Impact of National Broadband Network on Financial Sector

This report will show an overview of the current state of the Australian economy and its management by the Federal government through examining economic indicators such as economic growth (GDP), unemployment, inflation and trade.

Between 2000 and 2016 Australia underwent the most dramatic mining increase because the Victorian gold rush. Investment in the sector, widely defined, quadrupled. The additionally fuelled growth in a huge vary of industries servicing the sector, in particular engineering construction and business services.

Australia has also experienced a rising terms of trade to 130.0 in late 2011 due to the commodities boom as a result of the industrialization of the BRICs, whereby Australia has experienced high export and national income, but has resulted in less competitiveness in other sectors due to the high AUD, causing the ‘Dutch disease’ whereby non-commodity sectors lose competitiveness. Similarly is can be seen in its narrow export base whereby in 2012-13 one third of export revenue came from coal and iron ore ($96 billion from 300 billion), furthermore 57% of Australian export revenue is made up of mineral and energy exports, whereby Australian growth has been largely fuelled by commodity exports and mining boom.

Income inequality is the unspoken truth of American life. Millions of Americans live in poverty while the minority holds the majority of the wealth. This problem has become more severe in recent years, with the wealth gap increasing exponentially. While innovation drives economics in the free market, recent innovations have caused the wealth gap to become skewed. Broadband Internet is one particular innovation that has spurred economic growth but has hurt the lower class. Broadband Internet can be defined as “768 Kbps download and 200 Kbps upload” (Dunbar). Although there are many varying classification of broadband Internet, this definition will be utilized for the purposes of this paper. The non-adoption of broadband Internet by those living

The Australian PMI has been mostly below 50 with an average of 47.98 in past 12 months and an average of 47.94 this year, which suggests a likely contraction in manufacturing. Fluctuation is expected due to its volatile nature but a large percentage change is likely to drive the economy. A 14.03% growth in July is expected to lead to an increase in the coming month but contraction may continue in 2015-2016. From these PMI figures, Australia’s economy might not be performing at its best. The industry might suffer

Australia’s economic status can be assessed using a range of economic indicators such as unemployment rates, Gross Domestic Product (GDP), inflation rates and interest rates. The economy can affect Australian business’s greatly causing them to flow through the business cycle. The business cycle purpose is to describe the overall trends of the economy and can show growths of high or negative. The four stages in a business cycle are: expansion, this is when the economy has high demands; peak, this is the turning point of the expansions before the economy falls down. A contraction is when the demand for goods and services are low; and trough, is the opposite of a peak. To evaluate Australia’s current economic status factors such as unemployment

The benchmark investment rate in Australia was last recorded at 2.25%. Investment Rate in Australia found the middle value of 5.13 percent from 1990 until 2015, arriving at an unequaled high of 17.50 percent in January of 1990. Inflation Rate in Australia averaged 5.21 percent from 1951 until 2014. Customer costs in Australia rose 1.7% during the time to the December quarter 2014, the slowest yearly pace in more than two years as petrol costs dove. Australian yearly inflation rate abated to 2.3% in the second from last quarter of 2014 from 3.0 % in the past period, determined by a fall in cost of electricity, after the removal of tax duty on carbon discharge beginning early July. An alternate key variable that impacts the business is the unemployment rate. While the unemployment is staying high it is normal that RBA will keep the investment rates and trade rates low. Unemployment Rate in Australia diminished to 6.30% in February of 2015 from 6.40% in January of 2015. Unemployment Rate in Australia found to be in between 6.91% from 1978 until

First of all, economic growth is one of the macroeconomic objectives that the government wants to achieve as a primary goal and it happens when there is a rise in the enlarged product of population and per capita consumption. According to Hoover (2011), economic growth is the total material output of good values and service values in the market, measured by Gross Domestic Product (GDP) in a specific period of time. The growth of GDP is measured by excluding intermediate consumptions (production and resale), purely financial transactions and second-hand sales, which prevents double counting. To obtain an accurate value of economic growth, GDP needs to include the total output of expenditures and incomes.

Those who argue that the ending of mining is not the ending of the economy and that the construction investment could offset the mining sector slump may be misled. They, together with those who assert that the ongoing fiscal and monetary stimulus have ample powers to lift the economy should clearly realise the following: the plunge in mining investment, the down turn in construction industry, the restriction in fiscal and monetary actions all signal that the Australian economy is sliding to sluggish. This low growth condition will continue for several years to come; it seems there is no room for

Although many people say that “net neutrality has had no effect on the expansion of the internet”. In 2017 The Federal Communications Commission announced "For instance, several companies, including AT&T, Verizon, Frontier, and Alaska Communications either commenced or announced new deployments in 2017," the report concludes. "These new deployments are initial indicators that deployment is likely to accelerate again in part due to our recent efforts”. This tells us that companies are starting to accelerate the growth of their broadband networks to rural places in the United States. This is necessary due to people who have access to the internet have a higher achievement rate than people who did not. The Pew Research Center reported, “Roughly one-in-three adults with less than a high school education did not have access to the internet as a kid”. This is an astonishing statistic and net neutrality is stopping these companies from expanding so it is leaving some people in the dust with their education. Secondly, net neutrality slows investment by giving the companies no reason to invest in internet expansion because they cannot bring back the money that they put into the expansion. In 2017 wired.com did a report on internet expansion in rural areas and the report said: “investment in internet infrastructure declined 3 percent in 2015 and another 2 percent in

Telstra is Australia’s biggest telecommunications provider. Many Australians are familiar with the work of Telstra and their utilities can be found in most suburban houses. Stability in this company can be proven by the continuous uprising for the past four years. This rise will

Economic Growth refers to a nation’s outputs of goods and services over time. It is measured in terms of Gross Domestic Product (GDP) which is a valuation of a country’s total production in a year. In 2007-08, Australia had a GDP growth rate of 3.7%. By 2012, this growth rate had dropped to 3.1% despite the 20 years of continual economic growth in Australia averaging 3.5% up until 2012. Recent economic growth has been largely supported during the global resources boom where there was strong demand and increasing commodity prices of Australia’s mineral resources such as iron ore, coal, aluminium, copper and zinc. However, even though Australia has a very dynamic and developed economy there are still

The figure obviously had not return to pre-crisis level. Moreover, recent commodity prices had fallen significantly which will affect Australia’s short and long term economy.

Telstra is Australia’s largest and most efficient telecommunications company, which provides one of the best-known brands in the country. They offer a full range of services and compete in all areas of telecommunications both domestically and internationally. Telstra’s vision is to enhance its position as the leading full service telecommunications and information Service Company in Australia as well as to expand its presence internationally. (Telstra Website, 2008)

Telstra has a long history in Australia, starting together with Australia Post as an administration division, the Postmaster-General 's Department. Telstra is now completely privatized and has been going through a change to become more client oriented under its late CEO, David Thodey. New CEO Andy Penn is required to expand the attention on development in universal markets. The central government 's National Broadband Network (NBN) is making changes in the business and will see the organization logically offer its copper and HFC systems to NBN Co.