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Broadband Adoption by Agriculture and Local Government Councils Australia and the USA

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Broadband Adoption by Agriculture and Local Government Councils Australia and the USA Broadband Adoption by Agriculture and Local Government Councils Australia and the USA A report for the Rural Industries Research and Development Corporation and the Australian Local Government Association by Wondu Business and Technology Services August 2004 RIRDC Publication 04/127 RIRDC Project No WHP-7A © 2004 Rural Industries Research and Development Corporation. All rights reserved. ISBN 1 74151 035 X ISSN 1440-6845 Broadband Adoption by Agriculture and Local Government Councils - Australia and the USA Publication No. 04/127 Project No. WHP-7A The views expressed and the conclusions reached in this publication are those of the author and not necessarily those of persons consulted. RIRDC shall not be responsible in any way whatsoever to any person who relies in whole or in part on the contents of this report. This publication is copyright. However, RIRDC encourages wide dissemination of its research, providing the Corporation is clearly acknowledged. For any other enquiries concerning reproduction, contact the Publications Manager on phone 02 6272 3186. Researcher Contact Details Wondu Business & Technology Services Level 31, ABN-AMRO Tower, 88 Phillip Street Sydney, New South Wales, Australia Phone: 61 2 93692735 Fax: 61 2 93692737 Email: [email protected] In submitting this report, the researcher has agreed to RIRDC publishing this material in its edited form. Disclaimer For the past decade there has been significant change in the development of new information and communication technologies and more recently in the adoption of them by users for business and consumer purposes. The report aims to present an accurate picture of the situation and outlook for the adoption of broadband, but in such a fast- changing industry it is important to recognise that data, especially on prices and use of broadband, can quickly become outdated. We also used a number of publications from other research to improve our understanding of particular developments and issues and while we took care to ensure the authenticity of the publications we are not responsible for their errors and omissions, if any. The survey results were also affected by the sample size, and while proper survey and data-collection procedures were employed throughout, there are always some sampling and non-sampling errors. Non-response bias was a problem, more for the agricultural survey than the councils, and for this reason the agricultural survey results from Australia should be treated with caution. We have aimed to interpret the findings for users in a balanced way and to draw conclusions that will be useful and effective for decision makers. Readers should, however, be aware of the limitations referred to above RIRDC Contact Details Rural Industries Research and Development Corporation Level 1, AMA House 42 Macquarie Street BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604 Phone: 02 6272 4819 Fax: 02 6272 5877 Email: [email protected]. Website: http://www.rirdc.gov.au Published in August 2004 Printed on environmentally friendly paper by Union Offset ii Foreword The growing use of the Internet is providing rural, regional and remote areas with new opportunities to communicate, purchase goods and services and make use of applications that can reduce transaction costs, generate revenue and/or provide access to new forms of entertainment. The development of more data-intensive applications is stimulating demand for higher-speed access and technologies that do not occupy the voice lines. While there is collection of data at a general level on broadband adoption by the Organisation for Economic Co-operation and Development (OECD), the Australian Bureau of Statistics (ABS) and the Australian Competition and Consumer Commission (ACCC), there is less information at an industry and sector level and less information on what drives the adoption of broadband. This publication provides insights into the adoption of broadband by agricultural producers and suppliers, and local councils. It analyses data from surveys undertaken of producers, suppliers and local government councils in Australia and suppliers in the USA. The main objective was to examine adoption levels and identify differences between Australia and the USA and sectors within Australia, as well as improve the overall level of information about broadband adoption at an industry level. This project was funded from RIRDC Core Funds, which are provided by the Australian Government, for Sub-Program 4.3, Human Capital, Communications and Information Systems. The Australian Local Government Association funded the survey of Australian local government councils. A segment of the research culminating in the production of this report was funded under the Local Government Interoperability Framework (LGIF) project of the Australian Local Government Association. The LGIF program is supported by the Australian Government through the Networking the Nation Program of the Department of Communications, Information Technology and the Arts. The National Office of the Information Economy (now the Australian Government Information Management Office – AGIMO) also made a valuable financial contribution to the project. This project fits within certain key strategies of the RIRDC Human Capital, Communications and Information Systems Sub-Program, including: • Development of electronic communication systems with emphasis on responsiveness to farmers’ needs. • Investigation of rural social issues and issues relating to rural communities both in towns and on farms. • Evaluation of existing and alternative policies and institutions affecting the development of a more innovative rural sector. This report is an addition to RIRDC’s diverse range of over 1000 research publications, and it forms part of our Human Capital, Communications and Information Systems R&D Sub-Program, which aims to enhance human capital and facilitate innovation in rural industries and communities. Most of our publications are available for viewing, downloading or purchasing online through our website: • downloads at http://www.rirdc.gov.au/reports/Index.htm • purchases at http://www.rirdc.gov.au/eshop Simon Hearn Managing Director Rural Industries Research and Development Corporation iii Acknowledgments This study was undertaken with the assistance of Marketing and Research Associates in Sydney (especially Tracy Sheridan (Principal) and Samantha Parker (Analyst)), who carried out the significant survey task in Australia. The USA data-collection and analysis task was undertaken by the Center for the Study of Rural America at the Federal Reserve Bank of Kansas City (especially Mark Drabenstott and Jason Henderson, who also provided valuable information about a range of broadband developments in the USA, and papers on research undertaken by various USA analysts). We also met with various Australian broadband groups and attended several workshops and meetings with Paul Budde Communications Pty Limited. Paul also provided reports and updates on the constantly changing broadband industry in Australia. In late June we attended a briefing on powerline communications organised by Savant Corporation and Big Air. Tim Conway provided valuable insights into broadband developments in the EU and contacts with the UK Broadband Stakeholders Group (especially their CEO, Anthony Walker). We also met with the UK Department of Environment, Food and Rural Affairs (especially Nona Williamson and Tom Cunliffe, their e-business strategists) and the Oxford Internet Institute who provided details of recent research they had undertaken on Internet adoption in the UK. Paul Bennett edited the report and provided valuable advice on formatting and the general layout of content. The Commonwealth Grants Commission also agreed that we could include an extract from a recent publication of theirs on the speed requirements of different applications and the capacity of different technologies to meet these speed requirements (appendix 8). This data could be useful for people wanting to either use the ready reckoner developed as part of this study or to make general decisions about whether they need to adopt broadband. iv Contents Foreword............................................................................................................................................... iii Acknowledgments................................................................................................................................. iv Abbreviations and Glossary ............................................................................................................... vii Executive Summary ............................................................................................................................. ix Other matters in brief .......................................................................................................................... x 1. Introduction ....................................................................................................................................... 1 1.1 Objectives of the study.................................................................................................................. 1 1.2 Methods......................................................................................................................................... 2 1.3 Scope ............................................................................................................................................. 2 1.4 Broadband defined .......................................................................................................................
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