Broadband FrameworkPathway to the Future

2

Outline

• Broadband - current coverage, significanceand challenges

• Broadband Framework• Customer Access Network DemonstrationsProgram

• Evaluation and information sharing• Provincial Victoria Economic Statement

3

Coverage and expected growth

MILDURA

WODONGA

COBRAM

SWAN HILL

BALLARAT

BENALLA

BENDIGO

CASTLEMAINE

CRANBOURNE

DAYLESFORD

DONALD

ECHUCA

GEELONG

HAMILTON

LEONGATHA

MANSFIELD

MORTLAKE

MOUNT BEAUTY

ORBOST

SEYMOUR

SHEPPARTON

ST ARNAUD

STAWELL

WANGARATTA

WARRNAMBOOL

WERRIBEE

YARRAM

HORSHAM

TRARALGON

HEALESVILLESUNBURY

PORTLAND COLAC

NHILLWARRACKNABEAL

BAIRNSDALE

Wireless coverage

New DSL Coverage

April 2004 Coverage

State boundary

Major Highway

• 89% of Victorians have access to basicbroadband (67% in regional Victoria)

• Broadband and mobile are the growthmarkets

Telecoms expenditure VIC 2004-2009

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Current Jun-05 Jun-06 Jun-07 Jun-08 Jun-09Expenditure ($A m

illion)

Fixed Line

telephone

Mobile telephone

Metro equivalentbroadband

Pay TV

Narrowband

Satellite

broadband

4

Benefits are substantial in all sectors

(Source: ACIL Tasman, Economic Impacts of Broadband in Victoria, 2004)

• Business and Economic by 2015- $15bn GSP increase- additional 153,000 jobs- real wages 3% increase- investment +10.46%

• Community- delivery of better services, regardless oflocation- new ways to support and connectcommunities

• Consumers- access to personal/recreational services

5

Challenges• Rate of uptake

- Slow start compared to other economies

- Some cost barriers

- Infrastructure gaps especially in regional Victoria

• Broadband infrastructure and markets

- Lack of competition

- New infrastructure technologies will be needed (eg fibre to the home)

- Tough investment market

• Effective use - adoption & adaptation to absorption

- Discovering most effective ways to use broadband

- Connectivity is only one cost in this – need to develop new processes …

6

Broadband Framework - three principles guidethe framework

• Strategic use of broadband to deliver community benefits

- using broadband in Government service delivery

- aggregating for infrastructure investment

• Supporting market solutions

- market contestability should be the primary mechanism driving access,

pricing and market development

• Complementing Commonwealth responsibilities

- Commonwealth is responsible for equity of access and regulating to

allow positive market developments

- the State will not accept shifting of this responsibility

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…. with six key strategies

• Strategy 1 – use procurement to support leading use and expand

infrastructure and services for the wider community

• Strategy 2 – be a leading broadband user

• Strategy 3 – use Government infrastructure and planning role to support

strategic broadband projects

• Strategy 4 – support the development of innovative market

solutions

• Strategy 5 – provide information assist Victoria’s broadband

market

• Strategy 6 - advocate in the interests of Victorian broadband users

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SmartONE

•minimum 4mb to all schools

•fibre to all schools

•700 exchanges upgraded(up to $100m capitalinvestment)

•potential future business

and community benefit

Aggregated procurement … allowed SmartONE

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Leading Use in Government

$15m Broadband Innovation Fund (BIF) – four projects funded…• Hume Regional Digital Imaging Project ($8m)

Hume RegionalBroadband DigitalImaging Project

BENEFITS

• 81% increase in procedures performed• Reduced patient cycle time from 219 to 81 minutes• 79% reduction in hard-copy film costs• Increased revenue for radiology practices of $1m

Anticipated OutcomeAnticipated Outcome

• Learnings and system wide adoption as part of HealthSmart• Learnings and system wide adoption as part of HealthSmart

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Broadband Innovation Fund� BIF - Yarra Valley e-Rich learning

environment ($13m)

� Breast Screen Victoria - Mobile DigitalMammography ($9m)

� South West Regional Health – Virtualreception, assessment and monitoring ($3m)

��������600 laptops for Yr 7 students over 3 years

2+ meg

10 meg

subsidised

DE&T Common eLearningEnvironment

• Curriculum• Intranet• Teaching• Assessment• Reporting• LMS• LAB

Lilydale

Upper Yarra

Healesville

Lilydale Heights

Pembroke

Mooroolbark

DE&T

CroydonLAB

www

eTech: Leaning Interface /Server

PrimarySchools

Homes

~ 13 000 students~ 20 000 parents

~ 700 teachers/staff

Connectivity

��������600 laptops for Yr 7 students over 3 years

2+ meg

10 meg

subsidised

DE&T Common eLearningEnvironment

• Curriculum• Intranet• Teaching• Assessment• Reporting• LMS• LAB

Lilydale

Upper Yarra

Healesville

Lilydale Heights

Pembroke

Mooroolbark

DE&T

CroydonLAB

www

eTech: Leaning Interface /Server

PrimarySchools

Homes

~ 13 000 students~ 20 000 parents

~ 700 teachers/staff

Connectivity

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• Customer Access Demo projects ($5m)

- stimulating market solutions to learn

- reduces risks for future investors

- $4m already committed

• Demand Aggregation projects ($1.5m)

- help user groups organise themselves

• Aurora (Epping North) FTTH project

- RFT with VicURBAN

- up to 8,500 homes

Innovative market solutions

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Customer Access Network DemonstrationsProgram

$5 M Capital Funding

• Stimulating market solutions

• Supporting alternate commercial

models

• Trialling new technology

• Collecting data on business

operations

• Reduces risks for future

investors

• $4m committed

GippslandCANDP

Wodonga CountryTellCANDP

Castlemaine/BCT CANDP

Grampians/PyreneesCANDP

Shepparton GMTelCANDP

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Establish the vision and …

• Include broadband in council corporate documents

• Municipal Strategy Statements

• Develop ICT plan for the area …with:

- Economic arguments

- Council processes

- Supply/demand map

Councils’ role in the Digital Community

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Information provision

• Subscribe to Broadband Access Office

website (mmv.vic.gov.au/broadband)

• Regional telecommunication spend/demand

reports

• Other Broadband reports

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Provincial Victoria Economic Statement

• $6 M to improve accessibility and affordability ofbroadband in provincial Victoria- NGN broadband infrastructure, services and applications – “broadbandaccess at affordable prices”

- two contestable infrastructure grants – Grampians and Loddon – “may beextended statewide if successful”

Broadband FrameworkPathway to the Future

Question & Answer

Martin Doddrell & Ron Cooke

Multimedia Victoria