OECD: Broadband networks lead market recovery

By Brett Winterford on Jul 31, 2009 3:21 PM
Filed under Telco/ISP

Australia's NBN plan dwarfs global efforts.

A report released this week claimed the global ICT sector was showing signs of recovery, with investments in national broadband network plans forming a central component of government efforts to stimulate growth.

The report, prepared by the Organisation for Economic Co-operation and Development (OECD), said the global ICT sector is in a stronger position than it was at the end of the dotcom bust.

"Strong points include higher cash to debt ratios in company balance sheets, consolidated and stronger firms, and the greater importance of the Internet economy," it said.

"There are signs of recovery, with the rate of decline bottoming out and turning up in the most recent cyclical data (May-June), with positive month-on-month growth for most countries."

The report also dived into the ICT implications of stimulus packages prepared by governments the world over to revive the flagging economies.

"Many of the stimulus packages recognise the importance of modern fixed and wireless communication infrastructure to support innovative products and services and the need to devote some public resources to improve or accelerate deployment," it said.

The report showed that Australia's investment in a national broadband network dwarfed other national 'networked recovery' efforts, some six-times larger than the investment in broadband proposed by its nearest peer, the US (see table below).

OECD: "Networked recovery": Investing in ICT infrastructure (source: OECD)

Country	Planned investment	Goals	Penetration targets	Speed targets
Australia	AUS 43 billion (USD 34.4 billion) (public-private)	Combination of fibre to the premises (FTTP) and next generation wireless and satellite technology	90% for FTTP and 10% for wireless/satellite	100 Mbit/s for fibre
Austria	EUR 25 million (government) - EUR 100 million (public-private)	Extending high speed broadband and usage of broadband	n.a.	over 25 Mbit/s
Canada	CAD 225 million (USD 211 million)	Extending broadband coverage to un-served rural and remote communities	as many households as possible by 2012	n.a.
Finland	EUR 66 million (USD 96 million) of EUR 200 million (public-private)	Extending high-speed broadband	all permanent residences, business, public administration establishments	1 Mbit/s by end of 2010 100 Mbit/s by end of 2015
France	n.a. EUR 750 million for three years (government share n.a.)	Development of broadband network in small or medium-sized cities, extending (fixed / mobile) broadband. Internet on TGV Est lines (EUR 15 million), and development of networks for education and research. Funds provided by a French public bank and the private sector to develop next-generation networks in less connected areas	access to broadband by 2010 and mobile broadband by 2012 for everyone n.a.	n.a. n.a.
EU	EUR 1 billion (USD 1.46 billion)	Extending and upgrading high-speed Internet (focus on rural communities)	100% coverage of high speed Internet by 2010	n.a.
Germany	an estimated EUR 150 million (USD 219 million)	Accelerating the spread of broadband networks. By 2010 all unserved areas connected. Nationwide capable broadband access by no later than the end of 2010	by 2014, ¾ of households should have access to high-speed Internet (all by 2018)	target is 50 Mbit/s
Japan	Yen 185 billion (USD1.9 billion)	Eliminating the digital divide, promoting the development of wireless broadband and fostering digital terrestrial broadcasting	broadband: 100% by 2010 ultra-high speed: 90% by 2010	n.a.
Luxem -bourg	EUR 195 million (USD 285 million)	Accelerating the build-out of Luxconnect information highway, including through boosting public tele- communications works	n.a.	n.a.
Portugal	EUR 50 million - fiscal incentives1 (USD 73 million)	Subsidised investments in new generation broadband networks	optic fibre that will allow 1,5 million users to connect	n.a.
Spain	n.a.	Measures for overseeing the installation of new generation fibre and regulating broadband	n.a.	up to 30 Mbit/s, "at cost-oriented prices"
United Kingdom	GBP 200 million (USD 328 million) GBP 150-175 million a year raised by levy on fixed copper lines	Universal service commitment for broadband Next Generation Final Third project which is aimed at developing next generation networks	virtually every community 90% coverage by 2017	2 Mbit/s per second by 2012
United States	USD 7.2 billion (EUR 4.9 billion)	To foster broadband service to unserved / underserved areas, promote broadband in schools, libraries, health-care providers, and other entities.	n.a.	no set minimum data speeds

OECD: Broadband networks lead market recovery

12 comments in this discussion

"Yes you are right - Telenor gives TV subscriptions, especially over fiber, but they are not a broadcast corporation or tv/film producer. But the international "Telenor Group" is something quite ..."

By mck

Tags

nbn, national, broadband, network, oecd, broadband

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Comments: 12

mck Jul 31, 2009 4:32 PM	That's a bit dumb. Every other country already invested the money. It's only Australia that's so far behind it actually needs to spend so much just to catch up. Australia no doubt will still be behind after NBN is rolled out. I'm ashamed to say from my 25Mb/s (with zero traffic charges) fiber-optic line in country side norway :-)
Slatts Jul 31, 2009 6:58 PM	Lets see now... we'll wonder over to the CIA world book... OK here we go, Norway, Aprox land area 0.3 million square kilometres, Australia about 7.6 million square kilometres. About 25 times the area and only about 4 times the population. I think that means that it'll cost a bit more to set up a fibre network in Aus than it did in Norway. And I'm sure there are some other countries other than Aus that are lagging in this area. having got that off my chest, it's about bloody time we got some first world infro bloody structure. ;)
mick09 Aug 1, 2009 8:01 AM	Yes indeed "mck" shame on you ! Lets see now...http://en.wikipedia.org/wiki/Internet_in_Norway "Depending on the provider, offered speeds range from 512/128 kbit/s to as high as 8/1 Mbit/s for ADSL, while ADSL2+ is slowly becoming available with speeds reaching up to 24/1.5 Mbit/s." - on fibre ? "Prices vary ... but prices can be found as low as 195 NOK (US$30) per month for the most basic ADSL connections, while ADSL2+ is somewhat pricier, it starts at around 499,-(NextGenTel) NOK (US$82) per month. This is in addition to DSL equipment rental and installation fees." Has the balmy Norwegian summer gone to your head "mck" ?
Maxxi Aug 3, 2009 5:24 PM	LOL mck.... Slatts and Mick09 sum it up well... We will see just how far behind Australia is after the rollout... BTW: Ever compared the number of people that emigrate from Norway to Australia as opposed to vice versa? You might want to think about that one before make very unqualified statements... And yes I know Norway well and have friends and customers there since 1980... Love the place... Then you should try an easy exercise mck: Take a holiday and hike across Norway, then fly over to Australia and try it here... When you have finished both those long walks, then come back to us again and tell about networks and distances...??
mck Aug 3, 2009 6:02 PM	My point was only that it's a bit rich for the article to insinuate how fantastic australia in "leading" the way in internet infrastructure and the economic recovery - when all we are really doing is catching up. Each country is public spending large amounts of money to get out of the recession, and each country is spending it where they need it. Let's look at the total money spent for example. The article is misleading. I'm well aware of the size of australia and the difficulties rolling out any decent infrastructure brings. I'm from a farm there that still only gets 12Kb/s on a dial-up modem because of dodgy copper lines in the earth. With all the difficulties in mind I do think it's really fantastic that they are seriously trying to catch up now. But today even most coastal towns down under still suffer miserably. Slatts: australia's population isn't even distributed across the whole country, AFAIK 95% live within 5Kms of the coast line. 98% within 20km, this blows your argument out quite a bit. mick09: trying to quote outdated information is a bit pathetic, read the page "As of the time this is written (May 2007)..." good one mate :-D My 25Mb/s (10Mb/s up) fiber connection costs me 400kr/month (US$80 - but salaries, and cost of living, are double or even three times australia), and there was no installation or modem costs (but a binding time naturally). Furthermore there is no traffic limit or charge. Want to check your facts, check out telenor.no Maxxi: i could walk across the country, and i'd put a friendly bet down that i've walked more of the country than you have, but when 95% of the population all lives along the coast line i'd expect at least these ares to have a decent internet connection by now (including no traffic limits or charges). and take note that the coast line of norway is the same as the east cost line of australia. I did not mean to diss australia at all, but was simply trying to show i thought the article had a misleading slant on it. And for "unqualified statements" well I've backed up my facts.
Slatts Aug 4, 2009 8:05 PM	[quote=mck}and take note that the coast line of norway is the same as the east cost line of australia.[/quote] that'd be all those fiords then? And there's a bit more to Aus than the East coast. The most recent info I can find from the ABS had 83% of Ausies living within 50Km of the coast and 86% in urban areas. that was in '98. I don't suppose the proportions will have changed that much since then. and as we know the average Australian lives on the East coast South of Hervey Bay. And the average human being is a China man.
mick09 Aug 5, 2009 8:09 AM	Well, well now "mck", where do you live? Lets see now... we'll wander over to www.telenor.no and Babelfish it. Telenor er nå i gang med å bygge ut fiber. Telenor is now in the process of building out fiber. Dette er en tidkrevende prosess, så foreløpig avhenger dette litt av hvor du bor. This is a time consuming process, as currently some of this depends on where you live Hastighet opptil Speed up NOK/mo Bredbånd over fiber Broadband over fiber Bredbånd Medium 8/5 Mbits 449,- Bredbånd Premium 25/10 Mbits 549,- Bredbånd Max 50/10 Mbits 1390,- ADSL Broadband Bredbånd Basis 1500/400 kbits 299,- Bredbånd Medium 5000/500 kbits 399,- Bredbånd Premium 16000/800 kbits 499,- Perhaps you have a "mate" in telenor ? BTW I pay AU$40 pm (NOK 200 pm) for a real 17 Mbits, now.
mck Aug 5, 2009 7:17 PM	Arn't you clever mick09 :-) > Bredbånd Premium 25/10 Mbits 549,- Sorry it is indeed not 400kr (in fact i get it for free but that's a different story). This is ~AUD$105, but relatively under $50 when you take into account cost-of-living and salaries. And you're right about not _all_ of norway is covered by Telenor fiber. But there is different Fiber companies in each different municipality. The reference to "in the process of building" is out of date, or applicable to the next valley they're currently rolling out to. Is this 17 Mbits connection outside a metropolitan area? Being inside a city is meaningless to the argument. I think you'll agree my statements still stand equally strong? Or do you really think Australia is "leading market recovery" ? And that any NBN will provide a better connection that existing fiber networks in other countries? That Australia is now "leading" the way in internet infrastructure?
mick09 Aug 6, 2009 8:02 AM	Well, well now "mck", where do you live? "it is indeed not 400kr (in fact i get it for free" "This is ~AUD$105, but relatively under $50" Economics from Frank Baum's Land of Oz? The wizard was just smoke and mirrors. Telenor is, of course, the Norwegian Telstra, privatised in 1994, and similar to, but somewhat smaller than, Telstra, ABC and SBS all rolled into one. "there is different Fiber companies in each different municipality" ? There is only one Telenor in Norway. Do you mean the "municipalities" of Sweden, Denmark, Ukraine, Russia and Thailand ?
mck Aug 6, 2009 9:09 PM	mick09: You really are having a hard time accepting this aren't you? As well as really straying off topic. > Economics from Frank Baum's Land of Oz There's more than just an exchange rate when comparing the cost of something between two countries. To me 550kr in norway is definitely not the same as $105 in autralia despite it being what the exchange rate has it to be. For example: 550kr is ~1% of my monthly norwegian salary, btw I'm a senior developer at a respectable company. In Australia i would not expect to be earning $11k per month. Maybe i wrong here... i can't say i'm exactly up to date on the job market down under. Or: one beer here costs between 60 to 100 kr, or $11 to $19. Or: a liter petrol is ~$2.30 here is norway. Comparing some commodities between countries doesn't make sense because of differences in cost-of-living and salaries. Even with this in mind taxes and what the country produces can make further differences. > Telenor is, of course, the Norwegian Telstra, privatised in > 1994, Correct. > and similar to, but somewhat smaller than, Telstra, ABC and SBS > all rolled into one. Not correct. Public broadcasting (equivalent of ABC and SBS) is NRK1 and NRK2. Although SBS being a wartime emergency broadcast is something quite unique. > There is only one Telenor in Norway. this was a bit sloppy mick09. Why would Telenor be the only operating fiber-optic infrastructure and/or internet-over-fiber provider company in the land? Telenor isn't even the largest. According to this amusing article 'Lyse' is http://arstechnica.com/tech-policy/news/2009/05/norwegian-isp-dig-your-own-fiber-trench-save-400.ars But i can quickly find many more companies: Mimer.no, abfibernett.no, halden-dataservice.no, canaldigital.no, ardalsnett.no, banetele.com, broadnet.no, smartehjem.no, eidsiva.net, itpartner.no, eltele.no, hemnenett.no, hikt.no, signal.no, stayonline.no, varanger-kraft.no, kband.no, tdc.no, rauma-energi.no, nittedalsnettet.no, nettstar.no, neas.mr.no, los.no, loqal.no But what exactly does any of this have to do with how i thought the article was misleading? Are you solely on a crusade to discredit me? :-)
mick09 Aug 7, 2009 10:15 AM	Well, well now "mck", where do you live? From www.telenor.com (no babelfish needed): "The Telenor Group is a leading provider of telecommunications services worldwide. The company has a strong footprint in Central Eastern Europe and Asia and a leading Nordic position in mobile, broadband and TV services. * the Telenor Group is currently ranked as the world’s seventh largest mobile operator (in terms of subscriptions). * the revenues were NOK 111 billion in 2008. * the Telenor Group has 168 million mobile subscriptions worldwide (Q2 - 2009). * we have telecom operations in 13 countries. * 39,400 employees go to work every day in these 13 countries. The table below shows the market position of Telenor in Scandinavia. Norway Denmark Sweden Scandinavia Mobile 1 2 3 2 Broadband 1 2 2 1 TV 1 3 2 1 Telenor has a stong position in Scandinavia, being the leading player in broadband and TV services, and the second on mobile services in terms of subscribers." Back here in Oz, Telstra Sales revenue 2008 was AU$24.7 billion (NOK 125.4 billion). I am unfamiliar with the details of Telenor's market-leading TV services and the comparison with ABC and SBS may have been inappropriate - perhaps Foxtel would have been better ? Which of your "many more companies" has annual revenue greater than NOK 100 billion ? Enjoy your Norwegian summer, I fear the long winter's night is coming - stocked up on schnapps ? :-D
mck Aug 8, 2009 3:00 AM	Yes you are right - Telenor gives TV subscriptions, especially over fiber, but they are not a broadcast corporation or tv/film producer. But the international "Telenor Group" is something quite different and wasn't in my mind. They are huge and operate throughout the world, and are known for their research and development behind GSM, UMTS, and the Opera browser. I wasn't referring to bigger companies, just internet-over-fiber providers, and Lyse being the larget as in total subscribers within norway -at least according to the article i read+posted. Of total internet subscriptions they are undoubtedly the largest. > Enjoy your Norwegian summer, I fear the long winter's night is > coming - stocked up on schnapps ? :-D Cheeky. More Cowbells please :-) http://www.monkeybriefs.com/view/video/More-Cowbell-\|-Original-Full-Version-\|-SNL_2373.html