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Government: lays the foundations for Australia's digital infrastructure
A thriving digital economy requires world–class infrastructure that can adapt to support future demands. The rapidly changing nature of technology makes it difficult to predict the 'killer applications' that will dominate in five years. However, it is clear that bandwidth demands are increasing. YouTube, a video sharing site launched a mere four years ago, reportedly served over five billion video streams in April 200916 and in 2008 generated more traffic than the entire US internet backbone did in 2000.17 The online auction house eBay holds more than five petabytes of data, rising from 20 terabytes five years ago.18 Industry reports predict the coming age of the zettabyte because 'today's bandwidth hog is tomorrow's average user.19
Technology can also change our infrastructure requirements in unexpected ways. The growth of handheld devices and the potential of sensors and smart meters alter our demands, as well as our habits. To use sensor networks to improve our water productivity, for example, requires reliable and effective infrastructure that connects the farms where this smart technology will be deployed.
Case study: Water Information Networks—improving water efficiency
In many regions water allocations for irrigation need to be ordered one or more weeks in advance and with limited guarantee that orders will be fulfilled. Whilst waiting for the water to be delivered farm requirements may change. But the water that has been ordered cannot be returned to storage and is often 'lost' to production. It has been estimated that the total losses across the Goulburn–Murray Irrigation District due to system inefficiencies have typically been 900GL per annum.20
A Water Information Networks (WIN) project developed by NICTA21 has developed methods for controlling and integrating canal networks with on–farm irrigation systems so that they themselves can become water reserves and make an 'on–demand' water supply available to the farmer. Crop water requirements are measured in real time and this data is used to control canal gates and pumps and deliver the right volume of water to the plant when it requires it. Using this technology dairy trials employing flood irrigation for dairy pasture production used 26 per cent less water and experienced a 27 per cent improvement in water productivity. In addition, the farms in the trial enjoyed a 38 per cent improvement in gross margins measured in dollars earned per hectare.
To prepare for our increasing bandwidth demands and enable the applications and devices of the future, the Australian Government has made a number of key commitments to develop Australia's physical capacity to participate in the digital economy.
The Australian Government has established a new company to invest up to $43 billion over eight years to build and operate a National Broadband Network to deliver superfast broadband.
The Government has also announced key spectrum initiatives that ensure that Australia is making the most productive use of this finite resource. The switchover to digital television will potentially allow spectrum freed up from the switchover—the 'digital dividend'—to be used by industry to develop a range of new communications services including high speed wireless broadband. It will also deliver consumer benefits such as vastly improved service quality and a wider diversity of content for Australia audiences.
The Government is also consulting on the re–allocation and/or renewal of the 15 spectrum licenses for various spectrum bands22 that are primarily used to provide mobile phone and mobile broadband services. The re-allocation and/or renewal process is important for consumers and the competitiveness of the communications sector as a whole and will play an important role in the future of the digital economy.
Government: facilitates innovation
Government can facilitate innovation in the digital economy in three key respects—open access to appropriate categories of public sector information, effective implementation of technology to deliver government services and strategies to increase Australia's innovation and commercialisation capacity.
Open access to public sector information
Victory Theatre by Sam Hood, Sydney, Mitchell Library collections, State Library of New South Wales (Flickr Commons, No known copyright restrictions)
Networked digital technologies empower individuals, private companies and researchers to use and reuse government information in novel ways that can produce economic benefits and promote social wellbeing. This allows anyone with an innovative idea to add value to existing government materials for the common good, often in initially unforeseen or unanticipated ways. It does not limit creative reuse of public materials to those organisations with the time and resources to negotiate licensing terms. As one commentator has argued "[n]o one supplier, public or private, can design all information products required to meet the needs of all users in a modern information–based economy."23 By opening access to appropriate categories of government information to all members of the public, those best placed to innovate can do so and the market can decide which product is most useful.
The popularity of online mapping tools is one example of an application that revolutionises how public information can be viewed, studied and cross–correlated. For example, we can increase our understanding of important public policy issues, such as health. Diabetes Australia24 administers the Australian Diabetes Map25, hosted on Microsoft's Virtual Earth platform. This map combines Australian population data with details about the number of Australians diagnosed with diabetes, their age, gender, location and the type of diabetes that they have.
Open access to appropriate categories of public sector information can drive digital economy and innovation benefits, subject to privacy, national security or confidentiality issues. In this context, 'open access' means access on terms and in formats that clearly permit and enable such use and reuse by any member of the public.
Various international studies26 suggest that the benefit derived from corporate and individual taxes on secondary publishing and service activities stimulated by an open access policy outweighs any direct cost recovery charged for access to data.
Hawkesbury Bridge from Tunnel, Tyrrell Photographic Collection, Powerhouse Museum (Flickr Commons, No known copyright restrictions)
Already, there are several examples of Australian public sector organisations that have adopted an open access approach. The Powerhouse Museum, the NSW State Library and the Australian War Memorial have joined the Flickr Commons project27. This project consists of museums and libraries from around the world publishing their images under a 'no known copyright restrictions' tag to increase access to publicly–held collections and to provide a way for the general public to contribute information and knowledge.
The Powerhouse Museum has analysed its experience of participating in the Flickr Commons for the release of high–value images from the Tyrrell photographic collection.28 The open access approach led to a four–fold increase in visitation, no detrimental effect on income produced from the image sales and user–generated tagging and comments that have been re–ingested back into the Museum's website to enhance search capabilities.29 The Museum concluded that 'a new business model for licensing images is essential.'30
To advise and assist the Australian Government in making public sector information more accessible and usable, the Government has established the Government 2.0 Taskforce.31
e–Government
The internet is now the most common way Australians last made contact with government.32 In fact, more people would prefer to use the internet to contact government than actually do so via any other means. Those who used the internet to contact the government reported a higher level of satisfaction than those who used means such as postal services. The relationship between Australia's citizens and its Government is well suited to transition to the digital economy.
Effective and widespread use by government of technology to deliver services can also contribute to building digital confidence and digital skills throughout the community. For government it can improve efficiencies. As the Organisation for Economic Co-operation and Development (OECD) IT Outlook 2008 notes, e–government activities are a part of government strategies to boost public– sector efficiencies.33
Many examples exist of how the Australian Government can lead by example in the digital economy, such as the Department of Immigration and Citizenship's award–winning34 Citizenship Wizard35 and eVisa program36 and the Department of Infrastructure Transport, Regional Development and Local Government's Green Vehicle Guide.37
| Visa and Citizenship Wizard | Green Vehicle Guide (GVG) |
|---|---|
| The Visa Wizard is an interactive, client self-service tool designed by the Department of Immigration and Citizenship (DIAC) to provide prospective travellers and migrants with tailored information about their visa options. Similarly the Citizenship Wizard provides citizenship information to clients based on their individual circumstances. Both Wizards are easily accessed via the internet 24 hours a day, seven days a week from anywhere in world by clients and staff using the department's website. | The GVG website provides user friendly ratings on the environmental performance of specific vehicle models. It provides tools which enable consumers to readily search, compare and sort on a range of criteria, to develop short lists tailor-made to their vehicle requirements and to print/download results. It also provides data on fuel consumption and enables consumers to estimate annual fuel costs. |
| Impact: The Visa Wizard was launched in September 2008, the Citizenship Wizard was launched in December 2008. The Wizards were awarded the 2009 Australian e-Award for Excellence in e-Government. The wizards are satisfying immediate information needs of an increasingly internet savvy clientele. Combined, they receive an average of over 11 000 views per day. | Impact: Use of the website has increased, from an average of 8500 visits per month in 2004–05 to over 22 800 per month in 2007–08. Many government agencies now use GVG ratings in vehicle fleet purchasing, and the ACT Government uses the ratings to determine new vehicle stamp duty rates to encourage the purchase of low-emission models. The website is recognised as the primary source of environmental information on new vehicles in Australia. |
As part of its Innovation Agenda, the Australian Government has committed to increase the use of ICT to improve policy development and service delivery.38
Promoting a strong culture of commercialising digital innovation
It is important for Australia's digital economy that we enjoy a strong innovation and commercialisation base. The growth of the digital economy will transform existing industries and drive efficiency and productivity. It will also give rise to new industries from carbon capture to online retailing.39 A capacity to both generate innovation and rapidly adapt to the innovation of others will be a key determinant of Australia's ability to exploit the opportunities of the digital economy.
The Australian Government outlined its Innovation Agenda in the Powering Ideas report,40 which notes:
'Too many Australian inventions and discoveries end up being commercialised overseas, where the value they create is captured by others. This costs Australia jobs and wealth, and denies us the chance to build new industries.'41
The Innovation Agenda includes initiatives targeted to grow our innovation and commercialisation capacity. These include measures to renew and expand Australia's publicly–funded research workforce, research infrastructure and machinery for sharing research results through the Sustainable Research Excellence in Universities Initiative, the Collaborative Networks Scheme and investment guided by the Strategic Roadmap for Australian Research Infrastructure.
Initiatives such as Enterprise Connect and a new R&D Tax Credit support innovative businesses and aim to increase the proportion of businesses engaging in innovation by 25 per cent over the next decade.
The new Commonwealth Commercialisation Institute will bring research, business and finance together to help commercialise new ideas and technologies. This will assist Australian firms to get their ideas to market.
To build Australia's innovative capacity, the Government is also supporting research and training carried out by organisations such as NICTA and the CSIRO. NICTA and the CSIRO, through its ICT Centre, are producing the skilled researchers and trained graduates that industry and the broader community needs to take advantage of the innovative opportunities presented by the digital economy. In addition, they are transferring their expertise to the economy more broadly through collaborations, spin–offs, licensing and technology transfer. For example, NICTA has established four start–ups that have already generated 60 new jobs in Australia and provides Australia with world–leading digital economy solutions.
To harness the power of ICT to boost productivity and champion IT–enabled innovation for economic, social and environmental benefits, the Australian Government has formed the Information Technology Industry Innovation Council. The Council will create links with stakeholders to identify opportunities for innovation, wealth creation, IT capability and entrepreneurialism. The Council will also work closely across Government on issues of common interest to ensure we realise the benefits that will flow from Australia's new National Broadband Network.42
Case study: The Bionic Eye—how technology can reduce vision impairment
Retinitis Pimentosa (RP) and Age Related Macular Degeneration (AMD) are major causes of vision impairment in Australia. Retinitis Pigmentosa is a congenital eye disease that progressively worsens with age and leads to total blindness. One out of every 3500 children are born with RP and it affects 1.5 million people worldwide.43 Patients with advanced forms of AMD have difficulty recognising faces and have reduced mobility and quality of life. It is estimated that AMD alone currently costs the Australian economy $2.6 billion and this is projected to increase to $6.5 billion by 2025.
The development of a bionic eye by 2020 was identified in the Australia 2020 Summit as an example of an innovative health technology that could improve the lives and wellbeing of all Australians. It is being developed in partnership with NICTA, the University of Melbourne (UoM), the University of New South Wales (UNSW), the Bionic Ear Institute (BEI) and the Centre for Eye Research Australia (CERA).
Some of the core technology that enables the bionic eye to function is provided by NICTA. NICTA's technology contributes a new retinal implant that provides very dense electrical stimulation of the retina. This allows high resolution vision. NICTA's technology also involves the use of a world–leading, extremely small, ultra low power wireless communication system that can be implanted into an eye. This system facilitates the efficient transfer of information between the implanted retinal prosthesis and an external camera. It eliminates the need for wires to pass through the eye and greatly reduces potential complications, trauma to the eye and the possibility of future infection.
Government: sets conducive regulatory frameworks
Regulatory restructures are important to provide business certainty, address market failures and protect the interests of consumers. If not carefully constructed, however, regulation can stifle innovation and investment, particularly in dynamic areas. The digitisation of commerce means that Australian companies are also increasingly competing directly with foreign businesses, even if those same businesses are based off–shore and operating under different regulatory structures. Governments must continue to review regulatory structures as technology and markets evolve. Ongoing review allows these frameworks to continue to provide an environment in which businesses can grow and consumers can act with confidence.
Two key areas of relevance to the digital economy are copyright law and Australia's communications framework.
With respect to copyright law, some industry participants have queried whether an examination of the scope of Australia's 'safe harbour scheme' would be beneficial, in particular whether its scope, consistent with international obligations under the Australia–US Free Trade Agreement, should be expanded to encompass a larger range of online services that are important to the digital economy. The purpose of the safe harbours is to ensure that entities who come within them and take reasonable measures to deter unauthorised instances of copyright infringement, have the benefit of reduced potential copyright liability. In short, that the remedies available against those online service providers are limited if they have taken steps to prevent against the infringement of copyright.
At present it is unclear whether the present scheme works effectively for some types of online service providers that have subsequently grown in popularity since the scheme's introduction. The platforms provided by newer online service providers allow social engagement, content distribution and political communications, through features frequently referred to as user–generated content and Web 2.0. This includes social networking sites such as MySpace, Bebo and Facebook (which launched in 2003–05), the online photo sharing site Flickr (which launched in November 2004), and video sharing sites like YouTube and Vimeo (which launched in 2004–05). Available data suggests that an increasing number of Australians use these sites.44
The Australian Government will consider whether the scope of the 'safe harbour scheme' should be expanded to include additional types of online service providers.
With respect to our communications legislation, the trend of convergence is challenge existing regulatory structures. With the increased offerings of both fixed line and mobile broadband services throughout the world, converged applications and services that blur the distinctions that previously existed between devices and services are growing in popularity. For example, the general purpose nature of computers allows them to be used for more than just information processing. They are increasingly used for telecommunications services via Voice–Over–Internet–Protocol applications or for entertainment via internet protocol television, streaming or downloadable media.
As outlined in the National Broadband Network: Regulatory Reform for 21st Century Broadband Discussion Paper,45 the Government will continue to work with industry bodies to tackle many of the regulatory challenges. However, the regulatory reform process that is currently underway in connection with the National Broadband Network will likely have significant implications for regulatory structures that are relevant to a converged world. It is logical to wait until the new arrangements are further advanced before launching a full–scale review of convergence– related issues. This will enable consideration be given to the implications of the new structural arrangements resulting from the roll–out of the new network. The Australian Government therefore intends to consider whether to look again at its overall approach to regulation in a convergent environment.
Return to Elements of a Successful Digital Economy
[16] Nielson, 'YouTube Leads Video Streams as Hulu Grows 490% from Last Year', 14 May 2009 (last accessed: 25 June 2009).
[17] Cisco, 'Approaching the Zettabyte Era' June 16, 2008, p. 8
[18] Ben Woodhead, 'eBay maintains a watching brief', Australian Financial Review 9 June 2009
[19] Supra n 14, p. 12.
[20] Department of Sustainability and Environment and Dept of Innovation, Industry and Regional Development, Modernising Victoria's Food Bowl: Irrigation Modernisation, June 2007.
[21] NICTA is the National ICT Australia Limited (NICTA), established through the ICT Centre of Excellence program. NICTA undertakes ICT research at the highest international standard as well as associated research training, industry development and commercialisation. See: http://nicta.com.au/.
[22] Specifically the 800MHz, 1.8GHz, 2.1GHz, 2.3GHz, 3.4GHz, 20GHz, 27GHz, 28GH, 30GHz and 31GHz bands.
[23] Peter Weiss, Borders in Cyberspace: Conflicting Public Sector Information Policies and their Economic Impacts, p. 2. (last accessed April 22, 2009).
[24] Diabetes Australia is the national peak body for diabetes in Australia. The body works in partnership with diabetes health professionals, educators and researchers to minimise the impact of diabetes.
[25] Diabetes Australia, National Diabetes Services Scheme, April 2009.
[26] Supra n 20, p. 13-15; see also, 'Power of Information Review: An independent review by Ed Mayo and Tom Steinberg' (June 2007), p. 34–35 (last accessed: 25 June 2009).
[27] See www.flickr.com/commons
[28] See www.flickr.com/photos/powerhouse_museum/
[29] See www.abc.net.au/innovation/sidetracks/
[30] Bray, P., Open Licensing and the Future for Collections. In J. Trant and D. Bearman (eds). Museums and the Web 2009: Proceedings. Toronto: Archives & Museum Informatics. Published March 31, 2009 (last accessed: 25 June 2009).
[31] See gov2.net.au/about/.
[32] Department of Finance and Deregulation, Interacting with Government: Australians' use and satisfaction with e-government services (2008) p. 1 & 4 (last accessed: 25 June 2009).
[33] OECD's 2008 Information Technology Outlook, p. 308 (last accessed: 25 June 2009).
[34] For information about other e-government award winners.
[35] See www.citizenship.gov.au/citizenshipwizard/
[36] See www.immi.gov.au/e_visa/
[37] See the Green Vehicle Guide website.
[38] Department of Innovation, Industry, Science and Research, Powering Ideas (May 2009) pg 53 (last accessed: 25 June 2009).
[39] Id., p. 13.
[40] See generally id.
[41] Id., p. 3.
[42] Senator the Hon Kim Carr, 'Information Technology Industry Innovation Council', Media Release, 5 May 2009 (last accessed 25 June 2009).
[43] CERA / Access Economics, Centrally Focused, The Impact of Age Related Macular Degeneration (2006).
[44] Australian Communications and Media Authority, Telecommunications Today, (Sept. 2008) p. 24 (last accessed: 25 June 2009).
[45] Department of Broadband, Communications and the Digital Economy, National Broadband Network: Regulatory Reform for 21st Century Broadband Discussion Paper, p. 48-49 (last accessed: 25 June 2009).
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