The Benefits and Challenges of National Broadband Network - Case Study Example

Case Study: National Broadband Network Name Course Name and Code Date Introduction The National Broadband Network (NBN) is a proposed Australian open access data network. The aim of NBN is replacing the existing copper cable with modern technologies to support the requirements of consumers. The Federal Government understand the importance of emerging digital economy and empowering individual and businesses through the provision of broadband Internet would improve both personal and business activities. The new collation government seeks support from independents, minor parties and green voters on understanding Fiber-to-the-Premises (FTTP) approach to the establishment of NBN, which is similar to former Labor Government’s broadband policy of FTTP; FTTP is using a fiber option to connect a premise with a fiber node. The problem is convincing these parties to come together and support the idea of FTTP in accomplishing the goals of NBN. The report discusses the benefits and challenges of the project. Benefits of the Project FTTP approach to implementation of the NBN project is important and has numerous benefits compared with other approaches. Some of the benefits of the project include Internet speed, long term costs, conforming to world dynamics, and spun of operations. Internet Speed Harmsen (2016) highlights the importance of speed in providing NBN. Through the use of FTTP, Harmsen (2016) estimates the Internet speeds of up to 100Mbps, which is different from other proposed approaches. In addition, more than 90% of the business and homes would be covered, but the estimated cost of $43 billion may be the problem. Triple J Hack (2016) discusses the importance of speed and the continuity of fiber optic throughout the infrastructural development to champion the requirements of speed and efficiency. The speed from nodes through the fiber is slower compared to speed between fiber to fiber. Whigham (2016) concurs through stating the mixed technologies approach is ineffective because of inferior results and short-sightedness without considering the costs implications. Long Term Costs It is important to analyze the long-term costs. The proposal to use other approaches is alright, but the frequent infrastructural changes are ineffective. LeMay (2016) states the entire network should be based on fiber optic is crucial, and premise approach is appropriate. Alternative approaches such as the FTTN would require future changes in replacing the copper wires and other technologies between the node and the premise. Thus, the entire project should be conclusive in nature whereby the design and implementation of the project should use fiber optic throughout (Duckett, 2016). In addition, comparing the current costs and include the adjustments associated with upgrading the system would make the current investments appropriate. For example, the economic activities the individuals and businesses operate may be improved, which returns to the government in terms of increased revenues in taxes. Conforming to World Dynamics Triple J Hack (2016) argues the world technological requirements and expectations are changing. Numerous countries around the world are relying on fiber for Internet and propose of nodes is inappropriate because it departs from technological requirements. In addition, the use of node will require more than 20,000 nodes, which would be expensive to replace in the future and the speed to homes would be affected (Triple J Hack, 2016). Whigham (2016) argues that it is preferable to cost more during the initial constructions providing the technological developments reflects the world dynamics. Long sight is important and short-term problems such as funding complications should not be used to gauge the quality and effectiveness of the project (Page, 2016). However, the determination of the project should incorporate different operational requirements and expectations of the technology. Spun of Operations Whigham (2016) says the main winners of Labor’s policy on the Internet “are regional Australia and outer suburban suburbs,” because the current infrastructure primary exists in Brisbane, Melbourne, and Sydney. Hence, the FTTP would target regional users and expand the quality of Internet. In addition, persons already connected to the FTTN would be upgraded into FTTP, which creates a win-win situation for the different customers. The use of FTTP enables inclusion of other technologies such as telephony. Moreover, compared with other technologies such as copper, fiber optic is not easily degradable. It means the technology lasts longer while providing quality services to the targeted customers: business and individuals. Challenges of the Project The ideals of the project are important and numerous challenges of the project exists. Some of the challenges of the project, which may negate the implementation of the project include cost, conflict and monopoly, and political issues. Cost Harmsen (2016) states that cost is a major problem. For example, the pilot trial in Tasmania in 2010 estimated the entire cost of the project would exceed $43 billion, which is different from the initial estimation of $15 billion. Turnbull (2016) addresses the costs from an investment and economic perspective. Turnbull contents that the FTTN is preferable to FTTP because the economic sense and the requirement to upgrade technology in future. According to Turnbull (2016), it would be cheaper to implement, first, the FTTN followed with FTTP to address the economic and financial costs of the project. Whigham (2016) highlights the cost of the project may be more than $56 billion based on the current economics and the number of homes targeted. Millner (2016) points to infrastructure developments by companies such as Telstra meaning it would cost less if FTTN approach is employed. Conflict and Monopoly Conflict and legal problems may occur because of engagement with different stakeholders. Harmsen (2016) presents the government had requested for proposals and Telstra were among the bidders. However, Telstra bid was excluded even though it owned and operated most of the copper Internet technologies. Turnbull (2016) discusses the role of Telstra in the infrastructural development, and the company will be compensated for some time because of the copper technology. Problems may occur in determining the pricing and cost of the substitution and transfer of ownership of the technology. Millner (2016) highlights the significance of current technologies and improved speeds because of more nodes near premises supplied by Telstra. The concerns of concentrating on Telstra is it is a private company, which can create policies and procedures inhibiting the effectiveness of infrastructural development. Telstra may propose pricing and similar mechanisms, which goes against the ideologies and frameworks of the development. Political Issues Political and legal delays towards advancing the project may be a problem. In the implementation of any project, it is important to bring together different stakeholders. Harmsen (2016) presents the current proposal is similar to former government proposal and due to ideological issues, may create hurdles in its implementation. In any infrastructural development, political issues in terms of social and economic requirements affect the implementation of the project (Johnston, 2016). Having positive support from different stakeholders through the use of politics in analyzing the needs and expectations of the population, and aligning these requirements with the design and implementation of the project. However, having partisan views and perspectives of the project contributes to numerous delays, which affects entire implementation of the project. Thus, coalescing political views would reduce problems inhibiting the implementation of the project. Conclusion NBN proposal to implement the FTTP approach to supply Internet to different consumers including these businesses and individuals raises both challenges and benefits. The new government has to analyze the situation and present a proposal that brings together the different parties and ideologies. In advancing the proposal, numerous challenges and benefits exist. Some of the benefits include speed of internet, long term costs, conforming to world dynamics, and spun of operations. These benefits improve the business and personal requirements and ensure the economic requirements of development are championed. Moreover, these fundamentals show the importance of FTTP compared with alternative strategies. Some of the challenges of the project include initial costs, conflict, and monopoly when it comes to companies such as the Telstra that operate the current copper network, and legal and political challenges. These challenges increase the cost of operation or efficient of the entire project. Due to diverse nature of the views in terms of benefits and challenges, bringing together the different stakeholders is important. Collecting the views of the different parties such as independent and green parties and coalescing on the issue ensures a win-win situation is devised and implemented. The aim is to ensure these different parties or ideological views are incorporated in creating the project in terms of contributing to the design, implementation processes, and evaluation based on milestones. Such processes address numerous challenges including the political and legal perceptions resulting in effectiveness in the implementation of the project. References Department of Communications and the Arts. 2016. Homepage. Australian Government. Available at: https://www.communications.gov.au/ [Accessed on 31st August 2016]. Turnbull, M. 2016. Coalition Broadband Policy - Frequently Asked Questions. Prime Minister of Australia. Available at: http://www.malcolmturnbull.com.au/archive/coalition-broadband-policy-frequently-asked-questions#cheaper [Accessed on 31st August 2016]. NBN. 2016. Homepage. Retrieved from http://www.nbnco.com.au/ [Accessed on 31st August 2016]. Millner, I. 2016. Fibre to the node or fibre to the premises? Synergy Telecoms. Available at: http://www.synergytelecoms.com.au/blog/fibre-to-the-node-or-fibre-to-the-premises/ [Accessed on 31st August 2016]. Johnston, R. 5 January 2016. NBN Responds To Claims FTTP Is Better Value Than FTTN. Gizmodo. Available at: http://www.gizmodo.com.au/2016/01/nbn-responds-to-claims-fttp-is-better-value-than-fttn/ [Accessed on 31st August 2016]. Harmsen, N. 20 May 2016. Curious Campaign: What are the major parties' plans for the NBN? ABC. Available at: http://www.abc.net.au/news/2016-05-20/nbn-curious-campaign-major-parties-plans/7431000 [Accessed on 31st August 2016]. Triple J Hack. 23 May 2016. Why's neither party talking about NBN policy this election? ABC. Available at: http://www.abc.net.au/triplej/programs/hack/why-is-no-one-talking-about-the-nbn/7438786 [Accessed on 31st August 2016]. Page, R. 1 June 2016. Don't be left behind on cut-off day. Choice. Available at: https://www.choice.com.au/electronics-and-technology/internet/connecting-to-the-internet/articles/nbn-installation-and-connection [Accessed on 31st August 2016]. Duckett, C. 12 June 2016. Labor pledges to end FTTN for up to 2 million FTTP NBN connections. ZDNet. Available at: http://www.zdnet.com/article/labor-pledges-to-end-fttn-for-up-to-2-million-fttp-nbn-connections/ [Accessed on 31st August 2016]. Whigham, N. 1 July 2016. How the major parties differ on the NBN this election. News. Available at: http://www.news.com.au/technology/online/nbn/how-the-major-parties-differ-on-the-nbn-this-election/news-story/0c16972b11ddda09f493edc8628f40f5 [Accessed on 31st August 2016]. LeMay, R. 4 August 2016. Shorten confirms Labor will shift to a “hybrid” NBN policy. Delimiter. Available at: https://delimiter.com.au/2016/04/08/shorten-confirms-labor-will-shift-hybrid-nbn-policy/ [Accessed on 31st August 2016]. Read More