Deloitte says NBN brings households AU$3,800 benefits

Deloitte says NBN brings households AU$3,800 benefits

Summary: The National Broadband Network could save households thousands of dollars by the end of the decade through better productivity, cheaper communication, and reduced travel costs.

TOPICS: NBN, Government AU

A Deloitte Access Economics analysis for the government says the average household would get AU$3,800 in benefits each year by 2020 through using the NBN.

It quantifies the savings, in 2013 dollars, for communications, e-commerce, online entertainment services, travel savings, employment by teleworkers and productivity.

"Added together, these estimates suggest very significant household benefits from broadband," the report, posted on the broadband department website, states.

But it notes that the estimates don't take into account the costs of broadband or equipment like modems and computers.

It cautions that the report is not a cost-benefit analysis of high-speed broadband.

"Many of the benefits will emerge gradually, as consumers find price discounts and variety online, as more employees are allowed to telework, and as people get more accustomed to accessing services online," the report states.

"There will be a lot of change from the broadband revolution, and there will be a gradual transition this decade."

Labor intends to highlight the report on Wednesday, saying that it shows the NBN will not only transform the Australian economy and improve national competitiveness, but also directly benefit every family.

Opposition communications spokesperson Malcolm Turnbull yesterday accused the government of running a scare campaign on broadband's possibility to affect property prices.

"I think Anthony Albanese is just getting a bit desperate," he said.

"He's trying to run a property price scare on Tuesday, I would say by Friday, you can mark your cards for this, he'll be saying that the Coalition's NBN if implemented will make your teeth fall out and your hair turn white and other dreadful physical manifestations to appear."

Topics: NBN, Government AU


Chris started his journalistic adventure in 2006 as the Editor of Builder AU after originally joining CBS as a programmer. After a Canadian sojourn, he returned in 2011 as the Editor of TechRepublic Australia, and is now the Australian Editor of ZDNet.

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  • This news does not surprise me at all. The proper NBN would make many things we do much more efficient. That is the benefit of rolling out a far more efficient network and one that is more consistent. What does the copper ghetto have to offer us? Not much except higher prices, higher power requirements, slower speeds, no consistency and more headaches.
    Hubert Cumberdale
  • Read the full report

    Clearly not a CBA. Benefits described are benefits of the internet, realisable with any broadband Internet connection.

    Calculations are the best though. Take household benefit of $269 per year for "online movies and games": We calculate the consumer surplus associated with this increase in spending, and then divide it by 3 (1 minus an elasticity of substitution of 4) to reflect the next best alternative of that spending.

    Other savings calculated on third party numbers (not substantiated): eg go visits save based on govt e-health targets of telegraph consultations, estimating the proportion of tertiary students "saying" they find online education a substitute for in-person education (what do their Parker think;-), we assume telework increases by an additional 6 per cent by 2020 to the Government’s target level of 12 per cent (why?), we use the travel time to work estimate of 55 minutes from the ABS time use survey (2006) (why would that figure be representative of teleworker positions, especially related to expansion of participation rates), etc.

    It'd be funny if the report didn't cost millions.
    Richard Flude
    • "Benefits described are benefits of the internet, realisable with any broadband Internet connection."

      Any broadband internet connection will do. ADSL2+ ftw. Coalition clown plan null and void. Save $30+billion. Stop the waste. yay internet!
      Hubert Cumberdale
    • I save almost 3000 without all the rest

      I'm on the NBN and I cant imagine going back to ADSL2+...... I was lucky to get 4mbs.

      Upload... forget it