Broadband Essential to Economic Growth

By Greg McNevin

June 22, 2007: Australia’s broadband capabilities (or rather lack of) may be getting kicked around parliament for political mileage at the moment, however, no one doubts that significant works needs to be done to stop our country slipping further towards becoming an internet backwater.

According to the Australian Information Industry Association (AIIA), Broadband provides the key to both Australia’s long-term productivity and economic growth.

While both Labor and the Coalition are flexing their IT credentials, the association has welcomed both major political parties’ broadband policies, as they have at least finally acknowledge the importance of broadband to the future of Australia’s economy.

“We now have two viable proposals for connecting Australia and providing fast, affordable and accessible broadband to almost all of Australia’s population,” said AIIA’s Chief Executive Officer, Sheryle Moon.

“But what we also want to see is both sides of politics recognise that broadband is more than a communications issue – it is an industry issue, and so should be dealt with as part of industry policy.”

Moon added that without adequate broadband infrastructure, Australia will not be able to attract investment from global companies, and simultaneously Australian SMBs will be hamstrung by infrastructure.

“Right now just 9 per cent of Australian small-to-medium enterprises are open for business over the Internet. They may have a static web presence – essentially online brochureware - but very few are actively engaging in e-commerce,” said Moon.

“To boost your online activities, you need to be able to access fast, powerful broadband to deliver on your customers’ needs and your business goals.”

Moon also highlighted recent Economist Intelligence Unit (EIU) rankings of the developed world’s e-readiness, which saw Australia slip to ninth position from eighth in 2006.

“Australia cannot afford to be complacent. While our nation’s score of 8.39 is well above the global average of 6.24, there is room for improvement, particularly in areas of connectivity and infrastructure – where we trail behind countries such as Switzerland, Sweden, Denmark and the UK.

Moon likens broadband to “the engine room of our nation’s productivity” and claims that increasing its adoption and use will improve international competitiveness, deliver significant increases in GDP, expand employment and revolutionise the way services are delivered across the economy, in areas as diverse as health, education, research, small business, government and media.

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