Broadband Bottleneck: History Revisited

Abstract

The vexed issues currently surrounding broadband policy in Australia remind us that the public sector has a great track record in building valuable telecommunications infrastructure. One lesson from the past 150 years is the constructive role played by the public sector by providing the vision and seeding capital for the creation of three major communications platforms: Australia's overland telegraph in the 1870s, communications satellites funded by the National Aeronautics and Space Administration (NASA) from the 1950s, and the early internet, funded by the US government from the 1960s to the 1990s. But times have changed and new policy models have emerged. Australia's telecommunications public policy decisions during the past decade have locked us into having few choices for broadband. The sad irony to date is that the introduction of the open competition model in July 1997, its associated regulatory framework and the full privatisation of Telstra have actually made us less efficient in investment and impeded the development of the broadband networks we need. We might just benefit from revisiting some lessons from history.