Time for a real national broadband policy

Stuart Corner
Monday, 28 January 2008 12:34

Opinion and Analysis

It was stated thus: "A Rudd Labor Government will: partner with the private sector to deliver the national broadband network over five years; undertake a competitive assessment of proposals from the private sector to build the network; ensure competition in the sector through an open access network that provides equivalence of access charges and scope for access seekers to differentiate their product offerings; put in place regulatory reforms to ensure certainty for investment; and make a public equity investment of up to $4.7 billion.

"This commitment will be financed from existing government investment in communications, including the $2 billion Communications Fund and through the Future Fund's 17 percent share in Telstra, which will earn dividends and be sold down to a normal market level after November 2008."

And there are a few more pages in the policy to justify the investment, referencing external studies reports etc to highlight the importance of broadband to different sectors of th community. But it's precious little to justify the expenditure of $4.7b of public money.

When the ALP released its policy it gained a certain kudos because, at least it represented a clarity of purpose to do something on a big scale about broadband. But the question of whether it is the right something has never been fully investigated.

As the US study observes: "The existence of significant positive externalities from broadband provides a compelling rationale for a proactive national broadband policy. The question then becomes what the priorities of that policy should be. The answer is anything but straightforward. Advocates of a more proactive broadband policy advance at least seven different goals, including: expanding access to more geographic areas; expanding adoption rates, particularly by low-income households; ensuring low costs for service providers; ensuring low prices for consumers; spurring higher speeds; boosting competition among service providers; and guaranteeing an open, neutral network."

It concludes that: "Ultimately, given limited resources, a focus on one goal will mean less advancement toward another. Both the reality of the political process, which strives to accommodate a wide variety of interests - and the imperative to create good public policy - suggest that any broadband policy must pursue both equity and growth goals. The key is to do so in ways that minimise trade-offs and maximise efficiency and effectiveness."

I would suggest this applies equally to Australia and is a task yet to be undertaken.