National Broadband Initiative

(Note: This is a reprint from our May 2009 Newsletter)

So, private industry cannot deliver the broadband network, and thus the Government has decided to go it alone and build a fibre to the home/business network by 2018. Putting aside the question of whether or not this is a good idea, what is fibre to the home/business likely to mean?

Fibre to the home/business, with its substantial increase in bandwidth, is probably going to give us “convergence”, which is a term to describe the process where once distinct streams of media and communications collapse into one single delivery mechanism. Huh? Things you once saw as separate, like the television and the telephone are going to start converging into the same delivery mechanism – the Internet.

If it were to happen as the futurists would see it, by say 2020 a lot of people aren't going to have a fixed line phone service anymore (that trend is actually already starting with “unbundled local loop” services available for those that want an ADSL service, but not a traditional copper phone line). We will still probably have something in our house that looks and acts like a phone, but it will work purely with the Internet. Likewise for television, we may see “cable” channels distributed over the Internet using a subscription model (no doubt with the obligatory amount of piracy going on as well).

In terms of business, high quality point to point video conferencing will become a reality that everyone can take advantage of, and this ability to video conference combined with redirecting office calls using your Voice Over IP (VOIP) phone, and get high speed access to the office network from just about anywhere is likely to hasten the adoption of telecommuting. Many more businesses, particularly in knowledge industries, will probably move to the model of having a larger proportion of their work force offsite, as a way of providing a better work/home balance, reducing the carbon impact of businesses (by removing employee commutes, and power hungry building environmentals) and reducing the substantial costs of commercial premises. Finally, customers having access to such large amounts of bandwidth will also make new types of services, for example video consults, a viable reality.

Many of these ideas aren't new – VOIP has been with us for some time, Skype has brought video conferencing to the masses, and larger enterprises (like the big 5 accounting firms and others) have been doing hot desking (where employees don't have a permanent desk – they log into a desk for the day) for many years with mixed results. However, the commodity-like nature and accessibility of these new services will likely have some substantial impacts on the way we work.

Before some of these benefits can be realised there are a number of technical, and even a few human issues that need to be resolved.

In terms of the technical issues the shift can perhaps be summed up by considering two areas: reliability and security.

Many Small Medium Enterprises (SME) do not have infrastructure that is sufficiently well engineered to provide the sort of reliability required for these new services. Issues such as Quality-of-Service (essential for good VOIP and Video Conferencing) capable networking equipment, communications systems that can survive mundane issues like power outages without dropping service (how do you dial triple 0 if all your phones fail when the power goes out), well provisioned equipment capable of dealing with increased load, adequate disaster recovery processes to get the business back in action in the event of a failure, and access to the necessary skills in a timely manner.

In terms of security SMEs are even less well prepared. While most understand the need for anti-virus software, and a few understand the importance of devices such as firewalls, in a more connected world most have little or no experience in the important discipline of risk management (at least as it pertains to IT Security). This will leave the overly cautious unable to capitalise on opportunities, while the overly optimistic lay their organisations open to damage, and their customers' information, open to disclosure.

Another interesting challenge is coming to terms with how to ensure that staff have the necessary amount of human contact to keep them happy and working efficiently. While some of the new technologies replace face to face contact (like video conferencing) all technologies tend to contextualise communications, with most interactions becoming more formal – that is you have a conference to discuss a proposal, find a way past an issue, but those informal water cooler chats might disappear. Depending on an organisation's culture, the boss may not think this is a bad thing..., but in all seriousness, it is often these informal discussions that provide the greatest insights, innovations and changes for organisations.

There is one final issue to touch on – the cost of downloads. As you may know, most ISPs provide a “free” allowance of data, and when that volume is exceeded they either throttle the connection, or charge an additional fee for extra data used. The genesis of this is in the old model of how Australia paid for the under sea cable that connected Australia to the Internet via the United States. The owner of this infrastructure levied a tariff on data coming to Australia crossing this infrastructure, which ISPs passed onto customers.

While some ISPs have “unmetered sites”, where your bandwidth does not count against your allowance (such as Internode with the ABC website), many have fairly course-grained models where they just charge for anything that doesn't originate on their own network.

For the National Broadband Initiative to provide the best economic benefit all ISPs will need to change these billing arrangements so that domestic traffic is free, or at least substantially cheaper than overseas data – otherwise things like high quality video conferencing will come with monthly Internet bills that will probably rival 1980s style STD phone call charges pretty quickly.

It is often said, when talking about how technology will impact society that “we always over estimate the impact in the short term, and under estimate the impact in the long term”. Nevertheless, we hope you find these thoughts useful in considering how the National Broadband Initiative might affect your organisation.