• Department of Broadband, Communications and the Digital Economy

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15 July 2011This study reports on the potential for small businesses and community organisations to take advantage of the National Broadband Network (NBN). It has been informed by a series of targeted focus groups with small business and community organisations held across the NBN’s first release areas (Brunswick, Townsville, Kiama, Armidale and Willunga).

Current Internet use among small business and community organisations in NBN first release areas

Across the first release areas, small businesses and community organisations use the Internet in a variety of ways and with varying degrees of sophistication. Some organisations are notably active on the web — offering services through well-developed platforms. Others use the Internet only to provide potential customers with basic information.

Web presence in each area is typically influenced by the nature of the economic activity being undertaken in each area. Notably, web presence was generally greater for some industries (such as accommodation, cafes and restaurants) than others (such as construction and manufacturing), generally reflecting what industries could offer in terms of online services.

Participants in each of the focus groups emphasised the importance of the Internet for communications. Email in particular was regarded as ‘critical’ and ‘vital’ to business/organisation operations with many using Email as their primary means of communication.

Opportunities presented by the NBN

Participants in the focus groups were generally interested in what the NBN would be able to deliver and positive about the opportunities it presented.
In particular, participants identified opportunities regarding how the NBN might improve how they interacted with their customers/service recipients. Examples include:
•    the ability to sell/market their products online with a greater use of graphics, high-definition video and other multi-media;
•    the potential for tools that enhance person-to-person visual communication to bring groups and individuals together;
•    profiling for television ads based on specific characteristics of the viewer’s own browsing and viewing habits as a new way to market products;
•    the use of Point of View video technology to enhance the online shopping experiences; and
•    the development of smart phone-like applications and products.

Participants from small businesses typically agreed that high-speed broadband offered great potential to develop new products and services as well as access new markets. Participants from the community sector however, were notably less able to envision how high speed Internet could assist them in offering their services — with health-related organisations being the exception. Some of the potential new products mentioned at the focus groups are listed in the table below.

Stakeholders also made the point that the NBN should be considered as a means of transportation, rather than as the destination. They thought that the NBN itself would not provide the content, but rather a means through which that content would be disseminated. High-speed broadband would help foster innovation, but ultimately it will be up to the small businesses themselves to use the technology in new and creative ways.

Report by the Allen Consulting Group Pty Limited for the Department of Broadband, Communications and the Digital Economy.