Net Neutrality: Does it really matter?

© Depositphotos.com/@mindscanner

The decision by the US Federal Communications Commission to regulate broadband providers to ensure that all data traffic is treated equally has been hailed by some as a step forward in achieving net neutrality. But does forcing a common-carrier regulatory approach on internet service providers really make any difference to consumers?

Not according to Margeurite Reardon at CNet.

The basic premise of the net neutrality movement is that by preventing commercial controls over how and whose data is prioritised via the internet, the network itself can remain neutral as to how and whose data is moved. The internet has largely been unregulated for the last two decades, unlike telecommunications services which have been subjected to common carrier rules since at least the early 20th century.

The original purpose of the common carrier rule was to prevent telegraph and later telephone operators from controlling newspaper content sent via the infrastructure. This regulatory concept, among other things such as commercial agreements, became the basis for the divergence of the newspaper, telecommunications (telegraph and telephone were diverged further in North America) and later the broadcasting industry.

Traditionally, broadcast content was regulated for cultural reasons, whereas telecommunications common carriers were required to carry any message to prevent the control of information. Of course, in the age of technological convergence, the distinction between these industries has become less clear.

The debate in the US is fierce. While proponents suggest net neutrality will keep the internet free, opponents see it as nothing more than government meddling.


The trouble is that net neutrality assumes limited resources and is still somewhat based on the natural monopoly argument. That is, where one carrier dominates, it must be a common carrier to prevent the prioritisation of traffic. But with so many providers and so many ways to access the internet, it all seems rather passé

Will net neutrality keep the internet open? Better to ask if it was ever open. Does it really matter to consumers  whether some content gets delivered via fast lanes? It would seem that this would be something that consumers want. Indeed, if they did not like it then there is always another provider. Why shouldn't you be able to get what you pay for?


So despite all the brouhaha, the net neutrality decision in the US is little more than a big win for the idealists. And it won't make much difference to what happens here in Australia.

I were to make a prediction, I doubt net neutrality will survive the court appeals that will no doubt follow. Even if it does, a Republican win at the next election would probably kick it into touch anyway.

And does it really matter to consumers? Not really, other than it might mean it costs more to access the internet in the US.

Action Adventures, or Why I gave up the bus

© Depositphotos.com/@comzeal

When I purchased a second car a few months ago, there was much discussion about whether we should give up cars altogether and just ride the bike or bus, or, take advantage of the bike racks on the bus and do both. I've been trying to do that recently but I am grateful for the car every day.

As the ideal way to improve the environment, and one's finances, the bicycle/bus combination makes sense. But in practice, it is a joke in comparison to using my car.

Getting to or from work on the bus is hard work. At one point during the day, there are no buses for a period of 1 hour and 20 minutes, and only every hour after that.

Lately, I have tried to ride to intercept the bus along one of the routes where it travels every 15 minutes. About 80% of the time, this is successful. But 20% of the time the bus does not have a bike rack. This is not consistent, either, with buses with or without racks seeming to change from day to day.

But no matter what, it takes a minimum of 50 minutes to travel one way to work from home without the bike, or, depending on time waiting at the bus stop, about 30 minutes with the bike/bus combo.

Yesterday, however, the bus driver insisted that my bike was too big for the rack, even though it had been on that particular bus (identifiable by a stuffed lizard attached to the bike rack) several times before. After some passive-aggressive old man-isms, he insisted that I "get it checked out", whatever that means, and let me travel. 

That was it for me. To top it off, my bike, which had the puncture fixed the day before, ended up with another puncture after about 5 minutes of riding.

So I drove the car.

Peak moment in Canberra traffic and I decided to drive home via Gungahlin Drive. $6 for parking, 10 minutes driving and I was home. Parking cost me about $2 more than the bus even after the BPay discount via MyWay. I have to pay for registration, maintenance and fuel anyway, so the other costs are negligible.

Adapted from © Depositphotos.com/@Den.the.Grate@gmail.com

And that is it for me. I gave it my best shot, but the obstacles are far too great. I would rather spend 10 minutes in the car than 50 minutes in the bus and getting lip from bus drivers. Excuse me for being so demanding of public transport. But there it is. Even though I have about $40 left on my MyWay card. It can stay there.

I am convinced that there has to be a better way. If anything, my Action Adventures demonstrate that public transport, at least as I would use it, is not worth the hassle. It is fine for others, but not for me. 

Funnily enough, the literature suggests that this is the biggest impediment to improving public transport in Australia. Most people agree it is a good thing, but nobody wants to use it. And now I know why I prefer my car.

Relying on the Bus in Canberra

© Depositphotos.com/@alliesinteract

After the morning's commute of 10km that, time-wise, was the equivalent of travelling from Penrith to Sydney, I thought I should take stock and reflect on the journey. It was obvious that traffic congestion on Gundaroo Drive may have had something to do with it, especially during Canberra's "peak moment".

But this evening, after staying back at work to participate in some of the many O Week activities, the bus journey home proved that things have simply gotten worse.

So at 7:30pm, as I walked to the bus stop on Hayden Drive, I watched, from 40 metres away, as the No. 250 sailed on by. No problems, it arrives every 15 minutes. Apparently.

At about 8:00pm, the next No. 250 arrives. By 8:15pm, I am at the Gungahlin Interchange.

But the No. 56, the only bus that goes to Palmerston (which used to go from Belconnen to Gungahlin), now starts at Gungahlin. At about 8:30pm, the number 56 arrives. It drops me off at my stop by about 8:45pm. 

No peak moment traffic, no nothing. But 15 minutes slower than this morning's trip during "peak moment".

Is my complaint unjustified? Is it really that improbable that more than one person needs to get from Belconnen to Palmerston, one of Canberra's most densely populated suburbs?

It is so bad that if I didn't find it a useful time to get through my reading list while sitting on the bus, I would probably move to Sydney so my commute time was not so onerous!

Time for Action: Get your kicks on Route 56

Base image © Depositphotos.com/@zager

A flat tyre on my bike and an approaching deadline left me with two choices: drive to work or be organised enough to catch the No. 56 from Palmerston to UC. I was organised enough so at 8:03am, I stepped onto the bus in Palmerston. 

Arriving at work, 10km away, I stepped off the No. 250 at 9:00am precisely. This represents a new level of inadequacy on the sole bus service for my suburb. Almost one hour to travel on the bus. The same trip can be covered on a bicycle in 30 minutes, and about 10 to 15 minutes in the car, depending on traffic.

But what is remarkable about this problem is that the latest Action bus timetable has made the Palmerston bus service worse than ever.

When I first caught the No. 56 bus back in 2005, it went from Palmerston out onto Gundaroo Drive and then on to UC in 15 minutes. Almost the same as the car. But then in about 2010, some bright spark thought that the service would be better it if went via Gungahlin. So, in effect, I got on the No. 56, went to Gungahlin, stayed on the bus, travelled back past Palmerston, then on to UC. Total travel time 30 minutes. About the same time as the bike.

But today, I discover the No. 56 ends at Gungahlin. So, too, it seems, does the No. 57. This explains why, when I miss the No. 56 and I ride down to Gundaroo Drive to intercept another bus there, I watch as at least two buses "Not in Service" travel past me quite smugly until the 250 comes along.

So the bus driver informs me that the 56 now ends at Gungahlin. I got kicked off Route 56. 

I wait patiently for the 250, and then, in gloriously bureaucratic efficiency, I arrive at my destination in twice the normal time. Thankfully, I use my time on the bus to read. Mostly, I use the bus/bike combo because it is relatively cheap and it means I do not have to waste fuel or pay for parking. Even though most bus stops are quite a walk away from wherever I want to go, it is so much easier when you can cycle to and from bus stops. 

But I can only imagine what it must be like to rely on the bus for the daily grind. Imagine living in Palmerston and working in Belconnen? A one-hour commute. That is the equivalent of living in Penrith and commuting to the Sydney CBD. This is hardly the way to encourage people out of their cars. It also makes the plight of Palmerstonians, in Canberra's most densely populated suburb, that much harder.

Want to get your kicks on Route 56? Then it's time for Action.

Traffic Congestion: An efficient solution to peak hour traffic...?

© Depositphotos.com/@alexandragl

This week, I've been reviewing the literature on transport infrastructure policy. If there is one, big, wicked problem in transport infrastructure, it is traffic congestion. Nobody likes sitting in a car capable of travelling in excess of  100km/h only to crawl along at a snail's pace for a substantial portion of one's waking day.

But respected American economist Andrew Downs (1992: 6, see Holden 2010) suggests that "traffic congestion is the balancing mechanism that allows [people] to pursue certain goals they strongly desire - goals other than rapid movement during peak hours."

Traffic congestion is the balancing mechanism that allows [people] to pursue certain goals they strongly desire - goals other than rapid movement during peak hours (Downs 1992).

The fundamental problem is the "resulting disparity between the high demand for traveling during [peak] periods and the limited supply of roads." Downs (1992: 7) outlines four theoretical solutions to this fundamental problem: 

1. Ration the use of roads through user charges when demand exceeds supply,
2. Increase the capacity of roads,
3. Increase public transport, or
4. Put up with traffic congestion.

In effect, whether by default or design, congestion is the preferred solution to the current problem.

Realistic solutions to transport problems tend to focus on what Dr Dinesh Mohan of the Indian Institute of Technology suggests is unsustainable: "You just increase transport, you don't reduce congestion."

You just increase transport, you don't reduce congestion (Dr Dinesh Mohan).

The biggest problem with any of the solutions proposed by Downs is that people do not want to have road use rationed, whether through tolls or other user-pays methods, and until public transport is reliably faster than travel by car (such as Hong Kong's MTR, for example), then increasing road capacity is the only logical solution. Unless, of course, governments stop funding ever-increasing road capacity that, despite the best of intentions, ultimately ends in traffic congestion closer to the CBD. Clearly this is not sustainable.

As Downs stated two decades ago, the only way to reduce peak capacity is to reorganise the times we go to work and school. Until then, traffic congestion, which is effectively making people line up to use the road system, is the optimal solution to this wicked problem.

References:

Dearnaley, M. (2014, September 17). Metro rail won’t fix congestion - expert. New Zealand Herald. Retrieved from http://www.nzherald.co.nz/mathew-dearnaley/news/article.cfm?a_id=111&objectid=11326500.

Downs, A. (2005). Still Stuck in Traffic: Coping with Peak-hour Traffic Congestion. Washington, DC: Brookings Institution Press.

Holden, M. (2010). The Rhetoric of Sustainability: Perversity, Futility, Jeopardy? Sustainability, 2(2), 645–659.

Canberra Transport Nightmare: Trapped in Palmerston!

© Depositphotos.com/@olly18

Yesterday I thought I was trapped in a Freddy Kruger nightmare from which there was no escape. All roads led me back to Palmerston despite my best efforts to leave.

I had to be in the city and left Palmerston at 9:40am. When I arrived at 10am there was nowhere to park. Nothing. 20 minutes walk away there was a pay parking car park - I have no problem paying for parking - but it was for a 3 hour limit. I did not want to have to walk back to my car in the middle of the day just to feed the parking metre. If it had cost $20 I would have simply paid and got on with my day. But no, not in Canberra.

After driving around for 40 minutes I found that transport in Canberra is just like broadband. In many cases, it simply does not matter how much money you have, you just cannot get what you want. Here was a demand for something I desperately needed: a car park close enough to carry a few things to where I needed to be. In Jordan, I can find valet parking almost anywhere, yet in the capital of one of the richest countries in the world, nothing.

So, in the spirit of a mini-ethnography, I decided to test the alternatives to driving my car. I drove back to Palmerston, parked my car, and then checked the bus timetable. It was 11am and I had missed the No. 56 bus to Civic by about three minutes and the bus to Gungahlin by about ten minutes. The next bus out of Palmerston was in about another hour.

I quickly called a taxi. Because my hearing is not the best I asked for the "agent" and joined the cue. Then I heard the engaged signal - I had been cut off. This was not the customer service I was hoping for so I decided to exercise my freedom of choice. I would walk to Gungahlin and bus it to civic. I had to reconfigure what I was carrying, but my research fieldwork was now in full flow.

On the way to Gungahlin, I passed the Gungahlin High School. A woman leaving the car park was stopped across the footpath. I walked in front of the car to continue my journey while the woman looked at me and sped up to beat me across the footpath. But, knowing that "when leaving a private driveway or an off-street parking area [motorists must] give way to all traffic on the road and pedestrians and cyclists on the footpath" (see ACT Road Rules Handbook, page 73), I continued on my way.

When leaving a private driveway or an off-street parking area give way to all traffic on the road and pedestrians and cyclists on the footpath.

© Depositphotos.com/@ExoroDesigns

As a matter of course, the woman gave me a string of lip about getting in her way and impeding her journey across the footpath.

I arrived at Gungahlin at 11:40am. I know that Route 200 to Civic runs every 15 minutes. This excellent bus service follows the same route that the Capital Metro light rail project will duplicate at a cost of some $783 million (or more). But I was shocked to find that the next bus to Civic was actually the No. 56 which goes via - you guessed it - Palmerston. 

But as the 56 goes through Mitchell and Palmerston, it is quite a trip compared to the No. 200, so I resolutely waited for the 200.

Several bus numbers (the No. 250 and the No. 52) stopped at the Gungahlin Interchange that were not on the timetable. I had no idea where these buses came and went.

One minute after the No. 56 departed, the 200 arrived and off I set to Civic at 11:50am. By 12:15pm I was there and I went to the No. 5 platform to transfer to the No. 7. It was five minutes late but by 12:38pm I had arrived at my destination. To travel 17.4km took me 1 hour and 38 minutes.

There is no moral to this story but it is clear that unless you live on a major bus route, travelling in Canberra is a nightmare. The bus routes are good in some places, but not in Palmerston, the most densely-populated suburb with some 3,200 people per square km. This is 200 more people per square km than Braddon. Indeed, the bus service in Palmerston does not operate for a period of up to 80 minutes at one point in the day.

Unless the Capital Metro means more bus services will operate in Palmerston, it is difficult to see how increasing property returns for developers alone justifies the public investment. Duplicating the No. 200 bus service will certainly change the Northbourne corridor, most likely for the better, but let's not pretend that its purpose is to improve transport. Private investment in Capital Metro will end this problem but it is still not clear how the funding model will work.

Why does it take so long to travel in Canberra? Sure, the distances are vast, but there is not that much traffic outside of what I call 'peak moment'. But the combination of no parking and no bus services does not make sense. Surely there is a market for one or both of these services? Nevertheless, there are so many barriers to leaving the car at home. Today, I had thoughts of taking my bicycle and using the bike rack on the bus. This is a fine service but instead I car-pooled with a friend as I had scored a car park.

What of the attitude towards pedestrians? I suspect this indicates that there are many more institutional barriers to effective transport infrastructure in the ACT, if not Australia more generally. These barriers have long-term implications. According to the OECD, 'there is a shortfall of infrastructure, harming investment, and a lack of policies to ensure its efficient use'.

There is a shortfall of infrastructure, harming investment, and a lack of policies to ensure its efficient use.

Regrettably, Canberra is a case in point. While it may not be 'extreme commuting', if one is forced to use the bus from Palmerston to the outer areas of Civic, it would seem that the average commute time of 1.5 hours to travel 17.4km by public transport is rather disappointing. Nevertheless, I fail to see how Capital Metro will improve this situation any time soon.

Post script: The trip back to Palmerston

• 2:44pm - Arrive at bus stop as per timetable
• 2:51pm - Board No. 7 bus
• 2:58pm - Arrive at Civic Interchange
• 3:02pm - Board No. 200 bus
• 3:27pm - Arrive at Gungahlin Interchange
• 3:49pm - Board No. 56 for Palmerston
• 4:04pm - Arrive my stop in Palmerston

Total commute time to travel 17.2km: 1 hour 20 minutes

(I won't add the time it takes to catch a bus to work from Fyshwick when I have to put my car in for a service. It is just too depressing).

A Centralised Institution for Selecting and Appraising Infrastructure Investment?

© Depositphotos.com/@Paha_L

One of the key findings from my comparison of communications technology policies in Canada and Australia was that there are so many varieties of particularism - that is, the various user requirements and preferences, technologies, types of infrastructure, geographical and cultural circumstances, and so on that require bespoke solutions - that a centrally-controlled, one size fits all solution will inevitably provide a suboptimal strategy in meeting infrastructure demand.

Yet when planning infrastructure, there may well be a case for a centralised body to independently vet project selection and the relevant cost-benefit analyses before government-led investment in infrastructure occurs.

An IMF staff study, released as "Chapter 3: Is it time for an infrastructure push? The macroeconomic effects of public investment" in the latest instalment of the 2014 World Economic Outlook, suggests that centralised institutions designed to appraise major infrastructure projects may improve the efficiency of public investment in infrastructure:

"project appraisal can be strengthened by instituting a centralized, independent review process to ensure robust estimates of the costs, benefits, and risks of potential projects, as has been done in Australia, Chile, Korea, and Norway" (IMF 2014: 31).

As I wrote in The Conversation earlier this year, the NBN was the last of the great romantic infrastructure projects. Indeed, the federal government's cost-benefit analysis signalled the end of an era in major infrastructure project selection and deployment.

It would appear that different types of infrastructure might benefit from different deployment strategies. However, it makes a good deal of sense for government-led investment in infrastructure to be appraised and selected by an independent body.

One of the major problems with transport infrastructure, for example, is that political incentives, specifically votes, may encourage a myopic planning approach that suits the election cycle. Surely long-term infrastructure planning should be beyond the control of short-term caretakers.

Of course, a centralised institution brings with it a whole raft of other problems for the practice of liberal democracy. But in the meantime, Australia is suffering from infrastructure bottlenecks that might be solved with some clever planning and investment. 

Whether Infrastructure Australia can gain the necessary political clout to fix Australia's infrastructure woes is another story. The biggest problem for any centralised institution in a federation is the constitutional legacies of responsibilities granted to the different levels of government. 

Indeed, it seems that, despite the federal government's apparent best practice in infrastructure policy, the states may just (pardon the pun) de-rail Infrastructure Australia's good work unless Mr Hockey's asset recycling policy begins to develop some traction.

Nonetheless, it is entirely regrettable that Rob Sitch's "Nation Building Authority" (see ABC's Utopia) provides a timely counter-point to such best practice.

My latest on "The Conversation"

NBN cost-benefit analysis signals the end of an era

By Michael de Percy, University of Canberra

The long-awaited cost-benefit analysis of the National Broadband Network suggests the days of politicians shooting from the hip with taxpayer dollars are numbered.

As Labor’s NBN unfolds amid reviews and revelations, it’s apparent the NBN was a political move based on romantic notions of policy-making ending in Labor’s electoral defeat in 2013.

In government, the Coalition called for a strategic review of the NBN, revealing a number of problems with the project’s implementation. Malcolm Turnbull also promised to deliver an independent cost-benefit analysis of the economic and social costs and benefits of the NBN.

The cost-benefit analysis (of the NBN as it is now, not the analysis that should have been provided back in 2007) reveals the multi-technology mix (MTM) model will provide the most bang for the taxpayer’s buck. In the absence of evidence to the contrary, the analysis also shows Labor’s NBN would have been nothing short of extravagant.

But the panel of experts who conducted the cost-benefit analysis are not alone in pointing out the shortcomings of Labor’s romantic ideas about deploying infrastructure.

A recent Productivity Commission report on public infrastructure criticised the NBN for its investment in infrastructure without the use of a cost-benefit analysis. Further, NBN Co’s failure to achieve key targets suggests a lack of detailed analysis in the original proposal.

Even the authors of Labor’s implementation study were at pains to make it clear the study did not “undertake a cost benefit analysis of the macroeconomic and social benefits that would result from the implementation of a superfast broadband network”.

But what about the legacy of Kevin07 and the NBN?

Broadband since Kevin07

The promise of faster broadband played a major role in the 2007 election. The Coalition was caught on the back foot with Australia at the wrong end of the high-speed broadband stakes. Rudd’s promise to deliver ubiquitous fast broadband was clearly a political winner at the time.

An implementation study was conducted to find the best way to meet the government’s policy specifications. A “Rolls-Royce” fibre-to-the-home (FTTH) model was selected as a clear technological winner. In the absence of a cost-benefit analysis, Labor over-confidently decided the NBN should be taxpayer funded and wholly government-owned.

But by the time of the 2013 federal election, the NBN was behind schedule and the costs were mounting. And despite several years of intense policy focus, Australia had not caught up with the rest of the world in access to (Figure 1) or speed of (Figure 2) broadband services.

Figure 1: Fixed-line access per 100 people (Source: OECD, December 2013)

Figure 2: Broadband speeds >15 mbps, (Source: Akamai, Q1 2014)

The move to NBN (lite)

What emerged from Communications Minister Malcolm Turnbull’s promise of a strategic review of the NBN became known as NBN (lite). Instead of FTTH, a fibre-to-the-node (FTTN) network would utilise the multi-technology model to provide consumers with fast broadband (at speeds somewhat slower than Labor’s NBN), but sooner.

The NBN cost-benefit analysis looked at three different scenarios for government action. Each scenario was tested against the net benefits of a base scenario of no further rollout of the NBN, which would result in a net cost of A$24 billion, as follows:

1. Unsubsidised rollout of NBN. This would provide taxpayers with a net benefit of A$24 billion by avoiding the costs associated with no further rollout.
2. Adopt the MTM model. This would provide a net cost of A$6 billion relative to the first scenario.
3. Adopt a FTTP model. This would provide a net cost of A$22 billion relative to the first scenario.

A key finding of the cost-benefit analysis is that delivering broadband services sooner rather than later means benefits accrue while the rollout occurs. Assuming the network is upgraded at some later stage, the benefits continue to accrue while the network is developed. Yet the net benefits of the more expensive FTTH model are less likely to be realised and more likely to decline over time.

Countries such as Canada and the United States have MTM broadband networks and the figures indicate the approach is working. But what rarely appears in the debate about broadband in Australia is a simple fact: some broadband is better than no broadband.

The NBN cost-benefit analysis is long overdue. Although the net cost of the MTM model is some A$6 billion, most of this cost is to serve rural and remote regions with satellite and wireless services in place of fibre.

Taxpayers expect that government will support the bush, and A$6 billion in net costs is hardly a bitter pill to swallow. But taxpayers may well change their tune when ultimately they fund a net cost of A$22 billion for a FTTH model, which in most places won’t be operational for years to come.

Labor’s NBN was a big idea. But without a cost-benefit analysis, it was a reckless use of taxpayer funds made by politicians with no idea. Given the recent findings about how NBN was conceived and implemented, it would take a particularly brave (or foolhardy) politician to ever again implement infrastructure policy on the basis of romantic ideas of what can and cannot be achieved in politics.

While some may lament the end of Labor’s NBN, the cost-benefit analysis reveals the shortcomings of its romanticism. Economics may not be all that romantic, but taxpayers may well be glad the NBN romance is over.

Michael de Percy does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.

This article was originally published on The Conversation. Read the original article.

Australia's Broadband Situation in Perspective

© Depositphotos.com/@reborn55

My formal research project comparing communications technology outcomes in Canada and Australia ended in September 2012. A great deal has happened since. The Coalition came to power and the NBN changed from a predominately FTTH model to a mix of technologies utilising FTTN. For several years, broadband has been firmly fixed on Australia's policy radar. But what difference has it made?

Here I broaden the comparison to include Australia, Canada, United States, United Kingdom, Germany, South Korea, Japan, New Zealand, Switzerland, Hong Kong and Singapore. I wanted to provide a mix of countries that share several characteristics. While I have always argued that you cannot make judgements about Australia's broadband when compared with countries such as Korea and Switzerland, these countries are proving to be some of the most wired jurisdictions on the planet. However, Figure 1 below demonstrates the significant differences in population density that must be taken into account when making global comparisons. These simply cannot be ignored in any comparison of the effectiveness of broadband policies.

Figure 1: Population per square km

As you can see, Australia and Canada with 3 people per square km cannot possibly achieve the same return on capital investment in broadband infrastructure as Singapore, Hong Kong and South Korea. Even New Zealand and the United States, with 17 and 32 people per square km respectively, are in a different league.

Next, we need to consider broadband penetration. Figure 2 shows the number of fixed-line broadband (classified as a minimum download speed of 256kbps - which is not really broadband anymore) connections per 100 people. A better measure is connections per household and while this figure is a more accurate measure of penetration, it is difficult to obtain and the information is not readily available for all countries.

Figure 2: Fixed-line broadband connections per 100 people

Of course, fixed-line broadband is only part of the story, although the usefulness of wireless devices for e-health and e-learning applications is somewhat limited. None of my students, for example, have ever managed to use their e-text successfully on their iPhone, but some broadband is better than no broadband. Figure 3 shows the number of wireless broadband connections per 100 people.

Figure 3: Wireless broadband connections per 100 people

Next, we need to consider broadband speeds. Measuring the highest speed or simply using advertised speeds is not enough: a friend of mine who is connected to NBN and pays for the 100mbps is lucky to get 25mbps, so relying on market information alone is insufficient. In my view, Akamai's use of servers to measure speeds across the globe seems to make a lot of sense. Two measures are useful for comparing cross-country outcomes: average speed and average highest (peak) speeds (based on highest speeds per individual IP address). Figures 4 and 5 below show these measures (respectively).

Figure 4: Average Broadband Speeds

Figure 5: Average Peak (highest) Speeds

Figures 6, 7 and 8 below show the increasingly sophisticated speed groupings based on >4mbps, >10mbps and >15mbps respectively. This tends to show a more robust picture of the speed of broadband services in a particular jurisdiction.

Figure 6: Broadband connections faster than 4mbps

Figure 7: Broadband connections faster than 10mbps

Figure 8: Broadband connections faster than 15mbps

As you can see from the above, Australia, despite some seven years of policy attention directed at broadband, is still at the wrong end of the league tables. Except in wireless broadband, which I believe is due to more competition and a lack of government interest (or perhaps less government intervention) in telecommunications where it is not hard-wired. Indeed, for many Australians who are unable to obtain fixed-line broadband services, wireless is in many cases the only alternative.

It is unfortunate that the tables above do not help to explain why Australia lags and continues to lag. In my PhD research, I compared Australia with Canada and I found that except for mobile telephony, in telegraph, telephone, radio, television, satellite, broadband - you name it - Canada was ahead of Australia in communications technology outcomes in every instance. So the problem is not just a matter of a broadband problem, it is much deeper. Look out for my book on this issue coming soon.

In the meantime, I have blogged about the comparative statistics of communications technologies in Canada and Australia before. As you can see from the comparisons above, despite NBN, Australia's broadband situation has not changed much at all.

Links to data used to develop the above graphs:
     Akamai State of the Internet Report Q1 2014
     Broadband Commission State of Broadband 2013
     OECD Broadband Portal
     World Bank Data 2013
     World Economic Forum Network Readiness Index 2014