Australian Broadband Model Worth a Look

The Australian government has committed some $43 Billion to building a fiber based network that will reach 93% of Australian homes. The initiative also provides for access by rural homes that can't be joined to the new fiber network.  Of course, the initiative treads on the toes of the ISPs in the country, who have developed the large network already in place.

The Australian initiative looks, on the face of it, like big government taking over business activities that are best left to business. However, there are good arguments for this approach. For example, the internet is becoming the core of communications in many advanced countries, and that trend is growing with the convergence of television  and the internet, the spread of VOIP for telephone and the use of social media for various communications in society.

This raises a question as to whether the whole system can safely be left to private business interests, who will pursue the development of the networks that will yield the highest profits, but will not necessarily ensure that most people in the country are connected to the means of communication. On the other hand, one can argue that private interests built the telephone system and most people in the country have access to telephones. The argument is weakened by the fact that the telephone industry has been heavily regulated.

Either way, the Australian model may not necessarily be the answer, but it is worth considering as a way to ensure that all (or virtually all) citizens have the means to communicate with each other. See a write-up about the Australian initiative in this article.