Australia Still Lagging In Broadband
The Age
Tuesday October 17, 2006
AUSTRALIA remains in 17th place among developed countries in the proportion of broadband internet users, as critics claim it risks falling behind if plans are not made to encourage more investment.
Telstra's outspoken public policy chief, Phil Burgess, also claimed yesterday that the country would remain behind in broadband internet penetration if it let "the regulator run the country". Figures from the Organisation for Economic Co-operation and Development show Australia was in 17th place for the second consecutive year, with 3.5 million subscribers. The country ranks behind Denmark, Britain and the US, but is five places ahead of New Zealand. However, Australia was one of eight countries to record the strongest per capita growth in subscribers as it added more than six users per 100 people, most of whom were connected by broadband over phone-line technology. The Federal Opposition said the findings showed the country was lagging other countries. "We are just treading water in a broadband backwater," said telecommunications spokesman Stephen Conroy. "The Government has no plan whatsoever to move us into the 21st century."But Communications Minister Helen Coonan said the growth in subscribers showed the Government's policies were encouraging broadband take-up. Mr Burgess said growth was easy when starting from a low base. The fact remained that most Australians did not have broadband. "The country has to decide whether they want to let the market work or let the regulator run the country," he said. "If they let the regulator run the country, my prediction is that there will be no new investment and Australia will continue to be at the bottom of the list." Telstra in August aborted plans to build a $4 billion high-speed broadband network after talks with the competition regulator collapsed because of disagreement over prices that rivals would be charged.A research director at telecommunications research firm Ovum, David Kennedy, agreed Australia risked falling behind if plans for rolling out broadband services were not forthcoming. "Our path in that regard is not at all clear," he said. " If that issue is not resolved in the next 12 months, then there is a danger we could fall behind." But he said that while Australia was not a global leader in broadband, it was not a laggard. "Our penetration rates have really risen over the last two years," he said. "We have got a reasonably solid base but we need to build on it."Telstra shares rose 1? to $3.64 yesterday, the first one-day rise in just over a week.KEY POINTS ? In 17th place in broadband users, and at risk of falling behind, say critics.? Labor says the country is "treading water in a broadband backwater".
© 2006 The Age