[LINK] NZ study of value of faster broadband

[Jan Whitaker]

[This was done in 2006; one wonders how they set 
up the 'experiment'. If a business is sharing a 
single ADSL connection, the service would be 
crap. So having a bigger pipe to share would 
allow much faster performance at least as far as 
the transport element. There's nothing that can 
be done about slow response, overworked, and 
mis-programmed servers. There's also a bit of 
problem generalising what functionality is being 
used. Services that need more grunt, think video, 
could be done much better on these bigger pipes. 
Like many applications, the value depends on the needs of the business/user.]


Doubts on web speed benefits

http://www.theage.com.au/national/doubts-on-web-speed-benefits-20091102-hthh.html


ARI SHARP

November 3, 2009

THE productivity benefits of high-speed internet 
access may be a myth, according to a New Zealand 
study that undermines part of the Australian 
Government's justification for its $43 billion national broadband network.

The study found that while there were economic 
benefits in having slower broadband, such as 
ADSL, over dial-up, there was little extra value 
in faster forms of broadband, such as fibre optic cable.

The research found companies that took up slower 
broadband services, which are already easily 
available in Australia, achieved a 10 per cent 
productivity increase by using it to enter new 
export markets and purchase goods and services 
online, but there was ''no discernible additional 
effect'' gained from a faster connection.

The research was done by independent experts' 
group Motu Economic and Public Policy Research.

The researchers took data from a 2006 study on 
more than 6000 companies' internet connections 
and mapped it against administrative tax and 
employment information to measure productivity. 
It defined slow broadband as ADSL, typically 
offering three megabits-per-second, while fast 
broadband was mostly cable services offering 
eight megabits-per-second and above.

Current speeds in Australia are typically at the 
mid-single digits, but the proposed broadband 
network will offer speeds of up to 100 megabits 
per second to 90 per cent of homes and businesses.

The report criticised the lack of evidence used 
by policymakers in determining broadband plans, 
echoing a repeated line of attack from the Opposition in Australia.

''Despite articulate pleas for network upgrades 
to accelerate internet access, there is little 
rigorous research quantifying benefits to 
individual firms that arise from upgraded 
internet connectivity,'' the report said.

But report co-author Arthur Grimes, a University 
of Waikato academic who is also chairman of the 
Reserve Bank of New Zealand, said he was 
sympathetic to large-scale roll-outs like those 
planned on either side of the Tasman.

''But one has to be very, very clear in terms of 
thinking of where the benefits are going to come 
from,'' Dr Grimes said. ''There's a big 
difference between rolling out for firms in a 
CBD, and households 
 using broadband to gamble.''



Melbourne, Victoria, Australia
jwhit at janwhitaker.com
blog: http://janwhitaker.com/jansblog/
business: http://www.janwhitaker.com

Our truest response to the irrationality of the 
world is to paint or sing or write, for only in such response do we find truth.
~Madeline L'Engle, writer

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