The Business Benefits of the National Broadband Network.

There’s little doubt in my mind that the National Broadband Network will be a major benefit to Australia, way past the investment we’re making in it. It’s one of those rare pieces of legislation that will almost certainly outlive the government that started it and the Labor government should be commended for that. Indeed something like the National Broadband Network is almost a necessity if Australia wants to keep pace with the rest of the world in a technological sense as otherwise we’d be stuck on aging copper infrastructure that really doesn’t have any legs left in it. Still whilst anyone in the IT or related sectors would agree that the NBN will be good for business it’s not entirely clear what those benefits will be.

News.com.au ran a story this morning that pointed to research showing only 30% of Australian businesses had a “medium to high” understanding of the benefits available to them through the NBN. Making a few assumptions here I’m guessing the survey didn’t ask actual questions to gauge their true understanding so it’s likely that that number is actually a lot lower than the survey lets on. I’ll admit that for a non-technical person, who was likely the one answering the survey, the benefits of ubiquitous high speed Internet for your business are not entirely clear especially when the Internet they have now is probably doing them well enough.

The businesses geared to make the most of the NBN are ones with multiple offices spread throughout Australia. Right now getting a good inter-office connection, whether a full WAN or just some trickery using VPN tunnels and a regular ADSL, is either an expensive or complicated affair. The NBN will provide high speed interconnects at prices that many businesses will be able to afford. This means you’ll be able to get almost 100MB connections between offices giving you LAN like speeds between disparate offices. It might not sound like much but even small government agencies currently struggle with this (I’ve worked for more than one) and the boost in productivity from better connections between regional offices is very noticeable. This would also extend to remote workers as well, since it’s highly likely that they’ll have NBN access as well.

Having a large connection also enables businesses to move services out of expensive hosted data centres and onto their own premises. Right now it’s nigh on impossible to host client facing services internally unless you want to shell out a lot of money for the business type Internet plans. The NBN will bring data centre level speeds to almost every home and place of business in Australia enabling current businesses the opportunity to migrate inwards, saving on rental and administration costs. Sure the facilities they have might not be as good as what they can get elsewhere but the cost savings of not using a co-located service (believe me, they’re not cheap) would be more than worth it.

There’s also a host of services that are currently infeasible to operate, due to their high bandwidth use, that would become feasible thanks to the NBN. Such services won’t be available immediately but as the NBN reaches a threshold of active users then we can expect either local innovators to create them or for current Internet giants to localize their services for Australia. Predominately I see this taking the form of cloud based services which are accessible from Australia but have yet to have local nodes due to the lack of supporting infrastructure. This would also help cloud providers crack into that ever elusive Australian government sector which has remained resistant due to the restrictions placed on where their data can be stored.

The NBN will also bring about many other ancillary benefits due to the higher speed and ubiquitous access that business will be able to take advantage of. Indeed the flow on effects of a fully fibre communications network will have benefits that will flow on for decades for both businesses and consumers alike. Realistically this list is just the tip of the iceberg as over time there will be numerous services that become available in order to take advantage of our new capabilities. I personally can’t wait to get onto it, enough so that moving to one of the fibre enabled locations is tempting, albeit not tempting enough to make me move to Tasmania.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.