The NBN is too important to play politics with…..

You may have noticed in the Press the spat between Malcolm Turnbull and the ABC’s Technology correspondent Nick Ross. The source of this friction is that Ross has exposed the coalition’s broadband policy as the sham it is.
http://www.abc.net.au/technology/articles/2013/02/21/3695094.htm

In this article, he goes in to a huge amount of detail comparing what is currently planned and what the coalition says it wants. Frankly, Ross has nailed Turnbull well and truly and Turnbull does not like it one little bit.  I suggest this is because Turnbull knows he (Ross) is right (Turnbull is after all one of the country’s foremost technology executives, and would understand the technology arguments very well), and he has been exposed as being a hypocrite on these issues. We all know Turnbull has gone along with Abbott’s recidivist policies presumably waiting for him to self-implode in the hope that LCP party room will turn to him, but this policy stance he is advocating is frankly irresponsible.

For any of you in doubt about this, look at my previous blog on this where CSIRO sets outs in dispassionate, objective fashion how important an advanced broadband capability will be for the future economic well-being of Australia, particularly in the light of our appalling non farming/mining productivity performance.

Those of you who read this blog regularly, will realise I am generally a fan of Malcolm Turnbull. In fact I think he is the best person to lead this country into the future. But he is dead, dead wrong on this. One of the things I admire about him is his willingness to analyse things on their merits and not get too tied up in Abbott’s high ideological approach to policy. Does this prove me wrong? I very much hope not. We can only hope that when they come to power, they will quietly shelve this stupid policy.

The coming together of two visionary ideas…..

As regular readers of this blog will realise, I am a great admirer of the Federal Government’s NBN policy – one of the most visionary policies I believe from the Federal Government in recent memory and one which has the potential to greatly change the way we operate as a society for the better.

Some of you also may not realise that I am “an old Asia hand” ie someone who has lived and worked in Asia for almost a decade in my career, so I was delighted to see the Government initially commissioning their “Asia and Australia in the 21st century” White Paper, and releasing it so competently over the weekend. Having now read it thoroughly, I think the authors have done a great job, and deserve due consideration on both sides of politics, as well as in academia and the media.

Imagine my horror today, when listening to the ABC at lunchtime, when the government has allowed themselves to be marginalised by the vested interests on this issue, particularly on their commitment to Asian languages and the line from the opposition “it means nothing without extra funding”.

This is a nonsense. The extra funding comes from the NBN. Sometimes I wonder whether the Government even realises what a revolution they have started in this area.  They certainly did not explain it as they should, something they also have  a habit of doing in other areas of policy.

It started off this morning in “The Age” with one Professor Adam Chen suggesting the commitment to Asian languages “will cost billions”. This was followed up during the morning by the usual procession of vested interests with their hands out (of which as usual the Teachers Unions are the most vocal with their baseless breast beating about class sizes echoed by the Federal Opposition).

Education is the sector, along with Health, which will be most profoundly affected by the NBN. In 10 years’ time, when the NBN will be fully implemented, education will be profoundly changed.  Teaching at universities will be largely done online, when the most important things  for them will not be the size of their campus, but the quality of their teaching and the prestige of their Brand. The NBN will provide virtually unlimited capacity to teach. Rather than a university lecturer being limited to the student numbers dictated by the size of the lecture theatre, it will be restricted by the size of the demand as these services will be delivered via a limitless capacity on the internet.

As with universities, the same will apply to schools. An excellent teacher of Mandarin, rather than being restricted to a classroom, will be able to take regular classes with unlimited capacity via a very fast broadband. It will revolutionize schools, and greatly improve teaching standards to all sectors of society in all subject areas.

It is possible the Federal Labor Government would prefer to take “stick” from the Opposition, than to have to explain this fact to their constituency in the Union movement, most of whom do not appear to understand this profound change (along with most of the Press). Nevertheless, it is coming down the track, and will greatly expand the policy options for government in all sort of areas, not least Education.

In my view, it will be a revolution even more profound than the internet itself.

The historic Telco reform…

The announcement this morning of the formalisation of the separation of the wholesale and retail arms of Telstra is a momentious and very admirable micro-economic reform. After the government hands over the $12 billion in compensation to Telstra shareholders, we will have for the first time, all telcos in this country competing on a level playing field. This ranks with the tearing down of the tariff walls in the 1980’s, the deregulation of the banks, the reform of the labour and financial markets, as major economic reforms. Indeed, it may rank in the next 30 years as more important than any of them, but has been a government reform which has been unbelievably badly sold.

The fully connected NBN network has the potential to have as great an effect on the Australian economy and Australian society as the coming of the internet in the 1990’s. Once the society is fully connected to super-fast internet (only certain Scandinavian countries and South Korea has this now), it will produce a flowering of innovation not only in current enterprises but also will see totally new business models emerge. How about an Australia Google, Amazon or Ebay? They will not be the same – no-one knows what they will be – but we have the potential for this to happen because we will have the infrastructure which very few in the OECD will have (partly because they can not now afford it).

This is an historic opportunity. With Australia’s record as being one of the most technology savvy populations in the world, this is an unprecedented opportunity. The government needs to explain this, and get people excited about it. With our productivity performance going backwards over the last five years, this is an unparralled opportunity to reverse this.

Signs of Recovery

Resp0nse to Economist article “Signs of Recovery” 21 July 2010

Yes, advertising expenditures have been relatively durable GFD, but I think the far more interesting question for such an august journal as the Economist to contemplate is what the future of the current advertising agency model is. Alternative media is changing so quickly, and consumer taste with it, that the mass media, television driven model of the past in my view is unsustainable. The question for the Avertising industry, and traditional media if it comes to that, is what if anything will replace it. There is not currently an obvious answer to this question, but what we can say is that old style ad agencies and media companies have not yet worked out how to use the new social media outlets, and are a long way from integrating them fully into their overall media mix. Perhaps the finger is still fully in the dyke as they work out how to make money from them. It deserves an Economist think piece for which they are so famous.