Namoi Regional Organisation of Councils
PO Box 296 QUIRINDI
NSW 2343
Telephone: 0267 463142
Fax: 0267 462190
Email: NamoiROC@bigpond.com
ABN: 35 540 425 772
BROADBAND IN RURAL AND REGIONAL COMMUNITIES
SUBMISSION
This submission has been prepared
Organisation of Councils (NamoiROC).
the major centre being Tamworth. The
the east to the plains west of Narrabri.
based on comments provided by:
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by the Executive Officer of Namoi Regional
The area concerned is in north-west NSW, with
area stretches from the Great Dividing Range in
This submission is submitted on behalf of, and
Narrabri Shire Council,
Gunnedah Shire Council,
Liverpool Plains Shire Council,
Tamworth Regional Council, and
Namoi Catchment Management Authority,
All of these organisations are members of NamoiROC. Additional information has been
provided and sourced by the Executive Officer and has been referenced where
necessary.
Introduction
 The provision of adequate, appropriate and up-to-date telecommunications in rural
and regional communities is paramount to the survival of these regions into the
future. It would seem that without a major lift in internet speeds and access, the
region will suffer the erosion of current services that can be supplied from a distance,
and, decreased attraction for new services. Without good and fast access to the
internet, the region will be unable to use the provision of technological and other
information benefits that the internet offers.
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It is a given that using internet is the way that the world is communicating now, with
many countries updating to broadband to maintain this capacity. There has been an
explosion in knowledge and information available through the internet. In addition to
this, or perhaps because of this, governments have been retracting personnel. Rural
NamoiROC Submission into Broadband in Rural and Regional Areas
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and regional areas can only maintain a competitive advantage in the products they
produce and services they provide if technology, such as broadband, keeps pace
with that available in urban areas.
a) The availability of telecommunications (including broadband) and other
technology services in rural and regional communities;
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In many areas of the Namoi catchment, phone exchanges and equipment are
antiquated. In villages which are not far from larger centres, such as Tambar
Springs, Woolbrook and Niangala (on the western edge of the Great Dividing
Range), there can be difficulties in keeping a simple landline phone operating due to
the age of the equipment.
With declining terms of trade in the rural sector, which is exacerbated by drought,
many farming families are forced to work off-farm in order to survive. With poor
landline connections and no mobile coverage, in some cases mothers with young
children are home alone with no outside contact. This can lead to safety and social
issues, and is below standard for people living in Australia.
Clearly in the situations referred to above, internet service cannot be maintained due
to poor speeds and time-outs. In some cases use of satellite is possible, but the cost
is high and not affordable for the majority. The advent of cheaper broadband would
allow outside communication to occur. Further, it may mean that people could
acquire off-farm work, but work from home, reducing the social and financial impacts
of having to travel to work.
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Some people still rely on dial-up connection. West of Quirindi the speed possible
with this is 19-24 kb/sec, which is very slow and very difficult to use due to the
number of drop-outs.
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Currently rural and regional areas have access to ADSL, which uses copper wire..
Copper wire does not have the capacity to deliver the high internet speeds that can
be achieved with broadband. The old technology of the copper wire must be totally
replaced by satellite or wireless. ADSL cannot be provided more that 5 kilometres
from an exchange and access to new technologies such as 3G continue to be
variable. Rising energy costs will also place financial burdens on anyone that lives
any distance from their nearest town, and while the shopping can wait a week or two,
the services that the internet can now provide will either, be lost, or accessed at the
most appropriate time i.e. generally when the problem or question arises.
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It would be commonly stated that regional centres and towns have access to
broadband. However, in one of the towns in the Namoi, with population of
approximately 9,000, many businesses and residents are unable to connect to
broadband due to blockages. Access to that broadband service may be as little as a
couple of hundred metres away, but the provider will not extend the service unless
the organisation individually pays at connection. This cost can be a substantial
impost and not able to be worn by even a relatively medium sized company.
NamoiROC Submission into Broadband in Rural and Regional Areas
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The remoteness of a location affects the level of computer usage. Reference to the
graph constructed by Department of Transport and Regional Services Bureau of
Transport and Regional Economics (2007)using ABS 2001 data, indicates that
computer and internet usage was lower in regional areas compared with
metropolitan areas. For example in 2001 computer usage in metro areas was 44%
compared with 35% for outer regional areas, while internet usage was 40%
compared with 28%. With limited access to broadband in regional areas it is likely
that in the intervening years since 2001, these differentials may be greater. These
differentials will not disappear without provision of broadband to rural and regional
areas.
b) The benefits and opportunities for rural and regional communities of having
access to telecommunications (including broadband) and other technology
services;
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The Centre of Agricultural and Regional Economics (CARE) (2006) report into SocioEconomic Assessment of Namoi Catchment Action Plan suggests several likely
trends for the Namoi region. These include: productive growth in agriculture,
expansion in meat and cereal processing, growth in visitations to the region and
development of additional business services associated with business and
population growth.
Since the report was completed coal mining has continued to grow, with
corresponding increases in exports from the region. NSW’s major coal resources
are in the Sydney-Gunnedah Basins, with the Gunnedah Basin expected to be a
primary source of coal into the future (Parsons Brinckerhoff, 2007). This will result in
increases in job opportunities in the region, higher incomes, and increased demand
for services that these people will require.
For all of the above expected trends and activities to occur, access to up-to-date
technology such as broadband will be vital.
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Benefits and opportunities for rural and regional communities of being able to access
appropriate telecommunications are as follows:
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Existing businesses have the ability to provide the same quality of service as a
city based businesses and allow expansion.
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Provides an overall more efficient and comparative communication service to all
residents and businesses.
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For a company that is considering moving from a city to a regional environment
where there is a better lifestyle and cheaper living costs, it is business limiting if
the telecommunications network is not up to a metropolitan standard.
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Able to attract head offices to the Shire, as opposed to a regional branch of a city
based operation.
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Provides an opportunity for professionals to move to rural areas and work from
home.
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Improved health care.
NamoiROC Submission into Broadband in Rural and Regional Areas
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Retain/attract youth, and reduce the social and other consequences of an aging
population.
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Greater access to education and educational requirements within the Namoi
region.
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Improved natural resource management, including data storage and sharing,
planning, monitoring, reporting and evaluation.
Some of these concepts are explored in more detail below.
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Health
The Department of Health and Ageing’s “Broadband for Health Program” is set to
continue accepting funding applications until the end of this year. It states that:
“Broadband is a key enabler and change agent for secure, functional, and equitable
participation in e-health activities. The program allows eligible health care organisations to
take full advantage of the potential benefits of broadband technologies.”
Clearly access to broadband in all rural and regional areas is vital for e-health to
expand. The objective of Broadband for Health is to provide business broadband to
GPs, Aboriginal Community Controlled Health Services (ACCHS), and community
pharmacies nationwide. With the decline in availability of health care professionals,
hospitals unable to keep up with demand and the costs of fuel rising, it is vital that
the health industry is as efficient as possible. The ability to transfer data such as
imaging between health professionals in geographically diverse locations could well
speed up diagnostic procedures and ultimately save lives. The possibility that
patients be assisted by professionals in different geographical locations is a real one.
In these situations it may be possible that senior doctors assist junior doctors in
diagnosis, symptom relief, operations and recovery.
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Retaining and Attracting Young people to the Namoi region
The CARE (2006) report considered the age profile of people in the Namoi and found
that, compared with NSW, that there are smaller numbers in the 20-44 age group,
but higher numbers in the 50-74 age group. It is suspected that people in the 20-34
age group, the smallest age groups, have relocated to other areas for education and
employment opportunities. With growth in some sectors, and national skills
shortages, this is leading to labour shortages in the Namoi.
Once young people have gone to metropolitan areas for education they are unlikely
to return to regional and rural areas because of the job opportunities, diverse cultural
experiences and friendships. Brown (2006) in his Submission to the Rural and
Regional Services Committee Inquiry into Retaining Young People in Towns and
Communities, stated that access to internet, advent of a globalised world of trade
and increased aspirations has increased the movement of youth to cities as they
become more aware of global opportunities. He believes that being accustomed to
high speed internet in cities is one factor keeping youth in cities.
Brown (2006) looks at the factors that would influence young people in their
decisions to return to rural communities. These include suitable employment,
NamoiROC Submission into Broadband in Rural and Regional Areas
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housing, schooling for children and cultural and sporting opportunities. Importantly
he states that:
“Modern communication is a ‘must have’. Young people simply cannot function well at work
or at home without broadband internet access.”
One of the seven recommendations of Brown’s (2006) report regarding strategies to
retain and attract youth back to rural and regional centres, is to roll out broadband as
fast as possible as access to fast internet is vital.
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Primary and Secondary Education
Primary and secondary students are relying increasingly on computers and the
internet for access to information in all geographic areas. Computer studies are now
core units. Access to broadband is vital if students in rural and regional areas are
not to be disadvantaged compared to their metropolitan counterparts.
In parts of the Namoi catchment, access to technology could mean that children may
not need to be sent to boarding schools which can come at a high financial and
social cost to those involved. It is possible that with adequate broadband, schooling
could be based in learning centres as described below.
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Tertiary Education
Parsons Brinckerhoff (2007) in their Background Paper for the Namoi 2030 Regional
Resource Strategy has identified that consultation with the Namoi community has
demonstrated that the lack of tertiary education facilities in the catchment is seen as
a gap. This gap is being filled to an extent by access to distance learning. The
community sees the opportunity for purpose built learning centres where students
can access fields of study from a range of universities rather than just one.
Australia is a leader in distance education (IDP Education, 2007, web). The
University of New England (UNE), located in Armidale, is in close proximity to the
Namoi catchment. More than 12,500 of its 17,000 study via the internet. 600
courses are available online in both under and postgraduate fields of study.
It is important to note that not all external students studying through Australian
universities are located in Australia. The University of Southern Queensland has
approximately 17,000 distance education students, with 5,000 of these being
international students from 80 countries (ADP Education, 2007). Clearly, regional
universities require access to cutting edge technology to be able to continue to
provide services to these global markets.
The requirements for both delivery and access include discussion boards, on-line
chat rooms and video conferencing.
Garbutt (2002) provides specific examples of problems with slow internet speeds and
states that:
“ Access to online education brings with it specific issues regarding internet access. As
greater use is made of interactive components and as technological advances are made with
NamoiROC Submission into Broadband in Rural and Regional Areas
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software and personal computer processing power, the limiting technological factor for many
regional and rural learners is telecommunications infrastructure.
Slow data speeds, frequent drop-outs and high access prices are major disincentives to
online study. In many rural and regional areas the available date speeds and reliability of
connections are not adequate for effective on-line study.”
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Agricultural Businesses
Like all businesses, agricultural businesses are becoming increasingly complex and
more reliant on technology for success. With declining terms of trade, and the
removal of former government services, such as agronomy, farm managers must
access services in other ways. Broadband allows access to information formally
provided by advisors.
Marketing information is now being supplied by consultants in an increasingly
sophisticated manner. Broadband will allow these consultants, and the farmer
clients that they service, to access detailed information and allow clients to make fast
and timely decisions.
Weather information is supplied by the bureau of meteorology via internet. Access to
current and long term forecasts predicted by a range of modelling tools allows
farmers to plan operations much more effectively than happened prior to the internet.
With climate change expected to cause lower rainfall, higher temperatures, higher
evaporation and increased storm activity, this planning will become even more
crucial to the success of farm businesses.
Access to broadband will allow stronger control along the supply chain. With
increasing demand for compliance by consumers and government, the use of
advanced computer systems is necessary in order to monitor movements of products
from the paddock to the plate via transport, wholesale and retail sectors, It is unlikely
that the control and linkages that will be necessary will be possible without access to
broadband.
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Indigenous communities
7% of the Namoi’s population is of indigenous origin (ABS Data 2006, cited by
Parsons Brinckerhoff, 2007). Assess to broadband by Aboriginals themselves and
by the services that they require, such as healthcare, is important in order that they
achieve improvements in living standards.
Access to broadband will assist them in marketing of products, such as native food,
art and musical instruments, outside the region. With growing interest in indigenous
culture around the world, market development and sale of these products present
exciting opportunities.
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Banking and Home-Based Activities
Internet banking has become common place over recent years, creating the ability
for businesses and individuals to do their banking online and complete other financial
transactions, such as payment of bills using the internet. This is now a service that
urban dwellers have come to expect. If regional and rural areas are to grow, the
NamoiROC Submission into Broadband in Rural and Regional Areas
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ability to use such systems must be offered to all. Fast internet speed is necessary
for this to happen.
Young people now communicate with each other using the internet. They also
access music, videos and information making broadband internet access an
important social and educational tool.
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Government/Business and Government/Individual interface
All levels of government are using the internet to interface with their customers, be
they businesses or individuals. Each government department has a website which
provides access to vast amounts of present and past information. Businesses are
now able to obtain information pertinent to commencing and operating a business
depending on location, using programs such as “Start Your Business Here” which
provides information on all relevant federal, state and local government regulations.
BASIX, introduced in 2005, is a state/local government requirement aimed at energy
and water efficiency. This is web-based, and in some areas can link directly into
web-based building applications, using “Smartforms”. Increasing capital, human
and financial resources are being put into development of interactive software to
enable easier transfer of information between all levels of government and their
customers. Without the accompanying technology, the success of this in the marketplace will be limited.
c)Disincentives and barriers to the provision of telecommunications (including
broadband) and other technology services to rural and regional communities;
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Disincentives and barriers to the provision of telecommunications in rural and
regional communities are as follows:
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Distance from telecommunication hubs.
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Population density which creates a small customer base for the
telecommunication provider and higher relative cost per capita for infrastructure
and services.
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Telecommunication providers perceiving rural and regional areas as a loss
leading part of the business.
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Telecommunication providers not prepared to think to the future and install
infrastructure now for future expansion.
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Telecommunication providers extending service under a user pay framework,
then keeping control of the asset upgrade and charging the customer for use of
the line that they paid for.
The following are comments from council staff who were invited to provide
information for this submission:
Tamworth Regional Council staff member:
NamoiROC Submission into Broadband in Rural and Regional Areas
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“I read on Zdnet last night that Telstra had tested ADSL longline technology successfully to
extend the reach of ADSL to 20 Kilometers, but even pulled the press release from their Web
archive, as they had just spent 1 Billion Dollars on Next G and wanted to push this
technology for distance Broadband.”
Telstra have also restricted access to ADSL 2 DSLAMS (20 Megabits/sec) in exchanges
where no competitor has ADSL 2 available. This affects rural users the most as the Smaller
ISPs need deep pockets to cover the whole country, so go for the most profitable - densely
populated areas first”.
Gunnedah Shire Council staff member:
“To research or workshop the disadvantages of not having high speed broadband access in
rural Australia is easily answered by looking at Telstra web site. Telstra as part of their sales
pitch list many advantages in moving to high speed ADSL2 broadband.
During the last year and a half, there have been several debates about why Gunnedah
doesn't have ADSL2. Over this period the reasons why seems to come back to the fact
ADSL2 is here in Gunnedah, but Telstra does not want to turn it on due to competitive
reasons. This was confirmed at last week presentation by Telstra who confirmed that it does
exist at the Gunnedah exchange but not activated.
ADSL2 can deliver up to 20mb/second, which is approx 350 times fast that dial-up
connections.
Of interest on the Telstra web site is the wording used to check for availability of ADSL2
within you area. Their wording points to the view of "eligibility “by using the phase “Check
here to see if you are eligible for ADSL2” , indicating perhaps some class difference to see if
you can get it. The dictionary describes eligibility as " qualified for or allowed or worthy of
being chosen”.
Also of interest is how the rural community, those who at least have ADSL, pays more on a
percentage basis for slower speeds than their city cousins. Telstra current 12GB plan shows
that an ADSL connection running at 256kb/second pays a monthly fee of $59.95. Looking at
the same plan for those who get ADSL2 (approx 40 times faster) pays a monthly fee of
$89.95. So the 256 ADSL user pay approx 23.4 cents per kb of speed and the ADSL2 only
pays approx 0.008 cents per kb.”
d)The consequences for rural and regional communities of not having, or not
having adequate, access to telecommunications (including broadband) and other
technology services, having regard to likely future industry and technological
developments
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The Socio-Economic Assessment of Namoi Catchment Action Plan by CARE (2006)
identified that developments in transport and communication have meant that
operations and management of organisations can be located anywhere. However
for reasons of economies of scale and access to skilled workers has meant that
significant services have been withdrawn from smaller locations and specialist and
management functions have been centralised. “Footloose businesses” have tended
to avoid the region in favour of metropolitan areas. It is vital that transport and
communications capacities are brought up to and maintained at a “metropolitan
equivalent” in order that business other than those reliant on primary industry can
NamoiROC Submission into Broadband in Rural and Regional Areas
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locate here without disadvantage.
If businesses can rely on adequate
telecommunications they are likely to locate in the region because of the natural
amenities such as space, lack of traffic, clean air and proximity to nature.
The guarantee of good telecommunications will allow global businesses to locate in
the Namoi region and will also allow businesses outside the region to have access to
Namoi markets.
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Consequences for rural and regional areas
telecommunications can be summarised as follows:
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of
not
having
adequate
reduced opportunities for rural communities (jobs etc)
cost to community unable to transact business to business
limited access to marketing & purchasing
limited access to educational resource material for rural remote students
poorer health care
limits access to community services information
regional areas less attractive to new industries and families, the “tree change”
group, who expect a higher service level as the business norm and will question
a move to a rural and regional environment if they do not have the same level of
access as they are used to.
supports continuing drift of people to the cities
adding to the list of issues already making regional and remote communities
unsustainable; current operating businesses are falling further left behind
organisations in metropolitan areas.
e) Options for encouraging providers of telecommunications (including broadband)
and other technology services to extend services to rural and regional
communities.
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In order to achieve equity in broadband access, the government must provide a
regulatory framework that allows the investing-provider a certainty of revenue flows
and customer base.
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It may be necessary that Commonwealth Government incentives are provided to
ensure an equivalent service in the regions to that accessed in the city.
Decentralisation of city based government departments into rural areas with the
corresponding upgrade of telecommunications infrastructure to service those
departments would provide overflow benefits to the wider community.
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The commitment to broadband must be also be guaranteed by the telco’s to ensure
that access to broadband is achieved by all, and not just most.
References
NamoiROC Submission into Broadband in Rural and Regional Areas
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Brown JG (2006) Submission to the Rural and Regional Services Committee Inquiry into
Retaining Young People in Towns and Communities. Champions of the Bush Inc. April
2006
Centre for Agricultural and Regional Economics Pty Ltd, Socio-Economic Assessment of
Namoi Catchment Action Plan, Report to the Namoi Catchment Management Authority.
May 2006
Department of Health and Ageing Broadband for Health
http://www.health.gov.au/internet/wcms/publishing.nsf/Content/health-ehealthbroadband-index.htm
Department of Transport and Regional Services Bureau of Transport and Regional
Economics About Australia’s Regions 2007
http://melbourneinstitute.com/hilda/Biblio/Australias_Regions_07.pdf
Garbutt R (2002) Submission to the Regional Telecommunications Inquiry, 2002.
Southern Cross University, Lismore.
Idp education
http://www.idp.com/usa-canada/students/fulldegreestudents/article134.asp
Parsons Brinckershoff (2007) Namoi – 2030 Regional Resource Strategy, Background
Paper, October 2007, Sydney.
Katrina McDonald
Executive Officer
NamoiROC
November 2007
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