Broadband. impact and challenges: realising the benefits from the digital economy. digital Productivity and services Flagship

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1 digital Productivity and services Flagship Broadband impact and challenges: realising the benefits from the digital economy IS-BroadbandRpts _BroadbandImpactv02.indd 1 4/12/2013 3:43:27 PM

2 The Australian Centre for Broadband Innovation CSIRO Digital Productivity and Services Flagship Citation Campbell, S., Mason, C. M., Griffith, C., Dane, S. K., Reeson, A., O Brien-McInally, B. A., Kimber, J. D. (2013) Broadband Impact and Challenges: Realising the benefits from the digital economy, Australian Centre for Broadband Innovation, CSIRO EP Copyright and disclaimer 2013 CSIRO. To the extent permitted by law, all rights are reserved and no part of this publication covered by copyright may be reproduced or copied in any form or by any means except with the written permission of CSIRO. Important disclaimer CSIRO advises that the information contained in this publication comprises general statements based on scientific research. The reader is advised and needs to be aware that such information may be incomplete or unable to be used in any specific situation. No reliance or actions must therefore be made on that information without seeking prior expert professional, scientific and technical advice. To the extent permitted by law, CSIRO (including its employees and consultants) excludes all liability to any person for any consequences, including but not limited to all losses, damages, costs, expenses and any other compensation, arising directly or indirectly from using this publication (in part or in whole) and any information or material contained in it. B Broadband impact and challenges: realising the benefits from the digital economy IS-BroadbandRpts _BroadbandImpactv02.indd 2 4/12/2013 3:43:27 PM

3 Contents Foreword 3 Acknowledgements 4 Executive summary 5 1. What we know and have discovered 6 2. What do we need to do next? 9 3. Future directions 11 Appendices 12 Appendix A: About Next Generation Broadband 12 Appendix B: ACBI & CSIRO 13 Glossary 14 References 14 Australian Centre for Broadband Innovation, CSIRO Digital Productivity and Services Flagship 1 IS-BroadbandRpts _BroadbandImpactv02.indd 1 4/12/2013 3:43:27 PM

4 2 Broadband impact and challenges: realising the benefits from the digital economy IS-BroadbandRpts _BroadbandImpactv02.indd 2 4/12/2013 3:43:28 PM

5 Foreword Next generation broadband infrastructure includes the cables, transmitters, satellites and other equipment that will give people better access to new and transformational digital services over coming years. Many advanced economies are implementing or contemplating the rollout of this infrastructure, with Australia drawing global attention due the scale and scope of its investment. There has been a correspondingly strong interest in what the potential benefits might be for Australia. As with the introduction of other technologies, such as electricity, that enable many and varied uses, it is difficult to accurately determine these benefits. Furthermore, these benefits are mediated by a complex interplay between people, organisations, markets and social structures. This report, commissioned by the Australian Centre for Broadband Innovation, provides fresh insights and evidence to enable Australians to better understand the impact and opportunities offered by next generation broadband. The report draws together the research capabilities of CSIRO, and insights and contributions from partner organisations, as well as industry, community and government stakeholders. A key focus of this research is to understand the behaviour and capabilities of people and organisations in Australia to adopt and gain benefit from broadband and digital services. It is these capabilities that will perhaps determine the overall level of benefit for Australia in terms of innovation, improvement in productivity and development of new markets. Next generation broadband will also create challenges for Australia, accelerating disruption to businesses, jobs and services. Timely action is required if Australia is to realise these new opportunities and mitigate the threats. Another focus of this research is to understand the benefits that accrue to people and businesses from the adoption and greater use of broadband and digital services. There is evidence that interventions to encourage the greater uptake of such services make good economic sense, as well as provide tangible benefits for people at risk from the digital divide. This report also signals a new direction for CSIRO, understanding the social and economic dynamics of the digital economy, as part of the wider research portfolio of the Digital Productivity and Services Flagship. It draws its strength from a multidisciplinary set of skills, from economics to psychology, and seeks to contribute practical knowledge and advice for all Australians. Colin Griffith Director, Australian Centre for Broadband Innovation Australian Centre for Broadband Innovation, CSIRO Digital Productivity and Services Flagship 3 IS-BroadbandRpts _BroadbandImpactv02.indd 3 4/12/2013 3:43:29 PM

6 Acknowledgements The Australian Centre for Broadband Innovation (ACBI) is a collaborative research initiative led by CSIRO in partnership with NICTA, Australia s two leading Information and Communications Technology (ICT) research organisations. ACBI is part of the CSIRO Digital Productivity and Services Flagship and draws on the broad and diverse research capabilities of CSIRO and NICTA to demonstrate, develop and evaluate innovative new services and applications that are enabled by next generation broadband networks. The authors would like to thank the following for their advice and contribution to the associated research projects including: The people and organisations who provided their time and input for the stakeholder interviews; Residents of Coffs Harbour and Port Macquarie that participated in the survey on household internet use; Small business ownersfrom Coffs Harbour who took part in interviews; Stakeholders from Coffs Harbour that advised and promoted the surveys including the Regional Initiative for Social Innovation and Research at Southern Cross University, Coffs Harbour Council, Mid-North Coast Regional Development Australia; CSIRO Government Services Theme, Digital Productivity & Services Flagship, CSIRO Science into Society Group and CSIRO Information Sciences Communications Group. 4 Broadband impact and challenges: realising the benefits from the digital economy IS-BroadbandRpts _BroadbandImpactv02.indd 4 4/12/2013 3:43:29 PM

7 Executive summary Australia has embarked on a massive nationwide investment in next generation broadband (NGB) infrastructure. NGB and the digital services it enables are expected to have a profound and positive impact on the Australian way of life. However, simply connecting premises to NGB does not guarantee Australia is prepared to achieve the best possible outcomes. What we do next is vital. This report provides a timely guide for businesses and governments to understand the impacts and opportunities NGB presents to Australia s economy and society. Surveys of the community, businesses and thought leaders are complemented with detailed analyses of existing data sources and peer-reviewed economic and social research. Strategic insight This report highlights key findings from four major research activities: Interviews conducted with thought leaders and stakeholders from across Australian society, exploring opportunities and risks associated with NGB. 1 A comprehensive survey of household internet use, examining both enablers and inhibitors of digital engagement and links between internet use and broader life experiences. 2 Economic analysis of the business outcomes associated with information and communications technology (ICT) investment and online engagement, drawing on Australian Bureau of Statistics (ABS) data and other international peer-reviewed analyses of economic impacts. 3 Interviews exploring small business owners experiences with internet applications and the barriers and enablers of greater digital engagement. 4 In combination, this research provides real insights into the economic and social benefits of promoting greater use of broadband and associated digital services. It also provides practical information on how to influence and support initiatives to grow our engagement with the digital economy. Businesses Householders A clearer understanding of the impacts and challenges of broadband in Australia will inform the development and delivery of beneficial digital services and will increase opportunities for Australia s social development, innovation and economic growth. Australian Centre for Broadband Innovation, CSIRO Digital Productivity and Services Flagship 5 IS-BroadbandRpts _BroadbandImpactv02.indd 5 4/12/2013 3:43:31 PM

8 1. What we know and have discovered 1.1 What will change with next generation broadband There is strong consensus among experts that Australia s investment in NGB offers significant opportunities for Australian businesses and householders, which encompass: a. improved service delivery, particularly in the health, education and government sectors, b. enhanced communication and collaboration across distance, and, c. revitalisation of regional Australia through access to specialised expertise and new markets. 1 Nevertheless, alongside NGB opportunities there are also risks that need to be appropriately managed. The adoption of NGB-enabled services will drive major changes in the way people live, work and interact. While some people and organisations may have the capacity to adapt and realise new opportunities, some may not. By understanding what to do and how best to maximise opportunities and tackle threats, appropriate support can be developed and deployed. Therefore, identifying what will change for householders, businesses, communities and government with NGB is important. For householders, access to NGB has the potential to improve an individual s standard of living, sense of inclusion and wellbeing, as well as the way they work and how they engage with communities, services and information. 1,2 However, internet use mirrors existing patterns of social disadvantage. Thus, as broadband increasingly becomes the preferred channel for delivering and accessing services, existing inequalities may be worsened and disadvantaged groups may fall even further behind. 1, 2 For businesses, NGB offers opportunities to improve service delivery, reduce the cost of doing business and access markets beyond their traditional reach. But NGB also has the potential to increase exposure to international competition and undermine previously successful business models. 1,3,4 As Australians increasingly use the internet, businesses need to engage their customers via online channels or risk losing sales to online competitors.. 3,4 The less engaged business owner who lacks ICT capability or the resources to acquire this capacity, and who fails to grasp the relative advantages NGB technologies offer, could be more at risk. 3 For communities, NGB opens up many benefits such as more flexible and effective delivery of government, health and social services, as well as relieving transport congestion through increased teleworking. NGB can circumvent geographic barriers to services, markets and specialised expertise for regional and rural communities. 1 However, there is uncertainty about the impact that different types of broadband connection, such as satellite or terrestrial wireless, will have on access to services. 1 For government, NGB offers a means to meet increasing demand for services while reducing costs, since online service delivery is substantially less expensive than traditional service delivery channels. 1 By evaluating new ways of working and living using NGB, agencies will be able to provide individualised and tailored support. However, the potential cost savings of online applications will only be realised if high uptake of these services by the Australian population is achieved and other delivery channels rationalised. Although high-level predictions can be made about the ways NGB can positively transform Australian lives and businesses, exactly how these opportunities and risks will play out is very difficult to predict. How might broadband start to transform industries? What sort of opportunities and constraints might it provide for different population groups in different locations? I don t think the broadband story is the same narrative across the country. I think it will be a very multi-variant narrative and it will be very interesting to explore that. Dr Lin Hatfield-Dodds, Chair, Australian Social Inclusion Board 1 While the exact nature of change and potential benefits arising from NGB may be hard to determine, it is critical to understand and influence the capabilities of people and organisations to respond to such change. CSIRO s research regarding NGB and digital services is focused on building a solid evidence base regarding, not just the use of the Internet, but also the behaviour of, and influences on, people and organisations. 6 Broadband impact and challenges: realising the benefits from the digital economy IS-BroadbandRpts _BroadbandImpactv02.indd 6 4/12/2013 3:43:33 PM

9 1.2 How and why people use the internet To understand how and why Australian householders currently use the internet, the most comprehensive survey of its kind, to date, was conducted. 2 Importantly, data from both users and non-users of the internet were collected for comparison. The findings suggest that internet use has a range of impacts on people s lives. 2 A large majority of respondents reported that the internet had improved their knowledge and skills, and more than half reported that it had improved aspects of their social life and engagement in society. 2 More frequent and diverse use of the internet was associated with self-reported access to timelier health treatment and information, and greater access to knowledge and skills-building activities 2 (see Figure 1). The survey also reveals how patterns of online behaviour vary across sectors of the community. Consistent with overseas trends, the majority of participants 65 years of age and over were online; although overall they used the internet less frequently and for fewer activities compared with those who were younger. This was particularly the case for older people living alone. 2 Internet users with a lower standard of living were just as active online as those with a higher standard of living, but tended to access social networking sites more often than those financially better off, who instead were higher users of . In general, people with a lower standard of living, irrespective of their age, were less likely to have hardware such Figure 1 The relationship between internet behaviour and building knowledge and skills as desktop computers, but were just as likely to have a smartphone. 2 Thus, different online communication strategies are likely to be effective for certain groups of householders. Among users of the internet, going online is now preferred over traditional channels for activities such as seeking travel information and paying bills. However, most householders in the regional communities surveyed still rely on more conventional avenues (such as phone or face-to-face contact) for job searching, and to access their local council and other government services. 2 According to data from the Australian Bureau of Statistics (ABS, 2011), about 20% of Australians do not use the internet. 5 The householder survey provided a deeper understanding of why some people choose not to engage with the internet. 2 Lack of skills and confidence in using the internet was identified as the main inhibitor to online engagement for both the majority of older (65+ years) and younger non-users. 2 Even among nonusers on low household incomes ($30,000pa or less), lack of skills was selected as a main reason by the majority (62.5%), whereas affordability was selected by less than a third. 2 There appears to be a complex interplay between socioeconomic characteristics, motivational factors, internet use and social outcomes driving how the internet is used in daily life in Australia. 1.3 Business use of the internet In contrast to householders, Australian businesses do not appear to be embracing the internet. High-level, informed stakeholders, representing a wide cross-section of industries and interest groups, are concerned that Australian businesses may miss out on important opportunities as a result of not engaging effectively with NGB. 1 Currently, barely half of Australian businesses have a web presence, with the uptake of web-based marketing and business systems particularly low among small businesses. 3 For those less connected to ICT developments, the benefits of NGB are not well understood. 2,4 Not all experiences in engaging with new online technologies are positive. 4 For example, some businesses found that by going online they ended up dealing with fruitless enquiries from overseas, or providing more quotes for poorer returns. 4 Australian Centre for Broadband Innovation, CSIRO Digital Productivity and Services Flagship 7 IS-BroadbandRpts _BroadbandImpactv02.indd 7 4/12/2013 3:43:34 PM

10 To make a decision about the NBN we need to be aware of what the options are and what steps we need to take to get connected. We d like our internet service provider to tell us what the new opportunities are as opposed to us having to source that information we don t have a huge amount of time to sit around and think about what we should be doing, we need to know what we need to do. Hattie Watson, Business Manager To better understand the impact of internet use in the business sector, we analysed ABS data (the most comprehensive source of longitudinal data on Australian businesses) to examine how businesses had fared with online technologies in recent years. 3 Our statistical modelling indicated that economic benefits arising from the use of broadband and investment in ICT were not always apparent in the short term, but over five years, businesses with a web presence and that invested more in IT, realised greater profits than those that did not. Nevertheless, some specific types of online activity (e.g. online purchasing) were not associated with improved business outcomes. 3 Better data are needed to unravel the complex relationship between online engagement and business performance. However, what these analyses do show is that businesses do not automatically become more profitable when they go online ; rather, how businesses engage with ICT including broadband is critical in determining what outcomes are achieved from it. 3 For many Australian businesses there is limited time to effectively research, understand and implement internet-enabled technologies. 4 Our interviews with small business owners reveal several barriers to online engagement including: a. not understanding the benefits of online applications, b. lacking the time or financial resources to implement and manage online applications, c. a perception that current business practices are adequate, and, d. lack of access to trusted ICT suppliers or funds for outsourcing ICT skills. 4 Similar factors have been seen to influence the low levels of business use of the internet in other research. 3,4 Although training and information can address some of these barriers, current initiatives aimed at providing this support are not seen to be effective. 1 This perception is supported by our Profitability (2007 = 100%) 170% 160% 150% 140% 130% 120% 110% 100% 90% 80% IT investment (2007) Others Figure 2: Profitability changes over five years, for businesses which reported increased IT investment in 2007 (red line) compared to those which did not (blue line). finding that business owners at one of the first Australian sites with NGB were either unaware of, or not able to find time to participate in the free digital training workshops offered locally. 4 A number of reports have identified sub-sectors of small and medium business that are effectively using broadband and ICT services to achieve a higher level of growth and profitability. Some of these companies are expanding into new markets, either domestically or internationally. However, on the whole, Australian businesses have been slow to engage with NGB and slow to realise the opportunities to transform their business processes. 1 generally Australian industries are relatively poor at seeing opportunities for, and taking advantage of digital economytype possibilities. So I think there needs to be quite a significant improvement, in terms of leadership, management, and culture to start to see that change [there needs to be] an increasing awareness of the importance of consideration of broadbandrelated issues, in terms of the future success of the organisation. Ian Birks, CEO, Australian Services Roundtable. 1 The impact of such a disruptive change could be a threat to the sustainability of many businesses. Some industry sectors will be affected to a greater extent and more rapidly, while in other sectors the effect may be delayed. In the most affected industry sectors, the consequences of the lack of business capacity to innovate and manage change will be most pronounced. 8 Broadband impact and challenges: realising the benefits from the digital economy IS-BroadbandRpts _BroadbandImpactv02.indd 8 4/12/2013 3:43:35 PM

11 2. What do we need to do next? 2.1 Introduction NGB can be seen as a platform on which a complex, collaborative interaction between people, organisations, services and ICT will drive innovation and help Australia realise many benefits. However, experts are concerned that Australian businesses, government organisations, and individuals are not currently well-prepared to take advantage of the opportunities offered by NGB. 1 They cite under-utilisation of existing broadband capacity and low uptake of online government services as signs that Australia is not ready to prosper and compete in an increasingly digital world. 1 They note that those lacking ICT skills, lowincome households, communities in remote areas and small businesses may not fully benefit from important opportunities if unable to access or use NGB-enabled services. 1 Ironically, it seems that those groups with the most to benefit from NGB are also at greatest risk of being left behind. How should these challenges be addressed? 2.2 Delivering strategic leadership and relevant information Government is seen to have a key role in driving initiatives and interventions that manage the opportunities and risks of NGB. 1 One way government can stimulate effective change and encourage innovations is by becoming a leadingedge user of the new technology. 1 Concurrently, government needs to provide strategic direction and better information to allow others to become part of this change. A national approach to NGB opportunities requires coordination and involvement from all business and community sectors. There is a strong message from industry stakeholders that the uncertainty around the investment in NGB infrastructure has distracted the attention of many businesses from exploring NGB opportunities. More detailed information, analysis and strategic thinking is needed to inform decision-making and ensure preparedness for change. This will provide a better understanding of the impact and drivers for different industry sectors. In turn, this will enable strategic reviews of business processes, updates of educational curriculum, delivery of targeted incentives and deployment of training programs. 1 For initiatives and interventions to be effective, we need to understand how NGB is likely to play out in the Australian context. This involves analysing the opportunities that NGB creates, where disruption will be the greatest and what emerging factors may inhibit individuals and businesses from maximising NGB opportunities. Stakeholders seek more information to understand how the costs and benefits of technologies facilitated by NGB will affect different sectors, locations and different groups. 1 Without this knowledge we may fail to realise what s possible and how far we can go with NGB. 1 There is also a concern that businesses, government agencies and community organisations are not investing enough in innovation and building their capacity to manage change. Given that Australia is making a significant investment in NGB infrastructure, it could be argued that Australian businesses, government agencies and community organisations need to make a comparable investment in innovation and adoption of new NGB-enabled services over the coming decade. 1...there really is a need to have a whole range of industry sectors think about... the implications of a step change in broadband for their businesses. Michael Cosgrave, Group General Manager, Communications, Australian Competition and Consumer Commission. 1 Active leadership is required at all levels of society and across different organisations to ensure a timely response to the opportunities and challenges of NGB services. Disruptive change can be challenging for many people and organisations, and it is easy to defer action. However the impact of NGB and the digital economy will continue to accelerate and failure to respond will threaten jobs, businesses and the sustainability of government services. Australian Centre for Broadband Innovation, CSIRO Digital Productivity and Services Flagship 9 IS-BroadbandRpts _BroadbandImpactv02.indd 9 4/12/2013 3:43:36 PM

12 2.3 Supporting everyone to access NGB There are good economic and social reasons to ensure that all individuals or businesses are equipped to exploit broadband-enabled services. Even if Australia s NGB infrastructure is accessible from every premises in the country, this does not ensure universal adoption and participation in the digital economy. If population sub-groups are unable to engage online due to lack of confidence, lack of skills, or lack of awareness of benefits, then many opportunities for social development, innovation and economic growth may not be fully realised. Quantifying the economic benefits of getting more people online is a challenging task (and the subject of ongoing research). Initial estimates suggest that the benefits accruing to households from internet access are in the order of tens of billions of dollars per year; extending access to those currently missing out would add billions more, while also enhancing equity. 1,3 Although affordability is a critical consideration for equal access, reducing financial barriers is not likely to address such inequalities unless effort is also directed towards providing skills and support to use the internet in meaningful ways. 2 The challenge for governments, education and training providers, businesses and peak industry bodies is determining how to design effective means of engaging with and training people; particularly individuals and business owners who lack the confidence and skills to use NGB and who aren t aware of the benefits they might experience from NGB services. Evidence suggests more strategic training initiatives are needed to support these sub-groups. 1,2 2.4 Rethinking skills training and capability building Already many national and local initiatives are funded to engage with and support businesses and householders as NGB is rolled out across the country. However, the low levels of internet engagement by Australian businesses highlight the importance of understanding what determines whether businesses use NGB effectively. 3 Because every business is different with regard to operations, resources and markets, what represents the best use of NGB will vary. 1,3,4 Industry groups that currently influence business owners are well placed to inform and affect their response to NGB. Interviews with small business owners reveal that industry peers, technology service providers and industry organisations can be central enablers of digital engagement. 4 To ensure this support is effective, it needs to be delivered in a more strategic way than has been the case to date, including more contextspecific information, better evaluation and more collaboration and knowledge sharing. 1,4...unless there are substantial shifts in our education system, then I don t think we will fully open up the opportunities for Australians to be leading producers and innovators over customers and consumers. I think this shift requires a major rethink in terms of how and when students learn about technology in our education system. Dr Tanya Notley, Lecturer in Communication, University of Western Sydney 1 10 Broadband impact and challenges: realising the benefits from the digital economy IS-BroadbandRpts _BroadbandImpactv02.indd 10 4/12/2013 3:43:36 PM

13 3. Future directions 3.1 Ongoing research Ultimately, CSIRO seeks to ensure that Australia s NGB infrastructure achieves the best possible social and economic outcomes. We will be progressing this goal through the following activities: At home with NGB: By returning to the communities that we have surveyed, we will be able to examine how an individual s internet use, sense of inclusion and well-being changes over time and to what degree the provision of NGB contributes to these effects. Building this longitudinal database will also allow us to monitor the unfolding nature of the digital divide within sectors of the community and explore the attitudinal and behavioural influences on those that are under-utilising digital services enabled by NGB. Doing business with NGB: To inform investment decisions, government and businesses need to understand the relevant costs and benefits. One task will be to estimate the economic impacts associated with getting more Australians online, more often. Research that explores the social and economic impacts of teleworking from home or local smart work hubs will help employees, employers and the community to make the most of these new ways of working. We will also be monitoring the effect of digital training initiatives and the outcomes for businesses in different sectors as they implement new online applications. Making connections: Many Australians are already accessing NGB through a range of channels, including fibre connections to the home, connections through health service providers and community hubs. Research that explores how internet use, and the outcomes achieved from NGB vary according to the means through which it is accessed, can inform policy initiatives designed to ensure that all Australians experience the benefits of NGB. Overall, our continuing research efforts aim to provide social and economic insights and strengthen initiatives and policies to ensure that Australian householders and businesses can flourish in an increasingly digital and global society. 3.2 Closing remarks The NGB network could be the most important infrastructure built in Australia this century. By enhancing lives, and livelihoods, NGB will secure our technological future in a world that s becoming more connected, accessible and innovative. The value of NGB to households, businesses, the economy and for government service delivery is significant. Yet realising this value and developing it into tangible positive outcomes will not be without challenges. As the four research projects here highlight, the current approaches for communicating the benefits of NGB, ensuring it is well utilised, stimulating investment in ICT, and promoting innovation and collaboration via NGB need to improve. To ensure all Australians benefit from NGB, its delivery needs to address changes in user behaviours, business engagement, and unevenly distributed social and economic impacts. As Australia s national science agency, CSIRO seeks to ensure that Australia s NGB infrastructure achieves the best possible outcomes. We are committed to delivering research that will support foresighting and strategic decision-making in this realm. At the same time, we will continue to build connections with other researchers, industry representatives, government and non-government organisations to promote strategic conversations that examine how NGB will play out in Australia. Australian Centre for Broadband Innovation, CSIRO Digital Productivity and Services Flagship 11 IS-BroadbandRpts _BroadbandImpactv02.indd 11 4/12/2013 3:43:36 PM

14 Appendices Appendix A: About Next Generation Broadband The term Next Generation Broadband (NGB) refers to Internet Protocol (IP) data telecommunications systems that have the following standard features: Scalable bandwidth generally capable of at least 25Mbps Symmetric capability meaning the upstream bandwidth is close or equal to the downstream bandwidth; Support for different levels of quality for the transmission of services; Universal in reach to targeted customers (i.e. ubiquity of coverage). NGB typically involves the use of optic fibre networks that are scalable to multi-gigabit per second bandwidths. Other technologies can deliver NGB services although with limitations. For example, advanced DSL services on copper networks can deliver scalable bandwidths for short distances and are typically asymmetric, terrestrial wireless services are limited by the availability of spectrum and/or number of transmission towers; and satellite services suffer from delays for real-time two-way traffic (i.e. latency). Other characteristics that are becoming important for NGB are: Use of advanced software management tools to help standardise and simplify the way network services can be activated and changed. This will support greater flexibility and innovation in the way networks are managed, with the network infrastructure becoming increasingly virtualised similar to what has happened with computing and data centre infrastructure. Increasing connection to non-premise locations such as traffic lights, smart grid infrastructure and sensor networks. NGB will help enable the connection to the internetof-things, where potentially billions of things located both outside and inside premises are networked. In Australia, while the National Broadband Network (NBN) may connect up to 8.5 million homes by 2021, it is expected that 145 million devices will be connected by 2017 (Cisco, 2013) The technical capability to support services from multiple service providers on common infrastructure. This capability is important as it allows for new forms of competition where regulatory authorities might separate out the role of network infrastructure provider from retail service provision (as done in Australia and Singapore) and also allow for competition between retail service providers to a customer over common infrastructure. Australia s National Broadband Network represents a NGB system. Other countries are developing their own version of a NGB system with a differing mixture of policy, investment and industry conditions. It is important to note that Australia s NGB system includes not only NBN Co s infrastructure but also the complementary networks and management systems from other telecommunications companies. It is this ecosystem of other networks and services run by other telecommunications companies that creates the broader end-to-end services for Australia s NGB. The NBN provides the enabling infrastructure foundation for these other telecommunications services, including those provided by mobile operators, to function effectively and grow in capacity to meet future customer needs. 12 Broadband impact and challenges: realising the benefits from the digital economy IS-BroadbandRpts _BroadbandImpactv02.indd 12 4/12/2013 3:43:36 PM

15 Appendix B: ACBI & CSIRO Australian Centre for Broadband Innovation The Australian Centre for Broadband Innovation (ACBI) provides unique opportunities to create innovative broadband-enabled services, demonstrate their use in real world situations and evaluate their potential commercial and social value. ACBI is a collaborative national research initiative which connects people and business to the benefits of game-changing services and applications enabled by NGB technologies. ACBI is supported by CSIRO in partnership with National ICT Australia (NICTA), Australia s two leading Information and Communications Technology (ICT) research organisations. ACBI draws on their broad and diverse research capabilities. Foundation funding was provided by the New South Wales Government with matching resources from CSIRO and NICTA. More recently, the Tasmanian Government has become a partner and ACBI is in the process of extending this support with other Australian governments. To support innovative new ways of using Australia s national broadband infrastructure, ACBI also has a formal collaboration agreement with the company building the national broadband network, NBN Co. CSIRO Digital Productivity & Services Flagship The Digital Productivity and Services Flagship is a A$40 million research initiative from CSIRO focussed on Australia s productivity challenge. Established in July 2012, the Flagship targets productivity improvements and growth in the digital economy through services innovation. By 2025 the flagship aims to create A$4 billion per annum in added value for the Australian economy by developing and delivering more efficient and innovative services that improve people s wellbeing and prosperity. The Flagship will follow three broad approaches to help businesses, industry and Government change the way services are created, delivered and consumed: Effectiveness and efficiency doing more with the resources we currently have Doing old things in new ways changing the way services are delivered Doing new things in ways we ve never thought of before changing what we do in the digital economy and changing the way people engage with technology Australian Centre for Broadband Innovation, CSIRO Digital Productivity and Services Flagship 13 IS-BroadbandRpts _BroadbandImpactv02.indd 13 4/12/2013 3:43:36 PM

16 Glossary References ABS Australian Bureau of Statistics ACBI Australian Centre for Broadband Innovation Digital Economy The digital economy is the global network of economic and social activities that are enabled by platforms such as the internet, mobile and sensor networks. ICT Information and Communications Technology NGB Next Generation Broadband CSIRO Commonwealth Scientific and Industrial Research Organisation 1. Mason, C. M., O Brien-McInally, B. A., and Dane, S. K. (2013). Opportunities, Risks and Interventions: Expert opinions on readying Australia for next generation broadband. CSIRO EP Dane, S. K., Mason, C. M., and O Brien-McInally, B. A. (2013). Household Internet Use in Australia: A study in regional communities. CSIRO EP Reeson, A. (2013) Next Generation Broadband and Australian Businesses. CSIRO EP Kimber J. D. and Mason, C. M. (2013) Internet Use by Small Business: An exploratory study in regional Australia. CSIRO, Australia, EP Australian Bureau of Statistics (2011). Household use of information technology, Australia Cat. No: nsf/mf/ Last accessed 02/10/ Broadband impact and challenges: realising the benefits from the digital economy IS-BroadbandRpts _BroadbandImpactv02.indd 14 4/12/2013 3:43:36 PM

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20 CSIRO Australia is founding its future on science and innovation. Its national science agency, CSIRO, is a powerhouse of ideas, technologies and skills for building prosperity, growth, health and sustainability. It serves governments, industries, business and communities across the nation. Contact us t e enquiries@csiro.au w For further information Australian Centre for Broadband Innovation Digital Productivity & Services Flagship Colin Griffith, Director t e colin.griffith@csiro.au w IS-BroadbandRpts _BroadbandImpactv02.indd 18 4/12/2013 3:43:37 PM