Impact of National Broadband Network on Financial Sector

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* Executive Summary This report aims to identify and explain the implications and microeconomic impacts of the National Broadband Network (NBN). This report also explains how NBN will help businesses to implement innovative and efficient business processes to increase revenues, competitiveness and productivity that will further drive the economic growth of Australia. The report will briefly compare the impacts of NBN to financial services sector in Australia and how financial services sector can benefit from the implementation of NBN in long run. This report aims to cover the supply side elements of NBN i.e. increased penetration of ICT to meet the demand side elements created by Private and Public sectors, thereby, feeding the benefits…show more content…
NBN and the Australian productivity In April 2009, Federal government took the bold step to announce the single biggest infrastructure investment by any Australian government to build National Broadband Network (NBN). NBN has the potential to deliver benefits equivalent to the benefits delivered by other technology milestones in past two decades such as widespread adoption of computers and mobile phones. NBN rollout aims to improve the quality and speed of broadband significantly compared to what is available currently to most consumers and business in Australia. NBN rollout will also prepare Australia to withstand any future infrastructure challenges. In the past decade, Australia’s productivity growth, the main driver of growth in income in 1990s, has not only slowed down but also fell below its long-run average as shown in Chart 1 below (OECD, 2012). Chart 1 Source: OECD, 2012 Multifactor productivity slumped to its lowest level in all sectors (chart 1). In order to improve productivity growth in Australia, it has been recommended in various publications and speeches that Australia should look at Infrastructure investment which is important for productivity, given its direct impact on volume of capital stock and its indirect effects on efficiency (PC, 2009). The report will explain the drivers of economic growth in detail as mentioned in Chart 2 below Chart 2
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