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The Tangled Web of

Broadband PolicyProfessor Joshua GansUniversity of Melbourne

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Broadband penetration

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The emotive graph

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Risks and rewards

• Being behind we risk ...

• restricted

communications

• limited access toknowledge

• lost opportunitiesfor applications

• Being behind we get ...

• to see what

applications aredeveloped

• match needs toapplications

• to buy equipmentat establishedlower costs

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The Dream• e-Health

• e-Education

• Video conferencing

• Video downloads

• Games

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The Vision

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The Reality

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Internet paths

NodeLocal Sites

O/s Sites

Exchange

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Just not enough

• No guarantee of fast uploads

•Bottlenecks across the pacific

• Download limits exhausted in seconds

• Will the price be right?

• Do people have the computingtechnology to benefit?

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The Reality• e-Health

• e-Education

• Video conferencing

• Video downloads

• Games

Is this a good use of public money?

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What we need

• Applications

• Global connectivity

• Subsidies

• Regulation

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e-Health• What would it take to

avoid GP waitingrooms?

• Need to uploadpictures

• GP needs to beassured of liability

• Legal and health

insurance systemsneed development

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Low cost backhaul

• Just two providers

• High US interconnect rates

• This is why we have download limits

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Subsidies

• Regional areas will always be tooexpensive to get the latest

communications infrastructure

• Need to subsidise connections

• This has worked in basic broadband

• Better than a USO that entrenchescross-subsidies

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RegulationAvoid this issue by giving it all to Telstra

... but the cost is large

... where we have competition (e.g.,mobiles) the quality is better and pricesare lower.

If there is going to be diversity inproviders, regulation is needed at theexchange

... this includes the public partnerships.

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The priorities

• Public money for overseas backhaul

• Ensure high speed connections in

regional centres• Find regulatory solutions

• Public money for innovations inbroadband applications

Don’t subsidise bricks to get a 

hospital or school 

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The Local Solution

• The best way to ensure that the marketcan take care of itself and Australia isn’t

left behind is to think local• Broadband is a local issue (much like

garbage collection)• Specific technologies

• Different demographics

• Social networks

• Potential for competition