As worldwide internet access approaches 4 billion, the national average download speed makes for disappointing reading for Australians. In spite of the NBN’s continual protestations that we only need 25 Mbps across Australia, the growth in the internet of things, big data, e-health and innumerable other applications suggests that this is folly.
The underlying growth in global access and the continued pursuit of higher speeds and better quality (lower latency and more uptime) is all underpinned by a global acceptance that the world will look, trade and behave very differently over the coming years. The internet continues to enhance the way we work and live. A core function is its ability to help to address some of society’s pressing issues, such as health care and security for an ageing population.
Data provided by the Speedtest global index shows a current global average download speed of 46 Mbps. Australia is currently languishing in 53rd place with 31 Mbps, behind some economic powerhouses such as Trinidad and Tobago.
Learnings from the UK Model
In the UK they currently have an average speed of 52 Mbps. A recent government white paper set out to address increasing these speeds. This concluded further deregulation of the previously monopolistic model where the national carrier (British Telecom) owned all the pit and pipe infrastructure. Stage one in the UK’s journey opened up all the exchanges to invite more competition in the market. This led to a predominantly fibre to the node solution. This model is similar in performance and technical frailties to that of the NBN here in Australia. The recognition in the UK that this didn’t go far enough is some 18 years post phase one. Phase 2 will see access to pit and pipe infrastructure for more providers. Ultimately this will promote fibre to the premises, and significantly enhanced performance.
How Australia lags behind
In Australia we are effectively 10 years behind this cycle. With the data consumption curve being exponential, we need to catch up quickly. It is fair to say that the larger Telcos will find it more expensive to upgrade traditional infrastructure. This will be necessary to achieve the predicted speeds required to maintain our position in the global economy. The situation however, will provide opportunity for those market innovators who can either embrace new technology (see previous articles around 5G fixed wireless access). Alternatively, the right help from government and deregulation could effectively overlay old infrastructure with new fibre based systems to the home, at a fraction of the cost of the big boys.
The big issue for Australia is, can the government write policy which by its definition will undermine the NBN. This will potentially remove its ability to claw back the billions of dollars it has “invested” in order to solve the national digital issue. That remains to be seen.
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