PRTODAY / NewswireToday Free press release distribution service network

Written by / Agency / Source: Frost & Sullivan

Check Ads Availability|e-mail Article


Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!

Frost & Sullivan Predicts Significant Economic Benefits from National Broadband Network but Cautions of Hurdles Ahead - Frost & Sullivan predicts that the Federal Government's proposed fibre-to-the-premises (FttP) National Broadband Network (NBN) can potentially deliver significant long term benefits to Australia's economy
Frost & Sullivan Predicts Significant Economic Benefits from National Broadband Network but Cautions of Hurdles Ahead

 

NewswireToday - /newswire/ - Sydney, Australia, 2009/05/11 - Frost & Sullivan predicts that the Federal Government's proposed fibre-to-the-premises (FttP) National Broadband Network (NBN) can potentially deliver significant long term benefits to Australia's economy.

   
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Cable/Satellite/Broadband Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Frost & Sullivan predicts that the Federal Government's proposed fibre-to-the-premises National Broadband Network can potentially deliver significant long term benefits to Australia's economy and that it will be an important element in building Australia's digital economy. However, it also warns that the NBN will face a number of challenges including the difficulty of achieving a return on investment, pricing for NBN access, and the growing migration from fixed line to wireless access.

The findings are contained in Frost & Sullivan's latest Asia Pacific Market Insight: Australia's new National Broadband Network - Will the massive investment pay off?

One of the earliest challenges confronting the NBN is the need to attract sufficient private sector investment. To achieve this, the Australian Government will need to explain how it plans to ensure sufficiently competitive pricing for high-speed broadband services to win over the majority of Australia's existing broadband users. Early analysis estimates that for the government to achieve even a modest return on its investment, the new NBN is likely to have to charge access prices to the wholesale network that would result in substantial increases in retail charges on current standard access broadband plans.

Similar investments in other national FttP projects have only so far occurred in countries such as Japan, Korea and Singapore, and centres such as Amsterdam, where the geography and demographics keep infrastructure costs lower and more manageable than is the case in Australia.

The government will need to consider the accelerating trend of users migrating from fixed to wireless broadband access. This is expected to continue over the next five years and Frost & Sullivan predicts that by 2013, approximately 30 percent of all broadband users will be reliant on wireless access services. This is likely to dramatically reduce the potential subscriber base for the NBN and could impact on the overall profitability of the project.

Competition from current high speed offerings, such as high speed cable access and ADSL2+ broadband which are now becoming more widely available, will also have some impact on the potential NBN subscriber base. Although typical average speeds through these offerings are far lower than the potential 100Mbps that will be available via the completed NBN, full implementation of the NBN is many years off and the lower speeds will be sufficient for a significant section of population over the next five to ten years.

Key among the anticipated advantages of the NBN are improvements in services such as e-health and e-learning, and the equitable delivery of services to rural and developing markets. The NBN will also pave the way for smart grids, whereby an intelligent IP overlay is placed over the electricity grid enabling utility companies to more effectively manage their networks.

The benefits of such grids include the ability to introduce smart meters which allow customers to more efficiently manage their own energy use and the potential for utility companies reduce their output of carbon emissions.

As the NBN will be an open network, it will be possible to build and deliver the infrastructure as a utility, thus making the services offered over the network more affordable to users. Its structurally separated model uses infrastructure companies to more efficiently build the physical network, and allows telco services companies to develop the intelligent network architecture on top of the underlying network. New services on applications are therefore provided to end users in the most cost-effective and efficient way.

Phil Harpur, ANZ Senior Research Manager, Frost & Sullivan comments, "In ten years time, we expect traditional telco services such as broadband access to account for a very small percentage of the total revenue generated via the NGN (next-generation network). The full benefits will come from the services supplied via the network, and these will continue to flow for a number of decades beyond the completion of the project. Perhaps the best way to look at the NGN is to consider it a stepping stone to the ultimate goal of an FttP network."

In addition to user and service benefits, Frost & Sullivan notes that the NBN will bring important changes to the Australian telecommunications service provider landscape. Once the network becomes fully operational, telcos such as Optus, AAPT and Primus will be able to compete on a level playing field against Telstra's retail division without needing to purchase wholesale access from the incumbent.

Under the NBN plan, optical fibre will run in parallel with Telstra's copper network. Control of the copper network to residential premises has historically been a key factor in enabling Telstra to maintain its dominance of the local access network. With the building of a parallel fibre NBN network directly to homes and businesses, Telstra's dominance of this section of the network will no doubt be eventually threatened. However, it is likely to take the government at least eight years to get its network fully operational, assuring Telstra of significant breathing space before it has to compete with other telcos for wholesale access.

Frost & Sullivan's market insight includes consideration of a possible restructure of Telstra, as recently mooted in a Government discussion paper. One option is the forced separation of Telstra's wholesale, retail and network divisions, and the possibility of having to sell its HFC (hybrid fibre-coaxial) cable network and its fifty percent stake in pay TV operator, Foxtel. A second option is an "operational separation", or the creation of a 'Chinese wall' between the divisions to ensure a higher degree of transparency. While the Government has raised the possibility of going down this path in the past, Frost & Sullivan notes that this time, it seems to have much more conviction behind its proposal, and ensuring some form of separation of Telstra's divisions is in line with its vision of a new network which gives equal access to all players on wholesale pricing levels.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

 
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Cable/Satellite/Broadband Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Written by / Agency / Source: Frost & Sullivan

 
 

Availability: All Regions (Including Int'l)

 

Traffic Booster: [/] Quick Newswire Today Visibility Checker

 

Distribution / Indexing: [+] / [Company listed above is a registered member of our network. Content made possible by PRZOOM / PRTODAY indexing services]

 
 
# # #
 
 
  Your Banner Ad showing on ALL
Cable/Satellite/Broadband articles,
CATCH Visitors via Your Competitors Announcements!


Frost & Sullivan Predicts Significant Economic Benefits from National Broadband Network but Cautions of Hurdles Ahead

Company website links NOT available to basic submissions
It is OK to republish and/or LINK any newswire for any legitimate media purpose as long as you name Newswire Today and LINK as the source.
 
  Is this your article?
Activate ALL web links and social stream by Upgrading to Press Release PREMIUM Plan Now!

Frost & Sullivan |
Publisher Contact: David Bass 
+61.2.9967.8022 david.bass[.]frost.com
 
Newswire Today - PRZOOM / PRTODAY disclaims any content contained in this article. If you need/wish to contact the company who published the current release, you will need to contact them - NOT us. Issuers of articles are solely responsible for the accuracy of their content. Our complete disclaimer appears here.
IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any Frost & Sullivan securities in any jurisdiction including any other companies listed or named in this release.

Cable/Satellite/Broadband via RSSAdd NewswireToday - PRZOOM Headline News to FeedBurner
Find who RetweetFollow @NewswireTODAY



Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!


Read Latest Articles From Frost & Sullivan / Company Profile


Read Cable/Satellite/Broadband Most Recent Related Newswires:

The GÖKTÜRK-1 Satellite Launched Successfully
Leonardo-Finmeccanica Announces Important Agreement on Space Cooperation Signed by Italy-Japan Business Group Chaired by Mauro Moretti
SaskTel Brings Netflix Access to InfiNET MaxTV Customers
Enel Open Fiber and The City of Bari Join Forces for Digitalisation
Windstream and EarthLink to Merge in $1.1 Billion Transaction
Defense Information Systems Agency Selects Windstream to Expand its Department of Defense Information Network
Windstream Launches Cloud-based Hosted Communications Solution for Small Businesses
Saskatchewan First Nations Band Offices and Tribal Councils to Receive Fibre Optic Technology
ManagedWay Chooses Windstream Wholesale to Provide High-speed Transport Between Metro Data Centers
Windstream to Expand Fixed Wireless Technology in 40 Markets Using CBNL Equipment and Straight Path Spectrum
Tele2 Receives Clearance to Acquire TDC Sweden
Windstream Connects Nearly 300 Department of Veterans Affairs Locations as Part of Agency’s Efforts to Consolidate Services
Tele2 Partner with CSL to Capture Opportunity as Analogue Devices are Upgraded to Digital Across Europe
Windstream Expands Metro Fiber Network in Minneapolis
Tele2 IoT Acquires Kombridge AB and Strengthens its Position within Security Services

Boost Your Social Network
& Crowdfunding Campaigns


LIFETIME SOCIAL MEDIA WALL
NewswireToday Celebrates 10 Years in Business


PREMIUM Members


Visit  JobsWare.com

Visit  BizJobs.com





 
  ©2016 Newswire Today — Limelon Advertising, Co.
Home | About | Advertise/Pricing | Contact | Investors | Privacy/TOS | Sitemap | FRANCAIS
newswire, PR free press releases distribution service magazines engine news alert newsroom press room breaking news public relations articles company news alerts newswiredistribution ezine bizentrepreneur biznewstoday digital business report market search pr firms agencies reports distri-bution today investor relation successful internet entrepreneurs newswire distribution prtoday.com freenewswiredistribution asianewstoday bizwiretoday USA pr UK today - NOT affiliated with PRNewswire as we declined their partnership offer in 2013
 
PRTODAY & NewswireTODAY are NOT affiliated with USA TODAY (usatoday.com)