Small business unsure about how to best benefit from NBN, report finds

Small business remains unsure about how they can best take advantage of the National Broadband Network, a report has found, which urges the Government to provide more information to rural and regional businesses about the network. 

The Australian Industry Group national CEO survey on business investment in new technologies found that the number of chief executives confident in their readiness for the NBN was just 55%, down from 80% three years ago.

“Confidence among small businesses [fewer than 20 employees] and businesses located in regional and rural areas was found to be particularly low,” it says.

“This report confirms the importance of government programs to help small-to-medium businesses better understand how they can take full advantage of the opportunities provided by a National Broadband Network,” outgoing AiG chief Heather Ridout says.

The report, which surveyed more than 500 heads of manufacturing, services and construction companies, also finds that only 30% of business say they have a high or medium understanding of the practical impacts of the faster broadband speeds the NBN will deliver.

Deloitte, which sponsored the report, says the value of the NBN will “only translate into the projected competitive edge if businesses are ready to quickly and fully partake of the opportunities, applications and services once the NBN is in place.”

“This, therefore, needs knowledge, skill, investment and courage,” says Deloitte technology, media and telecommunications leader Damien Tampling.

Conducted in October and released yesterday, the report also found that almost 80% of respondents made investments in new technologies over the last three years – to reduce exposure to labour costs, to comply with regulation and to reduce environment impacts – and technology accounted for 21% of respondents’ total investment over the period.

AiG’s Ridout says respondents invested in a variety of new technologies including in ICT hardware and software, automation, robotics, control equipment and instruments, other machinery and equipment as well as security and surveillance equipment and systems.

In order for the Government to reach its goal of Australia being among the top five OECD countries for businesses using online technologies, AiG recommends:

• Top-down work with business and technology leaders and research organisations to define the state-of-the-art knowledge of productivity and broadband.
• Bottom-up work with individual businesses to assess their opportunities for and barriers to productivity-enhancing use of broadband.
• Accessible communication of the results to industry through existing business channels.

“Given that this is just the beginning of the digital age businesses need to be actively encouraged, supported and facilitated by government and research institutions,” it says.

The report comes as Telstra completes an upgrade to its hybrid fibre coaxial cable that allows speeds of up to 100Mps – about the same offered by the National Broadband Network – to premises across the major cities.

NBN Co., the company builder and owner of the network, told the Australian Financial Review that its early rollout is based on areas of need that are now served by wireless and satellite.