Friday, May 04, 2012
NBN could pay for itself quickly
The National Broadband Network in Australia is an effort to equip the vast majority of country with a fiber-to-the-home network in a short period of time. Debate around the merits of the infrastructure compared to the cost, but a recent Australia Broadcasting Company report explained that recent research from Acero, a Swedish IT research company, shows that national FTTH projects can have incredible results.
According to the news source, there is lots of debate going around about whether or not the Australian government's FTTH project will generate the results that many officials are hoping for. Currently, the discussion is focused on whether the government should perform a thorough study on how much the FTTH network will actually affect individuals and the economy as a whole.
The report said the trouble with such a study is that some government officials think it would make the network look bad because there are so many intangible benefits of FTTH that cannot be measured. However, Acero's study in Sweden aimed to specifically evaluate the socioeconomic impact of an FTTH installation. The research found that the network would end up paying for itself in just three-and-a-half years.
The research performed by Acero shows that there is considerable potential for FTTH in Australia, but it is not necessarily a clear cut indication that the technology will be as successful in Australia as is expected in Sweden. The report explained Sweden's FTTH deployment will likely cost significantly less, making it easier for the network to have a major positive effect on the economy. Regardless of the overarching economic gain of FTTH when comparing Sweden and Australia, the research bodes well for the project as a whole.
According to the ABC, Australia's project may not be as cost-efficient as Sweden's, but figures indicate that the price difference is not so great that Australia will not see similar benefits, just that it may take a little bit longer for the FTTH network to pay for itself.
FTTH has the potential to drive revenue for telecoms alongside broad economic gains for national, state and local government. Broadband is becoming a critical business tool, and the spread of FTTH is often accompanied by fiber-to-the-business installations as well. Furthermore, bringing broadband to the home offers more opportunities for internet-based services, driving online business. As a result, an FTTH network sponsored by a government body can often bring significant benefits to a region.
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