BuddeBlog

I am not overly enthusiastic about the Opposition’s relentless politicking in relation to the NBN, but they do have a point – one that is also being made by others in the business and financial world – that there is a need for a sound business plan. 

You can’t write such a plan without having all the ingredients that are to go into it, but there will come a time when further delay is out of the question. 

A key problem area that BuddeComm believes has still not been properly addressed is the need to take into account within the business model the financial benefits of the other sectors that will participate in the NBN. These social and economic benefits that will flow from these national interest projects need to be monetised. 

At the very start of the project the prevailing sentiment was that you could build a commercially viable NBN based on the revenues generated by high-speed Internet services and entertainment (IPTV). We have opposed this view from the outset, as there is no evidence anywhere in the world that any more than 10%-25% of the population would be willing (or able) to pay the price for such a service, which would cost well above $100 per month, and more likely close to $150. 

Such an outcome would be totally unacceptable for the NBN, both commercially and politically. 

At the same time the international community is now following Australia’s lead in accepting that the development of a trans-sector policy is essential. We need sectors such as healthcare, education, energy, public safety and business to use the NBN, thereby sharing costs and reducing the end-user price. 

Very simply, without a government-led trans-sector approach – that is, government policies that will direct these sectors to use the NBN for the delivery of their national services – it will be difficult for any business to succeed financially. 

A very positive development in this respect is that in the five mainland NBN pilot sites the utilities and NBN Co are working together, looking for the synergy that can be achieved by combining forces in relation to the rollout of smart grids and broadband. This model could perhaps also be a blueprint for other sectors to engage with NBN Co. 

If the business plan is going to work far more emphasis will need to be placed on trans-sector policies. 

• Australia – National Broadband Network – Changing the media model
• Australia – National Broadband Network – Overview & Analysis
• Australia – National Broadband Network – Critical Considerations
• Australia – National Broadband Network – Competition and Regulations
• Australia – National Broadband Network – Deployment Strategies
• Australia – National Broadband Network – Early Projects
• Australia – National Broadband Network – Industry at crossroads
• Australia – National Broadband Network – NBN Co and Infrastructure
• Australia – National Broadband Network – Overview & Analysis
• Australia – National Broadband Network – Telstra
• Australia – National Broadband Network based on Trans-sector model
• Australia – National Broadband Network Trans-sector projects
• Australia – National Broadband Network – Government’s Trans-Sector Conference

This entry was posted on Monday, March 15th, 2010 at 10:00 am and is filed under News & Views. 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.