Senator the Hon Stephen Conroy

Minister for Broadband, Communications and the Digital Economy

DEPUTY LEADER OF THE GOVERNMENT IN THE SENATE

Address to the Internet Industry Association Annual Gala Dinner

Friday, 22 February 2008

It is a pleasure to be here tonight with so many of the internet industry's leaders and decision makers.

At the beginning of this new government, I want to outline some of the goals we have for this important industry and some of the programs we are implementing.

We are very excited by and proud of the fact that this government has named a Department of the Digital Economy.

That is the level of significance we believe it holds now and going forward.

When it comes to Broadband, I think you will all agree that it is crucial to Australia 's future prosperity.

It is not simply a case of wanting faster and more affordable broadband; it is a case of needing it.

We hear again and again that we are in the midst of a technological revolution…a digital revolution.

We are experiencing massive transformations in health, education, entertainment…in fact in almost every facet of life.

The Digital Economy already provides a key basis for productivity and efficiency gains.

Australian Bureau of Statistics data indicates that internet income for Australian businesses increased from $24 billion in 2002–03 to $56 billion in 2005–06.

This makes it one of the star performers of the economy.

It is the potential of the Digital Economy that has the capability to drive all sectors in efficiency, productivity and innovation.

In the midst of this change, we need to know where we are going as we implement the policies and infrastructure that make us globally competitive.

That is why input and leadership from the industry is crucial.

Carlotta Perez, an economic historian at Cambridge University , says we are now in one of the five technological revolutions that have occurred since the late 18 th century.

According to Perez, the previous four have been:

• the industrial revolution;
• the age of steam and railways;
• the age of steel, electricity and heavy engineering; and
• the age of oil, automobiles and mass production.

Interestingly, each of these revolutions has followed a similar pattern and Perez says we are, right now, at a critical time for governments and for decision-makers.

The way we act now to harness the potential of technological change and the digital economy is one of our fundamental economic and social challenges.

Our future productivity, our ability to compete with global markets and our wealth creation all rely on a world-class communications system.

That is why this Government has committed up to $4.7 billion along with regulatory changes to facilitate the roll-out of a new, high-speed fibre-based broadband network in partnership with the private sector.

While the Government has insisted that the network will offer minimum speeds — and I emphasise minimum speeds—of 12 megabits per second to 98 per cent of Australian homes and businesses; we believe it could actually go much further.

To demonstrate how scalable and flexible a fibre network is, since Labor announced its policy in March last year, we have seen both Telstra and the G9 say they may bid with VDSL technology which could provide speeds of around 20 – 25 megabits per second.

The Government is looking for the best possible outcome from the National Broadband Network, and this will be achieved through an open, competitive assessment process.

I want to commend the industry for the leadership it showed in setting some targets for broadband at a time when no-one wanted to rock the boat.

In its report ‘2010 National Broadband Targets' the Internet Industry Association set a broadband target of 10 megabits per second for 80 per cent of the population.

I am pleased to say that we took these targets on board and the National Broadband Network will not only meet but exceed this benchmark.

Education is, of course, an essential part of ensuring that we take advantage of what technology has to offer, now and in the future.

At school, our kids are competing against children in countries where high-speed broadband is simply part of the furniture.

That is why this Government is implementing an education revolution.

We are investing $1 billion to ensure our secondary school students can participate effectively in the digital landscape and that as our next generation leaders they will have the skills to engage and drive the economy into the future.

A world-class education requires a world-class curriculum, delivered by well-trained teachers in classrooms that are fully able to engage with the online environment.

$900 million over four years will be invested in the National Secondary School Computer Fund to provide new or upgraded Information Communication Technology for secondary students.

And $100 million will support high-speed fibre-to-the-premises broadband connections to schools, or an alternative technology in remote locations where fibre is not possible.

We need to make sure our children have the skills and equipment they need to take part in the digital world.

These initiatives also bring into focus the need for a comprehensive approach to online safety and security.

Our approach to e-security includes a range of awareness-raising initiatives targeted at home users, students and small businesses.

These include:

• an annual E-Security Awareness Week with industry and community organisations;
• a National E-Security Alert Service for home users and SMEs to provide them with up-to-date information in plain English; and
• an e-security education module for Australian primary and secondary schools.

ACMA is also expanding the Australian Internet Security Initiative to address the emerging risk of computers which have become compromised through the installation of malware.

These infected computers can be remotely controlled by attackers for illegal and harmful activities such as sending spam and stealing personal financial information.

The computer and the internet are, of course, powerful sources of information and entertainment, but there is also potential for malicious behaviour and harmful effects, especially for children and teenagers.

Many parents are concerned about how easy it is for children to use the internet to access harmful content, and the potential impacts of this material.

The ACMA report, Media and Communications in Australian Families 2007, found two in five parents expressed some level of concern about their child's internet use, and they felt the internet was more difficult to manage than TV or mobile phones.

In the Symantec Internet Security Threat Report 2007, 46 per cent of children were found to be worried about online safety.

38 per cent of children under the age of 13 have purposefully visited websites they think their parents would disapprove of them visiting.

And with increased interaction through Web 2.0 applications, online risks have shifted from being just content risks to now include communication risks.

Today I publicly released a new ACMA report “Developments in internet filtering technologies and other measures for promoting online safety ”.

This report highlights that clusters of measures can be more effective in minimising risks than single initiatives.

This finding confirms the Government's position of developing a comprehensive strategy to tackle online risks.

During the election we announced our Cyber-Safety policy to tackle the on-line problems including such concerns as:

• cyber-bullying
• computer addiction
• online identity theft, and;
• online breaches of privacy.

While parents must stay informed and take responsibility for their children's activities online, parents rightly expect Government and industry to play a role in helping protect children.

Our comprehensive cyber-safety strategy is targeted to reduce communication risks through education programs which focus not only on children but parents and teachers.

The Government believes children should have the skills to:

• behave as responsible citizens,
• understand how their online actions may affect others,
• protect their identity online; and
• how to respond to incidents such as cyber-bullying or breaches of privacy.

Education resources will include improving the existing on-line safety website and developing a new children's cyber-safety website.

The resources will be age‑appropriate and on-line so that they are accessible to all.

We will also develop a child-friendly cyber-safety helpline and a simplified online reporting system.

In this fast-moving world, it is essential that government stays informed of developments so we can formulate appropriate policy responses.

To help with this, we will be forming a Youth Advisory Group made up of young people with a passion and interest in cyber-safety.

They will be aged between 12 and 18 years and will meet periodically with the Consultative Working Group (CWG) to consider cyber-safety issues, how best to address these and how best to communicate the cyber-safety message to young Australians.

The Consultative Working Group will be expanded to widen the scope of the cyber-safety issues it addresses and will be made up of industry, community and government representatives.

We will also support Australian research into the changing digital landscape, its effect on Australian children and the means to deal with cyber-safety issues.

This will help inform and fine-tune our cyber-safety program.

In order to address content risks, the Rudd Government has an election commitment to the introduction of ISP level filtering to reduce the exposure of children to illegal content that is identified by ACMA.

The ACMA blacklist of prohibited websites is currently compiled by a complaints-driven mechanism.

The list will be expanded through international co-operation.

The Government does not believe children using the internet should be exposed to this material.

Labor has never argued that ISP filtering is a silver bullet solution, but it is an important step in the overall strategy to make the internet a safer place for children.

I acknowledge industry concerns that filtering will affect internet speeds or will result in over-blocking or under-blocking.

These issues will be addressed through the trial process.

After the ACMA trial we intend to hold a pilot trial in a ‘real world' environment.

I can assure you that we will go forward through an informed, consultative and considered process to ensure that a workable solution is found.

This evening, I ask the industry to continue engaging with the Government and with my Department to ensure that we achieve an outcome for ISP filtering that meets the needs of industry and the wider community.

But ISP filtering is only one component of a program that involves education, international co-operation, research and law enforcement activities.

As I said at the outset, the digital economy is the transformative driver of our age.

Its impact and its benefits continue to spread, but its real potential remains largely unexplored.

It is the key long-term economic and social challenge, not only in this country but around the world, and the actions we take now will dictate just how much we benefit from the period to come.

I want to assure you this Government is determined to meet the challenges of the digital economy.

Thank you for this opportunity to outline some of this Government's goals.

I am very much looking forward to working with you all in the coming months and years as we set our nation on a course to succeed.

Thank you.