Featured IT News

Orange, Amazon Web Services ink global strategic agreement

25 November 2020 in Strategy

French-based telecommunications provider Orange Business Services has signed a global strategic collaboration agreement with Amazon Web Services (AWS) aimed at…

Ransomware gangs likely to start monetising stolen data: researcher

25 November 2020 in Security

Ransomware gangs have shown themselves to be an innovative lot, incorporating more and more tactics as they look to extort…

Six Australian spy agencies collected COVIDSafe data: watchdog

25 November 2020 in Health

Six Australian intelligence organisations have "incidentally" collected data from the COVIDSafe app, according to a report from the watchdog, the…

Google's Vint Cerf takes up cudgels for company over news media code

25 November 2020 in Technology Regulation

Australian news businesses that are arguing for a news media code to ensure that digital platforms pay for their content…

Victoria to spend $626m on mobile coverage, broadband access

25 November 2020 in Government Tech Policy

The Victorian Government will spend $626 million on a Digital Future Now initiative to improve mobile coverage and broadband access…

Google may be hit with second anti-trust suit next month: report

24 November 2020 in Technology Regulation

Search behemoth Google may have another challenge on its hands next month, with a group of US states, both Republican…

Morse Micro tops up coffers with extra $18 million from new funding round

24 November 2020 in Strategy

Australian semiconductor IoT start-up Morse Micro has secured $18 milion in additional funding as it moves to expand its product…

Online shoppers warned to be on alert as scams increase, losses climb to $7 million

24 November 2020 in Security

Australians have been warned to be careful when buying gifts this holiday season as losses to online shopping scams have…

China pushes US to second place in cross-border data flows

24 November 2020 in Networking

China has overtaken the US as the dominant nation as far as cross-border data flows are concerned, the website Nikkei…

Melbourne firm develops new digital ID system using high-security card

24 November 2020 in Security

Melbourne-headquartered hi-tech firm VeroGuard Systems has released a locally developed digital identity platform which, after several years of testing, is…

Australian legal industry provider Law In Order hit by Windows ransomware

24 November 2020 in Security

Australian end-to-end document and digital solutions provider to the legal industry Law In Order says it has suffered a "cyber…

Israel cyber directorate warns of remotely exploitable Drupal flaw

24 November 2020 in Security

A warning has been issued by the Israel National Cyber Directorate about a critical remote code execution flaw in the Drupal…

E-commerce businesses sign up to new product safety pledge: ACCC

23 November 2020 in Technology Regulation

Four of Australia’s largest e-commerce businesses have confirmed their commitment to protecting consumers from unsafe goods online after signing on…

Consumer complaints about telcos increase over quarter

23 November 2020 in Telecoms & NBN

Consumer complaints to Australia’s telcos increased by 7.8 complaints per 10,000 Services- in Operation (SIOs) for three months of the…

New Microsoft chip will come with added costs, says ex-NSA hacker

23 November 2020 in Security

Microsoft's new security chip, announced last week, will have an impact on hardware-only attacks, an American security professional says, adding…

Victoria to hit owners of EVs, hybrid cars with tax in 2021

23 November 2020 in Automotive

Victoria will impose a 2.5 cent per kilometre travelled levy on electric cars used by residents from July 2021, the…

Media bosses ramp up pressure on govt over news media code

23 November 2020 in Technology Regulation

With Parliament having just another eight days to sit this year, the bosses of Australia's media organisations have sought to…

Time for Scott Morrison to request Biden to free Julian Assange

22 November 2020 in Open Sauce

With the Democrat Joe Biden set to take over as the next US president on 20 January 2021, it is…

Breaking IT News

VIDEO Interview: Zscaler CISO Deepen Desai talks 2020 State of Encrypted Attacks report

25 November 2020 in Security

With Zscaler’s new research showing attackers turning to encrypted attacks during the pandemic, and encryption-based threats growing by 260% this…

WorldRemit, Digicel to offer international money transfers to Pacific Islands

25 November 2020 in Deals

Global digital payments provider WorldRemit and digital services provider Digicel International have cut a deal to provide international money transfers…

Smart home devices in use forecast to almost double by 2025

25 November 2020 in Entertainment

There will be almost 13.5 billion smart home devices in active use by 2025, compared to an expected 7.4 billion…

UK group wants Google's 'privacy sandbox' tech launch delayed

25 November 2020 in Technology Regulation

An alliance of British businesses, that is campaigning to stop Google from allegedly controlling the open Web, has asked the…

Microsoft, SAS in deal to provide SAS Cloud on Azure in Sydney

25 November 2020 in Cloud

The Australian divisions of Microsoft and analytics provider SAS will provide SAS Cloud on Azure, making it the second SAS…

EMEA smartphone market returned to growth in 3Q: IDC

25 November 2020 in Mobility

The smartphone market in Europe, the Middle East and Africa cast off its coronavirus blues in the third quarter, registering…

OPPO, realme offer phone, watch deals for Black Friday

25 November 2020 in Mobility

Chinese smartphone makers OPPO and realme have announced a number of deals on phones, watches and ear buds for the…

Pure Storage extends as-a-service options

25 November 2020 in Storage & Cloud Storage

Pure Storage is offering managed storage in the cloud or on premises at the same price. Customers pick the service…

Australian-owned ASPI using US funds for anti-China reports

24 November 2020 in Open Sauce

The Australian Government-owned defence industry lobby group, the Australian Strategic Policy Institute, appears to have spent oodles of American money…

Get Friendie with Air Duo

24 November 2020 in Mobility

Victoria-based, Australian-owned audio accessory vendor Friendie's latest product is the Air Duo over-ear headphones.

IntegrationQA offers onshore GitLab as a service

24 November 2020 in Cloud

GitLab specialist IntegrationQA is making it easier to keep Australian proprietary data onshore.

Amazon SageMaker Studio arrives in Sydney

24 November 2020 in Cloud

AWS' Amazon SageMaker Studio IDE for machine learning is now available in the Asia Pacific (Sydney) region.

Vonage wins deal with global manufacturer Fisher & Paykel

24 November 2020 in Deals

Global cloud communications company Vonage has been chosen by appliances manufacturer Fisher & Paykel, to drive its customer service communications…

Hawaiki boosts cable capacity, speed with Ciena tech

24 November 2020 in Telecoms & NBN

New Zealand cable operator Hawaiki Submarine Cable has announced that it would deploy Ciena's WaveLogic 5 Extreme technology that would…

Not all HDMI cables are the same: Belkin range receives 'Ultra High Speed HDMI Certification'

24 November 2020 in Home Tech

Belkin's focus on continued highest quality standards and certifications continues Belkin’s industry leadership in HDMI, as recognised by the HDMI…

iPads for gun permits: Apple global security chief indicted in bribery case

24 November 2020 in Deals

The head of global security at Apple and two top officials from the Santa Clara County Sheriff's Office and a…

Your Service Desk Is Stale And You Didn’t Know It

24 November 2020 in Enterprise Solutions

COMPANY NEWS: Atlassian’s Jira Service Management is a game changer for your Service Desk!

Virtual load balancer technology boosts Balmain’s business

24 November 2020 in Enterprise Solutions

COMPANY NEWS: Financial services specialist Balmain has boosted its IT systems speed, increased reliability to 99.9 percent, added new services…

Kaspersky warns of fake Amazon sites ahead of Black Friday

24 November 2020 in Security

Russian security firm Kaspersky claims to have detected close to 20,000 phishing attempts this year by people using fake Amazon…

Nokia cuts deal to provide IoT services to China Mobile unit

24 November 2020 in Business Telecommunications

Finnish telecommunications equipment vendor Nokia has cut a deal with China Mobile IoT to ensure the delivery of IoT connectivity…

IT spending in India expected to rise again next year: Gartner

24 November 2020 in Development

Spending on IT in India is projected to grow to US$81.9 billion (A$112.5 billion) next year, an increase of 6%…

 

Reviews

 

Opinion

 

Telecommunications

 

Popular News

Subscribe to Newsletter

*  Enter the security code shown:

WEBINARS ONLINE & ON-DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News

Comments

×

Warning

JUser: :_load: Unable to load user with ID: 63
Tuesday, 01 February 2011 13:57

NBN cost benefit analysis would be real challenge, says IBES study

By

The Institute for the Broadband Enabled Society (IBES) at the University of Melbourne has holds out little prospect of a meaningful cost-benefit analysis of the National Broadband Network being possible.

The Opposition has consistently demanded that the Government direct the Productivity Commission to undertake a full cost benefit analysis of the NBN, and the Government has consistently refused.

The 105 page paper, 'Valuing Broadband Benefits: a selective report on issues and options" https://broadband.unimelb.edu.au/resources/ValuingBroadbandBenefits.pdf was prepared for IBES by Richard Hayes of the Melbourne Business School at the University. It looks at some of the methods that could be used to value the benefits of high speed broadband, with a particular focus on the NBN and in the context of any social cost benefit analysis of the NBN.

The author says that cost benefit analyses typically take two forms: a social cost benefit analysis (sometimes just termed a cost benefit analysis) and a private cost benefit analysis (also called a financial evaluation).

"The fundamental concept underlying the measurement of social benefits is the aggregate willingness to pay of the population for the effects of the policy or project," he says.

"In other words, social benefits are valued by summing individual's willingness to pay where willingness to pay refers to the amount a person would have to pay under the project or policy to be indifferent between the project or policy and the status quo."

However: "The basic issue is that we do not have much revealed information about private willingness to pay for broadband under the future NBN setup. This is because the product essentially does not currently exist in Australia, and so market price information is limited."

He says that some broadband benefits, (eg reductions in health care costs via the use of electronic health records) are likely to be estimable by careful analysis of cost savings. "However working out how much value end users place on, say, high speed broadband over basic broadband, requires different methods."

In the report he examines a number of possible ways of doing this:

CONTINUED

You can read more stories on telecommunications in our newsletter ExchangeDaily, click here to sign up for a free trial...




- Asking people directly, so-called contingent valuation;
- Discrete choice modelling, which uses "choice experiments" where people are asked to choose between hypothetical bundles of broadband options with different characteristics (such as speed and reliability etc), and then whether they would choose these hypothetical options over their existing (actual) broadband service. The willingness to pay for different characteristics of broadband is then econometrically estimated from all observed choices.

- Hedonic pricing, in which an estimate of value for a non-marketed item can be inferred from prices. The report looks at two possible hedonic pricing avenues for assessing the benefits: the effect of broadband on property prices and the effect of broadband attributes on broadband pricing.

Estimating willingness to pay presents particular challenges; "'¦methodologies for estimating WTP are not straightforward in application. They require specialist survey and statistical expertise. They cannot perfectly allow for the fact that users may not appreciate the benefits of higher speed broadband until they have experienced it. This is especially the case for applications that are not available at the consumer level yet."

An approach using hedonic pricing and property values also appears to hold little promise. "Using property pricing hedonic regression to derive value estimates for broadband is an intriguing conceptual possibility. However it does not seem likely that the data requirements can be met at this stage," Hayes concludes.

Overall he concludes "The hedonic pricing approaches discussed [in the report] have theoretical appeal'¦Unfortunately in this case the hedonic regression approaches are unlikely to be adequate for a prospective cost benefit analysis. The data requirements appear likely to be too onerous for these approaches, and even if Australian data was available it is unlikely to have the extent and kind of variation needed for useful results. This is particularly the case for moving to very fast broadband, which is essentially beyond the current Australian household experience."

He says that a social cost benefit analysis of the NBN would raise questions that may be impossible to answer analytically.

CONTINUED


You can read more stories on telecommunications in our newsletter ExchangeDaily, click here to sign up for a free trial...




To what extent will services that are yet to be developed ultimately contribute to social welfare?

How much value will come from the development of future services and applications for very fast broadband, value like the then unanticipated value that accompanied the historical moves to basic broadband and fast broadband?

How likely is the move to very fast broadband to have the same scale of unforeseen applications and benefits that accompanied the shift to basic broadband and fast broadband?

What further unforeseen value or services might be released by having an entire population on fast or very fast broadband?

Hayes does, however, hold out some hope that some sort of meaningful cost benefit analysis could be undertaken. "Ultimately an analyst undertaking a social CBA might'¦examine the question - given estimated costs and given estimated values for calculable benefits, how much value is needed to come from various difficult to estimate benefits for the project to have net benefits? The answer to this question would still be subject to uncertainty, but even with uncertainty it would be informative to decision makers."

You can read more stories on telecommunications in our newsletter ExchangeDaily, click here to sign up for a free trial...

 


Subscribe to ITWIRE UPDATE Newsletter here

Now’s the Time for 400G Migration

The optical fibre community is anxiously awaiting the benefits that 400G capacity per wavelength will bring to existing and future fibre optic networks.

Nearly every business wants to leverage the latest in digital offerings to remain competitive in their respective markets and to provide support for fast and ever-increasing demands for data capacity. 400G is the answer.

Initial challenges are associated with supporting such project and upgrades to fulfil the promise of higher-capacity transport.

The foundation of optical networking infrastructure includes coherent optical transceivers and digital signal processing (DSP), mux/demux, ROADM, and optical amplifiers, all of which must be able to support 400G capacity.

With today’s proprietary power-hungry and high cost transceivers and DSP, how is migration to 400G networks going to be a viable option?

PacketLight's next-generation standardised solutions may be the answer. Click below to read the full article.

CLICK HERE!

WEBINAR PROMOTION ON ITWIRE: It's all about webinars

These days our customers Advertising & Marketing campaigns are mainly focussed on webinars.

If you wish to promote a Webinar we recommend at least a 2 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site itwire.com and prominent Newsletter promotion https://www.itwire.com/itwire-update.html and Promotional News & Editorial.

This coupled with the new capabilities 5G brings opens up huge opportunities for both network operators and enterprise organisations.

We have a Webinar Business Booster Pack and other supportive programs.

We look forward to discussing your campaign goals with you.

MORE INFO HERE!

BACK TO HOME PAGE

Share News tips for the iTWire Journalists? Your tip will be anonymous