This appeared last week.
The NBN predictions made in a 2013 report that did not happen
Remember when we were told we’d save $3800 a year by 2020 thanks to the NBN? Things didn’t quite work out the way a 2013 report expected.
Back in 2013 when Australians were grappling with whether to support the huge investment in the National Broadband Network, the deal was sweetened by the promise of $3800 a year in benefits.
A Deloitte Access Economics report, commissioned by the government and released ahead of the federal election, estimated Australian households would benefit to the tune of $3800 a year by 2020.
The report looked at six areas including communications, e-commerce, online services, employment, travel savings and quality and price changes.
Some of the savings would be financial but others were linked to time savings thanks to the ability to work from home and access to online government services.
So with the NBN due to be completed next year, did the mega project deliver on its promises?
WHAT THEY PREDICTED
The 2013 report from Deloitte Access Economics estimated there would be an annual benefit of $3800 (in 2013 dollars) to Australian households from the NBN in 2020.
It predicted households would save an average of $2400 thanks to the NBN and $1400 in other benefits such as travel time savings and the convenience of e-commerce.
One of the most significant benefits was expected to be improved communication opportunities, including better internet phone calls and video calls, which was estimated to save households about $74 a year.
Time savings from being able to buy goods online was estimated at $156 per household, while the increased competition from an increased choice and variety of goods was estimated at $453 a year.
Access to online services such as movies and games was expected to save households $269 a year. There would also be a $217 saving from people not having to travel thanks to e-education, e-health and e-government services.
The ability to work from home was expected to save households $253 in travel costs and an extra $381 benefit was generated by telework’s potential to create more jobs and to increase the number of people working.
However, the biggest boost came from increases to business productivity, with households expected to gain about $2000 a year thanks to price reductions, improvements in quality, changes in wages and earning higher profits from businesses they owned.
The report noted many of the benefits of broadband would not be visible to households but would gradually emerge as consumers found price discounts and variety online, more people started to work from home and as people got used to accessing services online.
Benefits would vary among different households, with rural and regional areas gaining value from certain changes that those in cities may not.
There is vastly more here:
What to say other than to point out what rubbish some of these business cases that Governments then spend billions of dollars on can be pretty much rubbish.
Would be nice to see the business case on the PCEHR / MyHealthRecord to see how far off the mark is was – assuming it / they ever existed!
David.
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