NBN - Slight Return

OK, I wanted to stay focussed on potential NBN applications, but recent comments by Wayne Swan really demand a response. Wayne Swan claims that not developing a high speed broadband network would be "the same as sending our jobs overseas".

Let us just ponder on the logic of this for a second. What makes Wayne Swan think that increased consumption of technology services with an NBN would result in job creation in Australia? In fact better communications in general tend to make offshoring a more viable proposition. Improvements in voice communication over the last ten years have led to major losses of local call centre jobs. There is no doubt that video production and consumption will go the same way. If you want to promote local technology industries and improve local job opportunities than invest in education and skills development. Don't just stimulate increased local consumption.

The most relevant example I can think of is the broadcasting industry.People used to think that the introduction of  colour television back in the 70s would stimulate the local television production industry. Of course all that happened was consumers choose to watch television shows produced overseas in colour, as no one had bothered to get the local production companies up to speed before the technology took off.

The NBN today is as bad an idea for stimulating local jobs as would have been subsidising colour television sales in the 70s. Australians get to watch reruns of "Farmer wants a Wife" in grainy low res and Americans get Hulu. It might be an idea to think about this for a second. How is that for a competitive marketplace :).

The idea that improvements in broadband speed and coverage would be directly responsible for jobs in Australia, without any concurrent investment in supporting Australian technology industry, is the worst kind of parochial, protectionist, antiquated and delusional propaganda. In fact the exact opposite is the more likely scenario, that better connectivity offers consumers more competitive services. And based on the current government's lack of vision the more competitive services are almost certainly likely to come from India and the US.

The only way to prevent the exodus would be to do something really stupid like block access to services outside Australia with a giant filter. Oh, hang on :).

Of course you can't do this overtly, as the WTO would not take kindly to such protectionist measures. Therefore you would have to justify it based on copyright violations or some other such nonsense. I fail to understand how you violate copyright by purchasing something legally from another country, whether it is a product or service. So much for bilateral free trade agreements. Does anyone really that it is a coincidence that attempts to remove protectionist laws for local publishing and music distributors have failed? You always have to consider the bigger picture.

Just how long does anyone think the floodgates can be held back? Outdated ideas to stimulate an artificial sense of scarcity are not an option for gambling on the future of our national prosperity. There is no such thing as scarcity in the digital age.