Council on the Ageing (Australia)
Submission
to
Broadband Advisory Group
August 2002
Council on the Ageing (Australia)
Level 2, 3 Bowen Crescent
Melbourne Victoria 3004
Phone: 03 9820 2655
Facsimile: 03 9820 9886
Email: cota@cota.org.au
www.cota.org.au
COUNCIL ON THE AGEING (AUSTRALIA)
BROADBAND SUBMISSION
THE WORK OF COUNCIL ON THE AGEING
The Council on the Ageing (COTA) is the peak consumer organisation dedicated to
protecting and promoting the well-being of older people. It has the members, skills,
knowledge base, and resources to support this role. The Council on the Ageing (Australia)
has a number of functions including:

policy analysis and policy development

provision of information and advice to older people on Commonwealth policies and
programs

provision of information and advice to the Commonwealth Government about issues of
importance to older people based on consultation with older people and research.
The Government provides financial support to assist COTA (Australia) in fulfilling its
policy, consultation, representation and information dissemination roles.
At the State and Territory level, COTAs are involved in both service delivery to older
people and policy work primarily focused on State issues. Individual members play an
important role in maintaining the State-based organisations. Through their consumer base,
State and Territory Councils on the Ageing provide the management structure for the
Council on the Ageing (Australia) and thereby inform policy and priorities.
COTA (Australia)'s membership includes key national organisations which represent
consumers and service providers. These organisations make a substantial contribution to the
Council's policy development process.
COTA's membership is open to people over 50 years of age. Our policy work covers a wide
range of issues of concern to this group: health services including private health insurance,
employment, financial services, retirement and pre-retirement incomes, aged and
community care services, housing, and information and communications technology.
COTA has both individual members, and organisational members which indirectly provide
a very large membership base. Whether members or not, many older people, their carers and
relatives as well as organisations come to COTA for information and advice and to alert us
to issues in relation to Government policies and programs. The Seniors Information
Services which COTA runs or auspices in most of the States and Territories field around
100,000 calls per annum.
Further information about COTA is available on our website: http://www.cota.org.au
Helen Scott, COTA A Information Manager, is primarily responsible for preparing this
submission which is based on research and consultations with the State and Territory
Councils on the Ageing, COTA Board of Directors and national member organisations.
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Introduction
Council on the Ageing welcomes the opportunity to comment on broadband issues to the
Broadband Advisory Group (BAG1) from two perspectives. The first is that of its
constituency of older people. The second is as a non-profit organisation in the community
sector. Community organisations are often the best means of providing information to their
constituents. They are also a means by which consumers access or learn to use on-line
services. Broadband, by allowing high speed data transfer, means for consumers doing the
same sorts of things as on dial-up, but better - more online news and information,
transactions and enhanced online shopping, content creation, e-learning, and new or faster
forms of entertainment (with the rider that downloading a movie-length video is not yet a
sensible option: "low quality and $85 a time" - Britton 2002 p13). For organisations and
businesses there are efficiencies and productivity gains to be made eg fast data gathering
and transfer, videoconferencing, virtual private networks, multiple connections,
telecommuting, telecom savings.
We note that neither residential consumers nor the community sector are represented on
BAG and consider this an omission to be remedied in the interests of "fostering
communication between stakeholders on both the supply-side and demand-side of the
broadband issue." (BAG Terms of reference)
Council on the Ageing has actively represented the interests of older people in accessing
affordable information and communications technology, and in policy for addressing the
digital divide. It is a member of the Australian Communications Authority Consumer
Consultative Forum, the Consumers' Telecommunications Network, and the Human Rights
and Equal Opportunity Commission / Australian Bankers' Association Accessible ECommerce Forum where we worked with other organisations to develop electronic banking
standards. Submissions, speeches and media articles are accessible on our website (see
http://www.cota.org.au/whatsnew.htm#Banking, E-commerce and technology access)
We have consistently argued that online access is already a requirement for full social,
economic and educational participation in the light of stated government and private sector
goals of electronic service delivery. Electronic commerce, or online commercial
transactions, has emerged as a major economic force. It is not just the purchase of goods
online, but also the electronic exchange of services, including information and knowledge.
Information literacy and use of the basic technology tools is a pre-requisite skill for
participation in Australia's economy and a matter for public policy. The reality is that people
without computer literacy, or at least literacy in technology, are already becoming second
class citizens. They are further disadvantaged by their inability to use computers to search
for a job, to broaden their education, to socialise, to conduct their banking needs, access
information or even participate as volunteers in community organisations. Broadband is
upping the ante.
1
Details and Terms of reference at http://www.noie.gov.au/Projects/consult/BAG/index.htm
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Older people on the wrong side of the digital divide
A priority in getting broadband access right should be in addressing options for large sectors
of the population still without any form of online access i.e. addressing the digital divide, by
regulating to encourage access and increase service diversity.
Older people are one group on the wrong side of the divide. Australia is amongst the leading
nations in Internet access but the current generation of older Australians (2.38 million aged
65 and over in 2001 - ABS 2002) has relatively low rates of use of electronic technologies,
and even lower rates of e-shopping and banking. Despite the fact that senior surfers are one
of the fastest growing groups on the Web (Scott, 1999; Australian Bureau of Statistics (ABS
2001b) figures show a 220% increase in Net uptake between May 1998 to May 2000 for
persons aged 55 or older), NATSEM projections of Internet connection rates led them to
conclude that retirees are the most disadvantaged of all population groups: 63% (or 1.9
million retirees) were projected to remain without an internet connection at home in 3 years
from 2000. (NATSEM 2000 p28)
Income inequalities abound - some groups are well-off (the over 65's head up households
owning almost half the deposits in the nation's financial institutions), but in fact poverty is
the reality for many - 48% of retirees are among the poorest 30% of Australians (ASFA,
2001). Most older Australians are on a low income - 75% of the eligible population receive
government pensions as their principal source of income (ABS, 2001a). It seems unlikely
therefore that at current costs older people will be broadband customers.
People with disabilities are also generally in lower socio-income scales bands of society
(HREOC 1999), but they are the very group who need affordable high speed connections to
take full advantage of the independence and equality offered by online access. The Human
Rights and Equal Opportunity Commission Inquiry into Accessibility of Electronic
Commerce and New Service and Information Technologies for Older Australians and
People with a Disability spelt out the benefits (HREOC 1999, 2000). If everyone gave
thought to their own ageing, the reality of age-related disabilities 2 and desire for adequate
access to technology in their own old age, logic suggests that consumer demand for
affordable broadband will increase. Hardly anyone will not be affected by disability, or
ageing, or both, at some time in their lives.
Barriers to broadband access
The term 'broadband' is in itself vague and not well understood in the community. It would
be useful if BAG would define what it means by the term, for example is it: "a high speed
connection greater than 2000 kilobits per second" ie 2Mbps (Jackson 2001, quoting the
ACCC), or Telstra's definition of above 128kbps, or the US Federal Communications
Commission's of over 200kbps?
2 Vanderheiden (1994) pointing to US studies states that by age 55, 25% of the population will experience
functional limitations, 50% by age 65 and 70% by the time we reach 70 years of age. Australian data shows
that 54% of over 65 year olds in 1998 had a disability, rising to 84% of people over 85 (ABS, 1998).
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The first broadband experiment, ISDN (Integrated Subscriber Digital Network 64kbit digital
service), has not been accessible to the general public, small business or community groups
for reasons of pricing. Australia recorded less than 0.1% of home Internet users using ISDN
(NOIE 2002). It is being overtaken by higher speed data services - DSL/Digital Subscriber
Line, cable, wireless, microwave, satellite, digital terrestial television/DTV, mobile phones each with their own pros and cons. Quite apart from the technology, the terminology, with
permutations like ADSL, SDSL, HDSL, VDSL, is opaque and confusing, and not only to
consumers. How many consumers know what amount of data a gigabyte provides?
COTA recommends that BAG consider a communications strategy for providing accessible
information to consumers, community and small business organisations with the following
components:




definition of terms;
community consultation strategies to ensure that the voice of the consumer,
including older people and those from educationally or financially disadvantaged
backgrounds, is heard;
resource community organisations to provide information to consumers;
(Resourcing community organisations to provide information, expertise and a
constituent audience via their networks is a proven and cost-effective strategy - Scott
2001a);
the Australian Communications Authority develop a broadband guide as part of
their consumer information campaign.
(Broadband is only briefly covered in the ACA fact sheet "Choosing an Internet
Service Provider", online at www.aca.gov.au/consumer/index.htm)
Despite the technical availability of high speed broadband options, mass consumer fast data
access is not a reality. At September 2001, only an estimated 5 per cent of Australians
accessing the Internet at home did so at high speeds, rating Australia equal 9th out of 14
countries benchmarked (NOIE 2002). (Other ABS and comparative OECD figures for
broadband connection are widely available, see for example Jackson 2002, NOIE 2002.)
As the Australian Consumers' Association points out (ACA 2000) "the issue for consumers
is getting connection - getting a service, not a technology", technology being merely the
enabler. High speed Internet services may be available but take-up is low because they are
priced too high, as premium products. The reality is that a new digital divide is forming
between narrow (standard dial-up) and broadband internet access.
Cost and affordability remain concerns for all online users, including dial-up customers,
but are major barriers to broadband services for households and community organisations.
Costs include not only set-up and ongoing monthly fees. Extra investment is required for
data security from an always-on connection, via firewalls for example. A real issue for
consumers and small community organisations is who to trust for advice and information
about the complexities of getting online, and particularly about broadband and data security.
IT firms, consultants and most available literature either in the press or online is targeted at
business, and even more at 'the big end of town'. More secure systems and cheaper open-
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source options such as Linux are not yet well-enough understood or supported for
organisations unable to afford in-house IT staff.
Early termination fees are another disincentive, locking users into a long-term contract.
The digital divide is raised another level by capped downloads and excess volume charges
of 14+cents per megabyte (or in the case of Optus reduced speed penalties). Consumers on
standard connections often breach 300mb limits (this is for example Telstra's limit on its
minimum cost ADSL connection of $54.95 per month). With speeds up to 30 times faster
this breach will happen much faster. Warnings are only sometimes provided, and should be
part of service agreements.
COTA is an organisational example. It was used by NOIE as a community case study of
good practice in implementing IT for electronic networking (NOIE 1999), and since then
subscribed to a broadband (ethernet) service. However as an information driven
organisation which represents consumer issues to government and government policies to
consumers, it is a constant struggle to contain download volume costs and avoid
subscription level hikes as more and more information is delivered online in a variety of
formats.
Video conferencing is one broadband application that would be very useful for the deaf
community, and for community groups, particularly national ones such as COTA with
offices and membership groups throughout Australia. However it is too expensive either to
purchase or to hire facilities in different locations. VPN to link offices is also out of
financial reach.
A COTA member wrote the following case study of herself in July 2002 which illustrates
points made above.
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A ‘case study’ re use (or lack thereof) of broadband
Woman, 59, semi-retired computer teacher, former web master. Lives in a unit and uses a
phone modem and has a dedicated line for internet use. She would dearly like to be able to
use broadband to save time in keeping computer knowledge up to date and for
communicating with students. She also uses the internet for recreational use.
She writes: "The cost of broadband is prohibitive. I would have to purchase a broadband
modem and pay for setup costs as well as the monthly connection fees. (I assume that setup
costs would include disconnection of internal phone modem, otherwise this is another
expense.)
The cost of my current internet connection is $410 a year – which comprises service
provider $110 a year (this giving 8 hours access a day); total phone bill (including service
fees and calls) $25 per month which is $300 a year.
Yes, there was originally a cost for this phone line to be connected, but it doesn’t have to be
paid for again. So - a phone modem is much cheaper than the $50-60 a month ($600-620 a
year) quoted by broadband providers."
As this woman looks towards full retirement, she will be reducing expenditure, not
increasing it, and may well need to move to using only one phone line for all usage.
Her current service provider does have broadband, but not yet in her area (of Melbourne).
Some broadband providers will not connect to units or other multi dwellings. This is not a
problem for this person as Optus are already connected to the block of units, however it
would necessitate change of service provider and therefore email address.
Early adopters of DSL reported high levels of dissatisfaction with quality and reliability of
service. Talk of class actions against Telstra for regular failings of its ADSL service reflects
this - Telstra does not offer business customers guarantees on its service availability or
quality (Shipton 2001). Broadband suppliers need to offer quality of service standards such
as minimum level service agreements.
If Telstra, as quoted in July 2002 (The Age, 30 July 2002, Business p2) aims to reach one
million broadband subscribers by 2005, up from its current 175,000, it will have to offer
better services than it does now, judging by comments on the Australian Broadband Users
Groups website at www.ausbug.org, for example.
The Consumers' Telecommunications Network (2002) suggests a greater choice of
providers and prices is needed, providing 'home-brand' broadband products and a range of
services between these and premium ones. Others argue that the current array of different
components in broadband plans is baffling and makes it difficult for consumers and small
businesses or organisations to work out what is best for them. The recommendation above
on a communications strategy would help address this.
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The market has been slow to provide broadband telecommunications to rural areas, so lack
of coverage outside the CBDs and intercapital routes needs to be addressed by a mixture of
public and private investment. The subsidised satellite service for remote areas introduced
by Telstra in December 2001 was a welcome move but it is expensive, one-way only, and
large areas are still not covered, which is a barrier to implementing programs such as
telehealth/e-medicine. Gerard Goggin's work at QUT is useful for a discussion of the failure
of government policy and commercial competition in telecommunications provision for
regional communities (Goggin 2002).
Presenters and participants alike at the Electronic Networks – Building Community 2002
conference at Monash University in July (http://www.ccnr.net/2002/) stressed the
importance of social connectedness and community networking. The digital divide policy
debate needs to extend beyond access barriers and disadvantage to focus on digital
dividends and recognise the importance of developing social capital through building online
communities. Broadband has lifted the bar for such democratic participation and content
provision and access issues need to be included in such debate. Calls for community service
internet access rates for centres such as public libraries, telecentres, etc will extend to
broadband; likewise calls for subsidies, like those existing on rates, for pension holders.
Broadband needs to move beyond asymmetrical data flow (eg ADSL) to maximise user end
creativity: true interactivity means being able to push data out at the same capacity it is
received.
COTA agrees with the Australian Consumers' Association (2000) that the Universal Service
Obligation requirement for digital data access should be progressively upgraded to include
higher data rates and affordability criteria. In 2000 their argument for universal data access
is just as relevant for higher speed services beyond 2002:
"It is critical because it mirrors at a social level the digital need for interconnection
and access a the technical level. It matters to all the users of a system that other
people can access and use the various networks. The more people there are on the
networks, the greater the potential utility of the network to all. Excluding people
from networks for reasons of poverty or geographic location reduces the value of the
network, not only to those who cannot get on, but also to those who are on because
they cannot access their absent friends (or potential customers, partners, relatives or
community members)." (Britton 2000 p31)
Older people are a growth market for technology products and education, and need to be
recognised not as technophobes, but as a vital consumer group who will purchase and
access technologies if they are useful to them (Scott 1999). Senior surfers will become a
growing market of more sophisticated users demanding higher end services, particularly as
baby boomers leave the workforce where they have been accustomed to commercial
technology applications such as broadband. The key drivers for them, and for general
household and community broadband access will be affordability, convenience, reliability,
compatibility with existing equipment and ease of use. Ensuring consumer access to greater
bandwidth, which means moving beyond the dominant business-to-business models, is
essential to grow diversified markets and provide opportunities for rich content and
interactive service delivery.
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Summary of Recommendations
1. Extend BAG's terms of reference to include residential consumers and community
sector consultation and representation.
2. BAG consider a communications strategy for providing accessible information to
consumers, community and small business organisations with the following
components:




definition of terms;
community consultation strategies to ensure that the voice of the consumer,
including older people and those from educationally or financially disadvantaged
backgrounds, is heard;
resource community organisations to provide information to consumers via their
networks;
Australian Communications Authority to develop a broadband guide as part of
their consumer information campaign.
3. Broadband service providers to provide minimum service level agreements which
include advance warning on volume levels.
4. Include broadband access issues in a digital divide policy debate which focuses on
digital dividends and recognises the importance of developing social capital through
building online communities.
5. Universal Service Obligation requirements for digital data access be progressively
upgraded to include higher data rates and affordability criteria.
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References
Australian Consumers' Association (2000) Banned width. Online at
www.choice.com.au/articles/a101393p1.htm
Australian Bureau of Statistics (2002) Census of Population and Housing: selected social
and housing characteristics, Australia. Catalogue 2025.0. Summary at www.abs.gov.au
Australian Bureau of Statistics (2001a) Population by Age and Sex, Australian States and
Territories, Cat No 3201.0. Canberra, December 2001
Australian Bureau of Statistics (2001b) Use of the Internet by Householders, Australia, Nov
2000. Catalogue no. 8147.0 9 (final issue)
Britton, C (2002) Deadhand on broadband, Consuming Interest, no.91, Autumn, p13-15
Online at www.choice.com.au/articles/a103170p1.htm
Britton, C (2000) How big is the CON in digital convergence? Consuming Interest, no.85,
Spring, p28-31
Consumers' Telecommunications Network (CTN) (2002) Broadband and affordability,
Newsletter, no.54, April, p1-2
Goggin, G (2002) Broadband or ringbarked? Community networking and rural
telecommunications futures. Conference Proceedings: Electronic Networking 2002 –
Building Community, July 3-5, 2002 [cd-rom]
Human Rights and Equal Opportunity Commission (2000) Accessibility of Electronic
Commerce and New Service and Information Technologies for Older Australians and
People with a Disability: report
www.humanrights.gov.au/disability_rights/inquiries/ecom/ecom.html
Human Rights and Equal Opportunity Commission (1999) Issues Paper: Accessibility of
electronic commerce and other new service delivery technologies for older Australians and
people with a disability
www.humanrights.gov.au/disability_rights/inquiries/ecom/ecommerce_issues_paper.htm
Jackson, K (2002) Household broadband access in Australia, Department of the
Parliamentary Library Research note no.34 2001-02
Online at www.aph.gov.au/library/pubs/rn/2001-02/01rn34.htm
National Office for the Information Economy (2002) Current State of Play - April 2002
www.noie.gov.au/Projects/information_economy/research&analysis/ie_stats/CSOP_April2
002/index.htm
National Office for the Information Economy (1999) Community groups online: practical
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examples of the non-profit sector using electronic networks, Canberra.
www.noie.gov.au/projects/access/community/publicinternetaccess/community_groups_onli
ne_report.htm
NATSEM (2000) Barriers to the take-up of new technology, by Rachel Lloyd & Otto
Hellwig. NATSEM discussion paper no.53. Canberra, National Centre for Social and
Economic Modelling, University of Canberra, 2000. www.natsem.canberra.edu.au
Scott, H (2001a) "Information and education initiatives and strategies", paper for the
Accessible E-commerce Forum, Human Rights and Equal Opportunity Commission, Sydney,
29 November 2001. www.cota.org.au/infoedstrat.htm
Scott, H (2001b) "Old dogs learning new clicks" - older Australians in the information age",
paper presented to E-Commerce, Electronic Banking And Older People Seminar,
Victoria University, 22 May 2001, www.cota.org.au/ecommerc.htm
Scott, H (1999) Seniors in Cyberspace: older people and information, Strategic Ageing
8/99. Melbourne, Council on the Ageing (Australia).
Shipton, K (2001) Are we there yet? Broadband connectivity potentially fulfils the promise
the internet has held so tantalisingly for so long, National Business Bulletin, September,
p46-50
Vanderheiden, G (1994) Application Software Design Guidelines: increasing the
accessibility of application software to people with disabilities and older users,
http://trace.wisc.edu/docs/software_guidelines/software.htm
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