BuddeBlog

This is part of the discussion we launched ob the 7^th of April when the government announced its NBN plans. Also see the blogs:

• Outcomes BuddeComm Roundtable http://www.buddeblog.com.au/outcomes-buddecomm-roundtable/
• Smart Grids and the NBN http://www.buddeblog.com.au/smart-grids-and-the-nbn/
• NBN luddites will be proven wrong http://www.buddeblog.com.au/nbn-luddites-will-be-proven-wrong/
• Analyses of the BN (plus 60 comments) http://www.buddeblog.com.au/analysis-of-the-national-broadband-network-announcement-australia/

Digital Economy Industry Work Group

In Australia I facilitate the Digital Economy Industry Work Group (DEIWG), and internationally the Big Think Strategies Group. These groups have been providing high level strategic policy input in the broadband debates in the USA, Europe, Australia and New Zealand.

DEIWG consists of 200 people from 140 companies and is open to everyone involved in the industry, in Australia and New Zealand. There is no membership fee. We initiated this work group to help the previous government with industry advice on the open wholesale network that the previous Minister of Communications, The Hon Helen Coonan, was discussing at that time.

We also worked closely on some of these issues (such as mapping) with the then Department of Communications. When the debate shifted to FttN the industry group changed its focus and began to talk about how important it was that the government had its end goal of FttH written into the policy. If we, as an industry, want an FttH network as the end goal; then we obviously need more applications than just the Internet. This is why we changed the name of the group to DEIWG, to illustrate the importance of this infrastructure as an investment in the emerging digital economy.

Industry collaboration

As a group we have provided reports on open access principles (these are now also used as guidelines in Europe and the USA) and on FttH, green field broadband, etc. None of these reports have been written by me. They have been produced by collaborative groups within the industry.

If people want to participate in the NBN discussion and influence the government they can join DEIWG or any of the other industry groups that are actively participating in the public debate. These include ATUG, IIA, Communications Alliance and many others.

Virtual Business Networking Group

DEIWG operates as a virtual network – using technologies developed within our own telecoms industry (email, forums, wikis), we practise what we preach. We utilise the powers of modern communications to react swiftly, tapping into the best people in Australia and abroad for advice, comments and input into government and industry policy debates.

All of the reports produced by the group are publicly available. Everything we do is completely open and transparent. See: http://www.budde.com.au/presentations/Digital_Economy_Industry_Group.asp

The group is involved in much more than open access. There are workgroups on regulations, governance, skills and employment, e-applications, green fields and FttH technologies.

DEIWG approach has been very successful to date as many of the ideas and suggestions proposed by the group can be recognised in current government policies.

Australia on the leading edge

Australia certainly not alone. More and more governments are moving in a similar direction – to name a few: USA, UK, Netherlands, Sweden, Thailand, Switzerland, Greece, Singapore and New Zealand.

While we can certainly learn from these countries, it is Australia that is at the leading edge and we are out there on our own at this point. I am certainly not advocating that we should copy what is being done elsewhere, but we can learn from others, making use of whatever elements might suit us.

At a minimum, broadening our perspective to include what happens elsewhere might help us in our strategic thinking.

Telstra’s participation

Even under the difficult regime of the last few years we have had input from Telstra on FttH and wholesale. During the early stages Doug Campbell supplied a degree of connection between the group and Telstra.

I am confident that from now on Telstra will become much more involved in this process and will participate in the work of the broader industry. I have always said very publicly that we need Telstra – that we need their input and that we want to work with them. I have consistently maintained this viewpoint.

There is widespread industry consensus that we need to build on the solid infrastructure work Telstra has done in the past. Negotiations will doubtless be tough but I am convinced that a middle ground can be reached – one that will lead to win-win situations.

NBN Cost Modelling

There are also the all-important issues of cost modelling, accountability and governance. We surely need a business plan, but do we want the government to write that business plan? I certainly wouldn’t like to see that happen.

Let’s get the facts straight before we embark on a business plan.

The government documentation we have in front of us is not talking about a high-speed Internet network. Every single document and every comment on the NBN made by the Prime Minister, the Finance Minister and the Minister for Broadband talk about the trans-sector approach. This infrastructure is not just there for the Internet. More importantly it is there for health, education, smart grids and so on. Certainly the government will have to deliver on this, but Rome wasn’t built in a day. It might take some time, but the FttH network won’t be ready next year so let’s give ourselves the time to do this properly.

I believe we can only do a proper costing model if we have an idea what this trans-sector model will look like. It is therefore important to get the anchor tenants on board so we can start talking with them, to have their input in the costing model.

To expect to have all that upfront is, in my view, unrealistic. I don’t think our forebears had a fully costed model of the telecoms and electricity networks when they began to develop them, and they ended up transforming societies and economies.

So, while I am all for a proper costing model, let’s gather the ingredients for that model before we do the calculations.

Getting anchor tenants onboard

That is why I am so keen to get the buy-in from those anchor tenants. We saw Centrelink making supportive comments on how they could use the NBN, and the government is funding a $100 million smart grid/NBN trans-sector project involving the Departments of the Environment, Energy and Broadband. It is essential that these sectors be included in any costing model. The Ministers for Education and Health are all supportive of the NBN, and we now need to start talking figures so that the important calculations can be made.

DEIWG is actively working with these Departments to assist them in that process.

I agree that if this trans-sector model does not eventuate the business model for the FttH NBN is flawed, as very few people will pay $215 per month for Internet access. But shouldn’t we take this opportunity and as an industry at least try and get it to work – rather than complaining that the government didn’t do all the work for us and didn’t handed us a fully-costed business model?

DEIWG certainly wants to take industry leadership in this process and make it work. If we can pull this off it will have huge benefits for our country and for our industries.

In my opinion the government will use the implementation team to do the business planning and costing modelling work, and again there will be opportunities for the industry to participate within the consultation process that will be designed for that purpose.

DEIWG is also conferring with groups such as the ACTU and ACF. They are very supportive of the NBN and acknowledge its attendant economic, social and environmental benefits. We live in a world where virtual networking and collaboration are keywords and DEIWG is very actively pursuing the benefits offered by these new practices.

Until then DEIWG will most certainly be giving it its best shot.

Paul Budde

See also:

• Australia – Trans-sector thinking leading to smart communities
• Australia – National Broadband Network – Overview & Analysis
• Australia – National Broadband Network – Critical Considerations
• Australia – Smart Grids – Climate Change and Photovoltaics
• Global Recovery will depend on Trans-Sector Vision
• Global – Investing in the Communications Revolution
• Global – Analysis – Business Opportunities beyond Structural Telecom Changes;
• Global – Analysis – Government telco policies to kick-start the economy;
• Global – Analysis – The Financial Crisis and Economic Stimulus Packages.
• Global – Analysis – Government Infrastructure Policies as Economic Stimulus
• Global – Infrastructure – Open Networks;
• Global – Infrastructure – Strategies for the Digital Economy
• Global – Infrastructure Policies to Stimulate the Economy
• Global – Infrastructure – Functional and Structural Separation
• Global – Internet – Net Neutrality Analysis
• Smart Cities, Buildings & Communities
• Smart Grids – Energy & Environmental Issues
• Smart Grids – Global Overview & Activities
• Smart Grids – Grid IT – Where Energy Meets Comms
• Smart Grids and the Communications Revolution

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This entry was posted on Monday, May 18th, 2009 at 4:28 pm and is filed under From Paul's Desk. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.