By
December 20, 2018
Ultra-fast broadband will push New Zealand into the global broadband top ten – but what must we do to get the economic and social benefits?
As a nation we are investing, publicly and privately, over $3 billion dollars in a once-in-a-generation fibre upgrade. It is a bold, visionary initiative. International analyst Benoît Felten says there is nowhere else in the world where is fibre being taken so far, so cost effectively.
New Zealand’s appetite for fast, consistent broadband is exploding with our consumption of high definition video over smart devices. Fibre will future-proof that need. But our current relationship with the internet is as a consumer, not a creator and that’s not generating economic benefits.
New Zealand typically ranks well for on global indices of technology use, however as was seen in the 2012 Web Index and the World Economic Forums 2014 Network Readiness Index, our ability to use the internet for business and economic gains tends to lag social and individual use.
Economic transformation means we must use the internet strategically. Our national wealth is growing slower than other countries: we work harder and earn less. Exports contribute just 30 percent of our income – less than comparable countries - and our economy is founded on micro-businesses. Socially we have an aging population and a growing divide between cities and regions.
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How will UFB help?
1. Greater wealth, based on innovation and productivity
Researchers at Alcatel Lucent’s Bell Labs estimate UFB could generate $32.8 billion in economic benefits over 20 years.
McKinsey Net Matters research shows better connectivity can drive the weightless economy. It says small business, which is most companies in New Zealand, get the biggest boost in export growth, job creation and profitability from fast broadband.
Locally, the Innovation Partnership with Sapere research recently found that New Zealand firms who make more extensive use of the internet are six percent more productive, or four years ahead, of the average firm in their industry. If low-internet-use firms operated more like high-use firms, this could be worth an additional $34 billion to the NZ economy.
Also Colmar Brunton research shows 60 percent of New Zealand businesses say UFB will help them.
2. Regional revitalisation
Shaun Hendy and Sir Paul Callaghan have shown that connecting cities, towns and small regional centres allows New Zealand to collaborate and innovate as a ‘city’ of four million people. It removes the tyranny of distance and helps regional communities to utilise their natural resources and capabilities to attract new talent and new business, as well as help address some of the challenges they face today. Regional businesses can extend their reach nationally and internationally; families can stay connected and communities can access specialist education and healthcare services out of reach today
3. Smarter, more efficient homes
Fast broadband can make our homes smarter and that means more comfortable, safer and cheaper to run.
If you have a smart home you can turn heating on remotely so it is warm when get back from work. You could watch your baby safely sleeping from your mobile or even have the house check its inhabitants are healthy. And if someone, say an elderly relative, is feeling sick, they can make a video call to a doctor or nurse.
Smart homes don't just make life easier for homeowners. Thanks to sensors, smart grids and automation they can be part of smart, sustainable communities where everyone can live more safely and where those in need are just moments away from the support allowing them to stay independent.
4. Work/life balance
One in four New Zealanders use the internet to work from home. A recent AUT teleworking study found that 89 percent of employees teleworked for at least an hour each week and nearly 75 percent found that it improved their attitude to work.
Demand for workplace flexibility is increasing to meet the needs of an ageing workforce; by 2031 half of our population will be aged 40 and over.
High-definition home videoconferencing means we can literally be ‘present’ in two places at once and collaborate without physically needing to be present.Teleworking saves money, reduces traffic congestion, supports parents re-entering the workforce and helps keep skilled people in the workforce for longer. Telework NZ outlines a number of examples that teleworking can provide.
5. Better education outcomes
By the end of 2014 almost every New Zealand school will have ultra-fast broadband. We have already seen how e-learning on better broadband can create opportunities for our children irrespective of socio-economic background and culture. It can change attendance and educational results. The Manaiakalani Initiative and Computer Clubhouse are good examples.
The challenge is how we harness the opportunity at multiple levels – education policies, learning, access to equipment and teacher training — to keep New Zealand at the cutting edge of world class education.
Ultra-fast broadband is a launch pad for students of every age, whether at school, home or work, to learn and share experiences across cultures, race and geography. And it opens us up to participate in the rich resources of leading universities and institutions across the world.
Ultra-fast broadband is an enabler, a catalyst. But short-term economic change requires vision and intent. No one party can do it alone. And it requires a different type of conversation: one where educators, business leaders, politicians, investors, entrepreneurs consider how we work together to maximise the benefits of this next generation infrastructure for New Zealand.
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