Global digital economy is a rapidly growing arena in the 21st century. To foster global competitiveness, nations have ventured into ICT. Several countries have prioritized the establishment of a wide ICT infrastructure to give comparative global advantage (Curtis 2003). Investors have been agitating the laying of the infrastructure; they argue that it will induce more investment in the coming future by easing and providing a quality communication facility.
Broadband network is the newest technology seen to secure and protect the competitive nature of economies. With its connections all over the world, internet is viewed as being always on standby for use. Broadband has a speed of 256 kbps as its minimum; it supports a huge number of applications and offers quality.
Broadband is unique in relation to incumbent telephone communications in relation to provision of value. Broadband does not provide immediate satisfaction, but its interactions with user applications and provision of internet services create amazing benefits to the user (Tilton 2004).
The impact of broadband in an economy depends on a number of factors. First, the business environment is paramount; this relates to the extent of computer penetration, the presence of expertise and flexibility of organizations to embrace the new technology. In addition, the impacts are interlinked to the regulatory framework of a given state. The framework normally relates to the security of online business transactions and the laws governing the transfer of money over the internet.
The extent of other infrastructure i.e. electricity is very important in accessing the impacts of the network in an economy. Given wide area coverage of electricity, the impacts will be large as many individuals will have access to computers. Lastly, the extent of ICT literacy is a very important factor; illiterate persons are unable to contribute massively to the economy.
Broadband has transformed the way people; businesses, governments and the society do its activities. The unique speeds have led to effective communication through reliable internet speeds, making the world a global village where information and relevant data are exchanged with ease.
The availability of government documents online with ease has reduced the traditional paper work, and this can be seen on how the government has incorporated the broadband services on its institutions. Investments on the other hand are able to do their daily online transactions in an efficient manner as the speeds are rapid and there are no delays in transactions. Investors were among the groups that fought for the laying of these broadband technologies.
The online banking business has also improved with the ultra fast speeds of broadband (Tilton 2004). This has encouraged the doing of business and bank revenues have gradually increased. Customers are also able to transact with ease leading to increased satisfaction of the online clients.
Broadband usage calls for wide knowledge from the users. The need by firms to enjoy a competitive advantage over other word competitors has necessitated training of its staff on the usage of not only computers but also the internet.
The general awareness is also necessary for citizens to fully take advantage of the network This has therefore led to the establishment of ICT institutions to help develop skilled manpower to use the amazing internet services.
The schools are open to the public and business individuals as its sole aim is to spread the ICT gospel. The integration of ICT to school curriculum is another move seen to help nurture the future ICT specialists. The establishment of learning centers has also called for government subsidy.
This subsidization will go a long way in provision of computers to be used in the training (Hirst & Harrison 2007). From the aforementioned issues it is observable that broadband has led to the growth of Australia education sector. Moreover, it has eliminated illiteracy to a large extent.
Information technology sector contributes largely to the gross domestic product of Australia. Broadband has had a huge impact in the creation of new employment opportunities. The opportunities cut across both the private and public sectors. Many ICT firms have been established to provide consultancy and other support services to the business community and the government.
The firms have also helped absorb the unemployed youths, bringing down the unemployment figures. The quality of services and advantages derived from the broadband network has also led to establishment of new business ventures. Many banking institutions are willing to offer loans to individuals who intend to venture in the ICT sector (Barr 2000d).
This is because the sector growth has been on the rise. With the help of these loans, individuals have been encouraged to establish new businesses, which have increased employment opportunities. More other people take advantage of the broadband speeds to make a living.
Emission reduction is another effect attributable to the broadband network. With the ease in communication and transfer of data, the environment is conducive as it leads to pollution reduction. Broadband has enabled individuals transact business at their comfort discouraging movement.
Investors are able to monitor their businesses online; customers also can acquire products by making orders online. This has helped reduced movements of persons and goods delivery is at a convenient time. Business officials are able to work outside office and still ensure smooth operations of their ventures, thanks to the broadband network.
Moreover, this has fostered good health of the Australian citizens, reducing their medical expenses. With increased income, individuals are able to increase their consumption and increase economic growth in a wide margin (Hirst & Harrison 2007).
With over 9% of Australian population subscribing for broadband, economic growth is viewed to be in a rapid stimulated path. Broadband has reduced the cost of doing business (Curtis 2003). This is eminent in the cost per unit of production and it reduces the operational costs of firms.
This has therefore helped increase the revenue generation of not only large firms but also the smaller ones that have integrated their systems with the technology. The high speeds and efficiency provided by this network has made firm products affordable to the end user. This is because of their speeds in downloads and the number of applications they can accommodate.
Regulatory improvements are paramount to help streamline the usage of broadband. Australian policy makers have devised provisions to guide in the daily usage of this network. The regulations are to guide not only the business transactions but to check other vices that come with technology.
Banking systems and e-commerce are the main sectors targeted by these regulations. The banking online transactions have to operate in relation to banking transactions and ensure they follow the code of conduct set by the monetary regulator. The transfer of ownership of online purchased goods also needed regulation to ensure both the business people and the customers do not feel conned at the transaction process (Curtis 2003).
The broadband initial strategy was targeting critical areas to harness the potential economic drivers first. Health sector was a vital area. The government’s strategy was to ensure health care, which is a backbone to the welfare of the citizens, has a good and powerful integration to help it monitor its operations.
A public internet access center is another area where the broadband was targeting. These are locations where the general population access quick and affordable internet. These are cyber cafes, and information centers and it has helped citizens, in a huge way, who could not afford to subscribe to these services (Tilton 2004).
Broadband has widely influenced the operations of the government. The establishment of e-government has enhanced communication within governments’ ministries. Ministries are able to share vital information amongst themselves and other government departments.
The public through this adopted initiative are able to use and check government operations online. This has made the citizens be part of the governance system as their online contributions to government policies are considered.
Initially it was hard to obtain government information publicly at the click of a button but the coming into force of broadband has enhanced it and fostered transparency and accountability of government officials (Barr 2000c).
The availability of information to the public has also helped the citizens develop a broad knowledge of government’s activities and become more conversant with the obligations of the government to the state.
The expansion of both ICT and electricity infrastructure can be viewed as one of the great impacts of broadband. The ICT infrastructures are vital if the network services are to be enjoyed. This is meant to increase the broadband subscribers. Broadband connection per unit will tend to reduce if there are a good number of subscribers to the service. Consumers mostly consider data costs before requesting for the services in accordance to their utility.
This headache calls for efficiency in the quality of services to the already subscribed clients. The entire Australian population will enjoy the service. Moreover, job opportunities will be created in the region because of expansion. With increased customer subscription to the network, the government will increase its revenue. In addition, minimum internet cost realization is paramount by improving the uploading and downloading speeds in the broadband network (Barr 2000a).
Together with the local advantages, the broadband network has put Australia in the world digital global map. The network has enhanced the competitive edge of Australian companies globally; e-banking and commerce are two areas that have generated many funds to local and foreign investors.
This has largely helped in the diversification of products by firms. The products are designated for both the local and international markets. International companies are managed from the mother company (Barr 2000a). This is possible as instructions are given online and activities checked using the same.
Business meetings may be held at the same time at different locations and with the usage of broadband, ideas are exchanged real time. This has helped in cutting down the operation costs of companies as staff of one firm can be running operations of a number of other companies.
Broadband network has transformed the Australia economy positively in a large way; however, it has posed several other negative impacts. The network has exposed several citizens to online security threats. Many companies online masquerading to be service providers of various goods and services have conned individuals not only money but also personal information.
This customer information, which is in wrong hands, can be exchanged illegally to skew operations in the market (Barr 2000d). It can also be a threat to individual life and future transactions as their data is prone to commitment of crimes. Without addressing the aforementioned issues, there will be an erosion of customer confidence. Moreover, hackers will be tempted to crack into company systems and sabotage transactions (Barr 2000b). These developments will affect the economy negatively.
In conclusion, broadband has transformed Australia in a magnificent manner, its effects is felt in every sector in the economy. However, the insecurity calls for extra effort not only from the government but by all stake holders.This will ensure that confidence on this network is build by closing all loopholes which discredit it.
To achieve this, the government needs to invest in the ICT research to be well versed on how to address different security issues at different times. In addition, enhancement of ICT infrastructure is paramount to the rapid economic development of Australia.
Partnership with the private sector will in a large extent enable the realization of this plan. When many customers subscribe to the broadband services, the government will be able to earn extra monies in form of taxation while also allowing creation of job opportunities. Other industries in the economy will grow together with these expansions; this will ensure the nation stays in a competitive position with the outside world.
List of References
Barr, T. 2000a. newmedia.com.au: The changing face of Australia’s media and communications, Allen & Unwin, Sydney.
Barr, T. 2000b, ‘The telecommunications policy process’, Media International Australia incorporating Culture and Policy, no. 96, pp 103–108.
Barr, T. 2000c, ‘New medium, new messages: compared with traditional media, the internet is unregulated’, The Age(Melbourne), p 10.
Barr, T. 2000d,”Communication beyond 2000: Technology, industry and the citizen in the age of globalization.” conference paper presented to the International Association for Media and Communications Research (IAMCR) Conference, Singapore.
Curtis, T. 2003, ‘The International Telecommunication Regime in the Information Age’ in Prometheus, vol. 21, No. 4. pp 399 – 414.
Hirst, M. & Harrison, J. 2007, Telegraphy, the talking wireless, and television’ in contemporary communication, Oxford University Press, Melbourne.
Tilton, M. 2004, “Capitalism in the information age: Japan and the politics of telecommunications reform.” Japan Policy Research Institute Working Paper, no. 98. Web.