Australian businesses want faster broadband
By Jesse Hogan and Dan Harrison | theage.com.au | 22 October
Australian company chief executives overwhelmingly endorse the need for the multibillion-dollar national broadband network — just don't ask them to pay more for it.
The suggestion that 73.5% of Australian businesses were keen to join a national fibre-based broadband network, the type proposed by the Federal Government, came from an Australian Industry Group survey of 526 domestic chief executives.
While almost three-quarters of these chief executives were enthusiastic about the benefits of faster connection speeds, only a quarter "indicated a willingness to pay a 'premium price' for their business to gain access to higher-speed broadband".
Their justification for faster broadband was, however, undermined by 39.7% of respondents being unaware of their current connection speeds.
Communications Minister Stephen Conroy hailed the results of the survey as evidence that chief executives understand the importance of upgrading the national broadband infrastructure.
"Even as recently as yesterday there was still a call from our opponents to have a major cost-benefit analysis about whether we need it," Senator Conroy said.
"Well, that's the thinking from the last 12 years, but the CEOs of Australia are looking forward into the 21st century."
While 66% predicted their business would "benefit greatly" from a new network, only 17.6% predicted the faster connection speeds were "likely to generate new products and services".
Just over half of small business chief executives — 56.3% — said they were likely to shift to the new network. But the rest would have to shift as well if, as expected, it is mandatory that all telephone lines in the network footprint be connected to the new network.
The Opposition established a Senate committee earlier this year to "thoroughly examine" Labor's rationale for committing $4.7 billion to the national broadband network tender, which is open until November 26.
When asked about the prospect of Senate intervention slowing the already-delayed tender process, Ai Group chief executive Heather Ridout said she would "be arguing very strongly that any political party that doesn't understand the value of this investment ought to get themselves into the 21st century".
"We need to move ahead with some urgency and I think everyone should accept that," Mrs Ridout said.
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First published by TheAge.com.au on October 22 2008
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