[LINK] Telcos holding us back

[Bernard Robertson-Dunn]

Telcos holding us back
Sid Marris
MAY 11, 2007
The Australian
http://australianit.news.com.au/articles/0,7204,21709141%5E15306%5E%5Enbv%5E,00.html

AUSTRALIA's effort to improve its competitiveness has stalled, with a 
poor performance in telecommunications infrastructure hampering the 
nation's potential.

The World Competitiveness Scoreboard for 2007 released in Switzerland 
yesterday says Australia needs better foundations for economic growth in 
an increasingly competitive world.

Compiled before this week's budget, the study by Swiss business school 
IMD, says Australia must:
	do more to reform its education system;
	promote higher educational and skill levels; and
	encourage greater business innovation and technology use.

The Howard Government this week made a $5 billion long-term injection 
into the education sector in the form of an investment fund that will 
deliver money yearly for buildings and equipment.

But Labor has criticised the spending for being too late, ignoring the 
trades sector and not boosting funding on broadband infrastructure.

The study, supported by the Committee for Economic Development of 
Australia, also says the nation must boost investment in infrastructure, 
including water, energy and transport networks.

Australia ranks 21st on telecommunications infrastructure.

Weaknesses include a ranking of 42nd on internet costs and 38th on 
mobile telephone costs.

Australia is ranked 24th on number of broadband subscribers, 26th on 
technology skills and 18th on investment.

"The rankings continue to show the Australian economy performing solidly 
by world standards," CEDA chief executive officer David Byers said.

"But it is not clear that we are laying the foundations for future 
economic success.

"Over the past year, Australia has begun to focus more closely on the 
performance of its education systems.

"We need more attention still. The quality of Australia's human capital, 
the skills of our people, will drive our success."

Australia's overall ranking slipped from sixth to 12th on the listing of 
55 nations, but that assessment was distorted by News Corporation's 
decision to domicile in the US.

When compared with other nation's in the Asia-Pacific or those with more 
than 20 million people, Australia performs well, ranked third in both 
categories.

Australia ranks 23rd on public spending on education and 10th on 
universities contributing to competitiveness.

The skills shortage is also a concern to businesses surveyed, with 
Australian ranking 40th on a list of nations experiencing a shortage of 
engineers.

Communications Minister Helen Coonan said Australia's ranking was ahead 
of Britain, Japan and South Korea -- which have a high-speed broadband 
network -- "which demonstrates the strength of the Australian economy".

She noted CEDA had recently praised the Government communications 
policies, including the Broadband Connect program for regional broadband.

Opposition communications spokesman Stephen Conroy said the report 
showed how badly Australia needed a $5 billion taxpayer subsidy under 
Labor's National Broadband Network.

"This report adds to the chorus of experts warning that the quality of 
Australia's communications infrastructure is holding this country back," 
he said.

"It's an embarrassment that a wealthy country like Australia is ranked 
just 21st in the world for our technological infrastructure."


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Regards
brd

Bernard Robertson-Dunn
Sydney Australia
brd at iimetro.com.au