Senator the Hon Stephen Conroy

Minister for Broadband, Communications and the Digital Economy

DEPUTY LEADER OF THE GOVERNMENT IN THE SENATE

Address to the Korea-Australia-New Zealand Broadband Summit, Seoul, Korea

Thursday, 19 June 2008

I want to thank the Korean Government for hosting the Summit.

I congratulate Chairman Choi and the Korea Communications Commission for organising a highly successful OECD Ministerial Meeting on the Future of the Internet Economy.

I would also like to acknowledge the Australia—Korea Foundation—particularly Professor Mike Miller—for bringing this Summit to fruition.

This event is a platform for building collaboration between our business and research sectors in the field of broadband and digital technology.

It is also is an opportunity for companies and those involved in research and development to come together and determine priorities for the future.

In April this year I spoke at the APEC meeting in Bangkok and noted how more than 70 per cent of Australia 's trade is with APEC member economies.

I commented that we are all engaged with similar challenges in adapting new technologies to our specific needs.

Regional cooperation on trade reform is occurring in recognition of the benefits of competition for all member nations.

APEC partners clearly understand the benefits that flow to users when suppliers com pete strongly to provide the most attractive services and prices.

And it is the role of governments to ensure the best services are provided for the communities we represent.

Shared interests

Each of our countries—Australia, Korea and New Zealand—has its own strengths but similar aspirations for the potential of broadband to profoundly change our economies and societies for the better.

I've seen that the high level of cooperation that characterised previous Summits has led to some very successful partnerships.

For example, there is the collaborative research project between Australia's CSIRO and the Korean Electronics and Telecommunication Research Institute.

They are exploring advanced techniques in fluid simulation that will lead to cutting edge capabilities in animation and motion picture special effects.

There is also the consortium formed by the Australian company mNet and the Korean firm WiderThan to provide mobile applications for Australia's Telstra mobile network.

Research and development is fundamental to making our economies globally competitive.

Advances in ICT can lead to much greater advances across all sectors of our economies.

I recently attended a showcase of research projects from the National ICT Australia research institute—known as NICTA.

This was an exciting glimpse of our digital future.

NICTA is developing products and services in areas such as wireless telecommunications solutions, embedded operating systems for mobile phone chipsets, digital-audio networking systems and internet technologies.

Commercialisation activity has increased as NICTA builds on its already impressive patent portfolio.

In March, NICTA announced that its newest subsidiary company is commercialising technology that can improve the speed of optical networks carrying internet traffic.

This, of course has implications for the delivery of broadband and it links in with the Australian Government's broadband agenda.

In fact, NICTA is making a significant contribution to the Government's ICT and digital economy policy platform.

Education, infrastructure, innovation and effective regulation are all components of this push.

I find it fascinating to hear researchers at the coal face of innovation talk about where they see technology taking us into the next decade.

We are not far away from revolutionary changes in health care and education.

There is also the potential for a much cleaner world—where ICT drastically reduces energy consumption, improves public transport and even removes the need for work-related travel.

One prominent Australian report estimates that next generation broadband can reduce or avoid the release of greenhouse gas emissions by almost five per cent or around 27 million carbon tonnes.

These visions of the future highlight the importance of research and innovation.

And what's very clear is that the internet—and broadband in particular—leads to increased productivity.

Connected office workers have a world of knowledge at their fingertips saving them time and resources in accessing important information.

Service-oriented businesses can use Voice Over IP to reduce phone bills and to cut down on travel through desktop videoconferencing.

Manufacturers and retailers can use Radio Frequency Identification tags to improve efficiency in supply chain management.

All of these applications lead to productivity gains and take us one step closer to a full digital economy.

My Department in Australia was renamed to put an explicit focus on our ambitions for the digital economy.

The Australian Government regards management of the digital economy as a key driver of economic performance.

It will have an effect on the lives of all Australians.

Growth of the digital economy is closely linked to our future prosperity.

The digital economy is the framework for future economic activity and social interaction.

Around the world, policymakers are grappling with how to harness the benefits of the digital economy and deal with the challenges.

Countries that do this most effectively will prosper.

Those that don't or can't, risk being left behind.

In many ways, the digital economy is already booming.

ICT is already entwined in our economic and social fabric.

Areas as diverse as financial markets, government services, social networking, agriculture and entertainment are becoming increasingly dependent on ICT.

New services and applications are increasingly viewed as essential by consumers and businesses.

You do not have to look far to see this.

Businesses are using ICT and the internet to revolutionise systems and processes to improve efficiency and promote innovation.

Perhaps some of the most exciting possibilities ahead of us are in the education and health sectors.

Schools and universities increasingly use the internet for education and research.

There are vast distances between many of the major population centres in Australia.

Using the internet, students in Australian universities can access audio or video recordings of lectures and join in online classroom discussions.

When the National Broadband Network is completed this will be possible regardless of location.

The same technology that has opened up distance education in Australia has also given our universities the scope to market their courses to students in Asia, the Pacific and beyond.

In a similar way, the internet has multiplied the efficiency of collaborative research, accelerating the development and availability of scientific breakthroughs.

Every country understands that investment in education leads to broader economic benefits.

In Australia, we are determined to equip current and future generations with the best possible technological opportunities to make an effective transition towards a knowledge-based economy.

Improvements in ICT—supported by widely available and affordable high speed broadband—will further open up the possibilities for improved education and the benefits that follow.

In the e-health sector, Australia is also on the cusp of exciting developments that will help us overcome the problems of distance.

Some Australian doctors and hospitals are already using online technologies to perform remote diagnoses of patients.

High quality video-conferencing allows ‘real time' interaction between patients and doctors in separate locations.

This type of program is particularly important when you take into account Australia 's geographical size and the shortage of medical specialists.

The social benefit is enormous.

And there are huge economic savings—particularly for countries such as Australia with ageing populations.

But harnessing all the potential of the digital economy relies on providing access to fast and affordable broadband.

Broadband: the digital driver

This is critical for Australia's long-term economic prosperity and international competitive standing.

But it will also prove critical for promoting social cohesion, and even cultural understanding.

It is useful to look at some statistics that show just how technology is becoming an integral part of the lives of people all over the world.

As at March 2008, there were more than 1.3 billion internet users worldwide.

And more and more of these people are going online to do business.

Over 25 per cent of people in the OECD ordered goods or services online in 2007, while over 30 per cent of the OECD population performed online banking activities.

But the internet is also helping people in more intangible ways.

I note that here in Korea—with your exceptionally high proportion of connected households—users report the benefits of convenience, promotion of civic rights, participation in politics and an increase in leisure time.

In the 2008 Digital Future Project—a study of internet usage in the US—45 per cent of users said the internet was important or very important in helping them to maintain social relationships.

These figures suggest that we are in the process of a profound social and economic transition.

The Australian Government's vision for the transition to a digital economy is based on a number of clear and sound policy principles.

Australians should have access to the best infrastructure and services possible.

Connectivity should be available to all Australians—no matter where they choose to live or work.

And the affordability of services—including for disadvantaged members of our society—is a critical element and an important policy focus for Government.

The Australian Government has a number of programs to meet these objectives and—in particular—stimulate the uptake of broadband in regional and rural areas.

National Broadband Network

The Government's policy for a National Broadband Network has received a lot of attention.

Before the election we committed up to 4.7 billion Australian dollars to help ensure a high speed broadband network connects to 98 per cent of Australian homes and businesses.

The widespread availability and affordability of first-class broadband services is a first-order priority for the Government.

The National Broadband Network will be the foundation infrastructure that supports services and applications that people need now—and innovations that emerge in the future.

It will stimulate a more innovative market—one that delivers new and exciting applications to Australians at prices that represent value for money.

Clever Networks

To maximise value from existing and planned broadband infrastructure the Government is providing 118.6 million Australian dollars for local broadband projects.

This program aims to promote the use of broadband to improve access for rural and remote communities to government, health, education, emergency and community services.

One of the 49 projects funded by the Government is the Clever Health project run by the Grampians Rural Health Alliance Network.

This will use wireless broadband to link patients in emergency care via video conferencing technologies with the appropriate healthcare expertise.

The project will also increase professional development opportunities for healthcare workers.

In another example, the Learning Place Access Enhancement Project will enhance existing broadband infrastructure in remote areas of the state of Queensland.

This will provide a better educational experience for over 7000 students scattered in isolated residences across one of Australia 's largest states.

E-Security considerations

The National Broadband Network will be a key driver in Australia's transition to a fully-fledged digital economy.

Yet along with many of the opportunities that come with a connected world, there are risks and dangers that we need to address.

Emerging e-security threats and vulnerabilities pose a challenge to the effective and efficient use of new technologies.

These have an effect on consumer confidence.

Governments and the private sector have to work together across jurisdictions to improve cyber-security and combat spam.

We need to work together to protect privacy, consumers and minors.

Home users, students and small businesses are the most vulnerable segment of the Australian digital economy.

They need to understand these security risks and have the tools to protect themselves from threats.

This is vital to maintaining trust and confidence not only in the internet, but within the wider digital economy.

The Australian Government has an integrated approach that addresses e-security risks to government networks, critical infrastructure, home users and small businesses.

We are educating parents, children, teachers and business on the risk of online engagement and equipping them with the skills to avoid dangers.

And we are working with industry on priorities for action.

We are also conducting research and keeping abreast of world trends for cyber-safety and e-security.

Our priorities in protecting Australia 's communications infrastructure are:

• to reduce the e-security risk to government information and communications systems
• to reduce the e-security risk to Australia 's national critical infrastructure
• and to enhance the protection of home users and small and medium sized businesses from electronic attacks and fraud.

Parents and teachers must have confidence in the internet as a valuable educational and social tool for children.

The Government's cyber-safety policy focuses on education, research, and law enforcement.

It also focuses on managing current threats through technical mechanisms such as ISP-level filtering of illegal material including child pornography.

We have a range of awareness and education measures that are aimed at teaching a generation of children to be good cyber-citizens.

Conclusion

Nations everywhere know that the innovative use of new technology is a huge part of increased productivity and continued economic growth.

As I have set out today, the Australian Government is pursuing a coordinated approach to ensure we have the infrastructure, confidence, skills and regulatory environment we need.

By doing this we can create a foundation for economic prosperity for the decades to come.

Over the next two days, Australia, Korea and New Zealand have the opportunity to strengthen old ties and forge new ones, and to elevate our partnership to a new level.

I am pleased to see some of our most innovative ICT researchers and companies here today to engage with their counterparts from Korea and New Zealand.

I trust that you will make new connections and find new business and R&D developmental opportunities.

The future of broadband in our three countries looks very bright.

Thank you very much for this opportunity to emphasise the Australian Government's commitment to the Broadband Summit.

I urge you all to make the most of this opportunity and I look forward to the outcomes achieved over the next two days.

Thank you