Economist: Some businesses will lose from NBN
- 02 December, 2010 16:32
- Comments 3
Research by Access Economics for Macquarie Telecom has revealed more than 50 per cent of businesses surveyed expect the National Broadband Network to transform their business with many expecting more competition and uncertainty.
According to the report, around 540 businesses were surveyed across 17 industry groups. One-third of respondents were from professional, scientific and technical services companies while the rest ranged from transport and warehousing firms to media and finance businesses.
While 55 per cent of businesses said the NBN would definitely or likely “enhance their online capabilities”, the survey failed to ask how many expected business to suffer due to the Government’s rollout.
But Access Economics director, Ric Simes, said they were asked about the possible rise in competition.
“They were asked if they expected extra competitors and the answer was generally yes, they expected competition,” he said. “The survey doesn’t go beyond that… with more competitors there will also be more opportunities.
“It’s important that businesses are in a position to respond because their customers are going to be using the new technologies and looking for new suppliers and sources in the market.”
Macquarie Telecom chief executive, David Tudehope, was more direct and said the NBN would leave winners and losers in its wake.
“There are winners and losers in any industry and I guess it will come down to how fast people adapt to change and how fast they innovate,” he said. “Someone who didn’t compete with you in the small business market because it was too expensive to put a branch somewhere can suddenly compete with you and get customers all over Australia.
“We’ve got existing assets, some of which will have life beyond the NBN and some of which will be replaced by the NBN commercially…But realistically you can’t have this sort of change in investment in the country without the reality that some of your assets aren’t going to be of value going forward.”
Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.
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Comments
BB2
Whilst ignoring for a minute the 'Tyranny of distance' mantra espoused by NBN supporters, this article adeptly defines the real uncertainties faced by business in the future NBN paradigm, when buying everything is 'just a click away'.
Many small communities are supported (and their people employed by) by their local retailers. Gifts, DVD/CD/Game purchase or hire, farming supplies, electronics and white goods, clothes, specialty items etc will increasingly all be purchased (movies and music downloaded) online and shipped direct by large aglomerated businesses. Local businesses in a country town stand little chance of competing with these large centralised facilities even with the NBN, as their competitors are close to the ports of entry of the goods, with lower cost of goods sold due to lower inbound transport costs.
Now with the government also looking to centralise government support services such as health, education and welfare etc. Regions will need to adapt quickly as their jobs are removed to the other side of 'The Internet', as these occupations are large regional employers on a per capita basis. Some regions will win using a smart fomulae to increase business in a particular area, but many will not.
G Martin
With NBN, the internet will increasingly become the access route to the "supermarket of the world". While convenient and likley more economic for end purchasers, this will do for many local retailers and suppliers in regional areas what the supermarket centre has done for the suburbs - centralise retail into large centres and push out small local retailers who can no longer compete. Contrary to the "hopes" for nbn in small regional centres, the long term effect is likely to further decrease the viability of remote small regional towns and centres in favour of larger regional centres.
Come to think of it, many retailers in suburban supermarkets might also be affected detrimentally.
David
Most of the commentary I read re NBN comes from CITY people! It is almost like most major city communities think that rural people don't know what they are missing - hardly!
Why is there negligable discussion initiated with country peoples? I lived as a technology delivering professional for 7 years in rural NSW. Country people are very much aware of technology but have a different lifestyle point of view about whether it suits their needs or engage at the same level as the city may.
The points (1) BB2 and (3) G Martin make do not hold anyware near as much water as they may presume. Country folk are already making active choices about whether to support local community business or ship in from outside. In my experience it had a lot to do with the type of product or service. If there was no local expertise then it did not matter where it came from as everything had to go outside anyway. If there was a local supplier then they would often receive the custom.
Lots of assumptions and faith statements are being wafted around by both sides of the debate on NBN.
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