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The National Broadband Network (NBN) represents the future generation of infrastructure and mode of communication. In the 21st century, the world is advancing at a rapid pace and Australia is also taking part in these technological advancements. According to the Prime Minister of the country, a slow internet connection is one major hindrance in the path of growth. Economic activities are highly dependent on the flow of information. Different communication channels lead to the identification of investment opportunities. Hence, a speedy connection of broadband would boost up economic activities and enlighten the future of the economy. Therefore, the Government of Australia has taken the initiative to connect every individual via the broadband network. It is imperative to ensure that all citizens gain access to the NBN. The project has been started in the year 2010 and is due for completion by the year 2015 (NBNCO, 2013). ‘Fiber to the node’ network A fiber optic network is a network of multiple nodes. By implementing fiber optic, the system designer can create a passive medium of network consisting of several nodes. The presence of multiple nodes makes the distribution network system safe and reliable (Cobo, 2012). By using a single mode of operation, the speed of information transfer might be increased up to 1 gigabit per second. The error rate of high speed optical networks has been found to be quite less and acceptable (Cobo, 2012). When a good broadband infrastructure is combined with highly advanced information technologies, it becomes capable of affecting productivity of firms operating in the economy and boosting economic growth. Common households across the country would be able to connect with one another, which fosters national integration. Highly effective broadband infrastructure creates additional ways in which the economic growth of the country might be augmented. Advanced information technologies can change as well as improve the method of processing information that results in higher involvement of IT firms, which implies the creation of new employment opportunities. Fiber to the node network allows the companies to implement processes, such as e-procurement, customer services, e-billing as well as make recruitment online using the internet network connection. The IT division of the firms, thus, makes a noteworthy contribution in the (long-term as well as short-term) performance of the firm, through its interactions with the other functionaries of the firm (Zyskind and Srivastava, 2011). Characteristics of NBN Broadband internet connection enables exchange of information and data across the different agents in the economy located in multiple locations. Through implementation of a high speed internet broadband network, companies would be able to manage their functions and operations in a decentralized manner of information processing. In the Australian economic system economic agents use available information as input for generating new output. The NBN in Australia would facilitate this process of information management. In this process, the nationwide network of internet would allow the firms as well as individual users to weigh and evaluate information before taking actions on the basis of that information. It leads to multiplication of data that benefits all actors in the economy. The NBN is a cost ...Show more

Summary

Finance and Accounting Table of Contents Introduction 3 ‘Fiber to the node’ network 3 Characteristics of NBN 4 Economic rationale for the government 5 Efficiency and equity objectives 6 Conclusion 7 Reference List 9 Answer 1: Introduction In the year 2009, the Australian government had made an official announcement regarding the development of “a super-fast National Broadband Network” (Picot et al., 2010)…
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