If you keep doing what you've always done in the midst of rapid change, you’ll lose your competitive advantage. You either change with the times or you get left behind. Which option makes the most sense for Australia?
I watched the debate last night on ABC Lateline and I have to say I felt so sorry for Malcolm Turnball. He was trying desperately to put up a valid argument. I have to say that if I am ever in need of a good mouth piece when I know that I am in the wrong then he will be my choice.
The simple fact of the matter is that the LNP option will cost the Australian Public more than the Labor Party NBN in the long run and makes absolutely no economic sense. Please see my blog a few weeks ago regarding the NBN on the cost differences.
Today I want to talk about capacity differences.
When we look at the NBN we have to look at our three change accelerators—processing power, storage, and bandwidth. The exponential advances that have been taking place in all three areas have reached unprecedented levels. You’ve likely heard the story about what happens when you double a cent every day. Tomorrow you’d have two cents; the next day, four, the next eight, and so on. By the end of the week, you would have a whopping sixty-four cents. By the end of week two, your cache of cash would have grown to $81.92. Not too exciting. But by day twenty-eight, just two weeks later, your pile of pennies would exceed $1 million; on day thirty it would be over $5 million. If this happened to be a thirty-one-day month, you would end the month with more than $10 million.
There is a distinct and very clear move to Cloud based solutions. We will no longer be storing information on localised servers as it is just not cost effective. When we consider the amount of data that is being collected and stored we are starting to realise that we are getting to the point where we will need to be able to access this data in a accelerated manner. We will not want to wait for the information.
Consider this: what was considered the world’s fastest super computer two years ago was recently disassembled because it was obsolete. And of course, as the power of those three change accelerators continue to increase dramatically and exponentially, their price continues to drop. So we can do much, much more with much, much less.
So what does that look like when we consider the rate of growth of broadband speed.
If we look at average speed in red - yes the coalition will cover average speed up until 2024 (10 years) but will be at full peak speed capacity by 2016 only (3 years) where as the maximum capacity of the Labor NBN will not be reached till around 2032 plus.
We also need to consider the following facts about where we are positioned in the world as far as internet speeds.
A study, which looked at more than 8.8 million Australian internet connections, found just 4.1% of Aussie internet users were downloading content at speeds greater than 10 megabits per second - the speed required to stream 720p high-definition movies.
Only 38% of Australians were connected at speeds higher than 4Mbps.
By comparison, 86% of net-connected South Koreans enjoyed speeds of over 4Mbps and more than half were connected at speeds higher than 10Mbps.
Australia's average peak internet connection speed of 22.8Mbps won the country 34th place, putting it sixth in the Asia Pacific region but well below the 54.1Mbps of world leader Hong Kong where users could download high-definition feature films in minutes rather than hours.
Find out more on this study here (Yes it is a News site believe it or not)
http://www.news.com.au/technology/state-of-the-internet-australia-web-speeds-ranking-dwindles-to-40th-place-globally/story-e6frfro0-1226560992748#ixzz2XwNUzAzm
This therefore negates the ridiculous argument from Turnball that a 1G internet connection would cost a household $20,000 per month when it becomes available. The fact is that by the time it is available there will be a range of infrastructure that is able support the connection and the appropriate levels of competition to drive the price down.
His other assertion that the NBN will just be a price gouger is another rediculous argument. Yes we will be paying additional cost but it will be for a superior service. Let's take the example of the Next G network with Telstra when it first came along. The pricing was in the order of $79 per month for very limited data at very low speeds we now have a 4G service for the same price.
Yes there will be people saying well there you go we don't need fiber we can do it with wireless. Please have a look at these following graphics taken from a NBN comparison site. http://howfastisthenbn.com.au/
So let's take the following example.
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