer state of Tasmania, the report makes only passing reference to the NBN and does not specifically examine (with the exception of a case study of ISP TasmaNet) how the businesses studied would benefit from whatever NBN services are available to them. Nor did it examine the question of what service technologies are best placed to meet regional needs.

However it does identify a leadership role for the RIRDC, saying: "The confluence of developing information and communications technology and the rollout of the National Broadband Network means that rural businesses have increasing access to high speed broadband.

"The identification of this area as a priority for the Rural Industries Research and Development Corporation's (RIRDC) Resilient Communities Program is a significant strategic opportunity for RIRDC to show leadership in developing an area of importance to the government's economic and rural productivity agenda."

It concludes: "There are common constraints that rural businesses are facing to realise the productivity benefits of high speed broadband. Given the significant potential benefits, there are important opportunities for policy makers and research and development corporations to engage on these issues."

It says the case studies and its background analysis "identify areas for further investment and inquiry with the potential for significant returns." These it lists as:
- minimising the transaction costs and knowledge barriers involved for business owners in understanding technology options and how these relate to their business situation;
- stimulating the development of the local commercial innovation system which is driven by engagement by local ICT service providers with rural businesses;
- quantification of productivity gains from commonly utilised ICT innovations to better estimate the value of broadband connection to rural industry;
-ensuring information and applications to support management of issues where there is a significant public good component are integrated with broadband technology use.

It also identified "Targeted research to minimise the transaction costs for business owners considering common ICT decisions" as "a significant research opportunity flowing from the case studies."

The report found that, with the exception of one business that invested in dedicated in-house ICT expertise, the businesses studied "found it hard to identify opportunities and the particular technology that would be likely to be successful in their business context."

It found "common areas of identifiable need that suggest that a non-industry specific assessment of technology options and decision criteria could add significant value for business owners," listing these as: smart phone applications; sensor and RFID technology; pay and accounting systems; database and data analysis software, and website design and management.