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2009-05-05

Let's be "first things first" on the Ruddnet please, Mr Colless

Comments on “Ruddnet divides a nation” by Malcolm Colless, The Australian, 5/05/2009, on http://www.theaustralian.news.com.au/story/0,25197,25429083-7583,00.html

Your statement that "Who will be able to tap into this upgraded communications delivery pipe is clearly a key component of the Government's $43 billion broadband strategy" and the whole article seem to miss even a big point, that is, how many users will be able to afford to use at a reasonably expected rate of commercial return to investment. The political economy of cities versus rural is important and the government has to consider its implications carefully. But it has to be premised on the commercial feasibility of the whole project, unless the government is so fool-headed that it ignores the commercial reality of the project.

While it might be very attempting to build and have a grandeurs, “state-of-the-art, world's-best, communications platform for Australia”, one has to be realistic and rational using sound economic and business analysis, and resist the urge to instinctively go for the best technologically but very poorly economically, no matter how uncomforting it may be. The issue of the nation’s “affordability” is far more important than the secondary political economy consideration of city versus rural divide. And it is even more pointing at a time of great recession and ever ballooning government budget deficit.

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