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<DIV>----- Original Message ----- </DIV>
<DIV style="FONT: 10pt arial">
<DIV style="BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A
title=pbc@budde.com.au href="mailto:pbc@budde.com.au">pbc@budde.com.au</A>
</DIV>
<DIV><B>To:</B> <A title=bpark@theage.fairfax.com.au
href="mailto:bpark@theage.fairfax.com.au">bpark@theage.fairfax.com.au</A> </DIV>
<DIV><B>Sent:</B> Tuesday, December 17, 2002 1:23 PM</DIV>
<DIV><B>Subject:</B> Broadbanding of Local communities - Outcome of
Summit</DIV></DIV>
<DIV><BR></DIV>Dear Barry, <!-- If you are unable to view the rest of this email, please contact BuddeComm via www.budde.com.au/contact.html -->
<P align=center><IMG height=83 src="http://www.budde.com.au/images/logo.gif"
width=130></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: left"
align=left><B><FONT color=#000080 size=4>The Broadbanding of Local
Communities</FONT></B></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: left"
align=left><B><FONT color=#ff8040>Outcome of the Local Government
Summit</FONT></B></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><FONT size=2></FONT> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><FONT size=2>Some sixty
participants recently attended the Local Government Summit on the broadbanding
of local communities. The Summit, initiated and organised by Paul Budde,
was recently held in Sydney. Among those present were representatives from
local councils from the Sydney metro area, Adelaide, Perth, Brisbane, Canberra,
Gold Coast, Townsville, Bathurst, Bendigo, Mildura, La Trobe, Newcastle, Snowy
Mountains, Port Stephens, Lake Macquarie and Bathurst, as well as regional economic development managers from South Australia and Tasmania, and State and
Federal Government. Members of the telecommunications industry also
attended.</FONT></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><FONT size=2></FONT> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><FONT size=2>The aim of the
Summit was to empower local councils to take charge of building a local
knowledge-based society on new broadband networks. The delegates heard
presentations from executives involved in several local initiatives:</FONT></P>
<UL style="MARGIN-TOP: 0cm" type=disc>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l2 level1 lfo1; tab-stops: list 36.0pt"><SPAN
lang=EN-US style="mso-ansi-language: EN-US"><FONT size=2>Carl Gazia from
Bright spoke about the broadbanding of Perth, using both underground and aerial infrastructure from Western Power, the local electricity
utility.</FONT></SPAN>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l2 level1 lfo1; tab-stops: list 36.0pt"><SPAN
lang=EN-US style="mso-ansi-language: EN-US"><FONT size=2>Bruce Winzar shared
his more than five years’ experience in successfully developing
telecommunication and IT services for residents and businesses in the City of
Greater Bendigo.</FONT></SPAN>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l2 level1 lfo1; tab-stops: list 36.0pt"><SPAN
lang=EN-US style="mso-ansi-language: EN-US"><FONT size=2>Phil Herrick, the
General Manager of Southern Phone in Moruya (NSW), demonstrated a
down-to-earth strategy. After several years of hard work, persistence is finally paying off with a $4.7 million government subsidy to broadband several
communities on the south-east coast of NSW.</FONT></SPAN>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l2 level1 lfo1; tab-stops: list 36.0pt"><SPAN
lang=EN-US style="mso-ansi-language: EN-US"><FONT size=2>John Freeman, the CEO
from Neigbourhood Cable, with broadband projects in Mildura, Geelong and Ballarat, proves that it is possible for smaller regional communities to operate profitable broadband networks. Thirty other communities have requested
their help.</FONT></SPAN>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l2 level1 lfo1; tab-stops: list 36.0pt"><SPAN
lang=EN-US style="mso-ansi-language: EN-US"><FONT size=2>Michael Delgigante,
the CEO of TransAct in Canberra, represented one of the world’s most
progressive broadband projects. He not only confirmed high uptake rates but,
as most people are going for the full services bundle, also demonstrated an
excellent outlook for good profitability.</FONT></SPAN></LI></UL>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2>Paul Budde presented the Broadband
Agenda – a council- or region-driven plan for the development of broadband and
the strategies that should flow from it.</FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2></FONT></SPAN> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><FONT size=2>As awareness of the
potential of broadband is increasing daily, cities, regions and communities are
beginning to perceive the social and economic benefits that can be derived from
this technology. It is therefore of critical importance that cities and regional
authorities take charge of the development of their knowledge-based
environments.</FONT></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><FONT size=2></FONT> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2>A proactive local government is a
vital element in the development of broadband – one that is potentially capable
of delivering community benefits in education, healthcare, community services,
job creation and export.</FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2></FONT></SPAN> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2>The council/community should be in
charge, otherwise there is a danger that operators will come in and grab the
best opportunities, leaving the less attractive remainder in the hands of the
councils. Before operators are given the go-ahead for such projects local councils should set their Broadband Agenda and use their influence to ensure a
comprehensive roll-out of broadband throughout their community. This can be done
in stages – for example, business and government users first – but it should be
clearly defined within the parameters of a bigger-picture
plan.</FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2></FONT></SPAN> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2>The Federal Government’s Inquiry
into regional telecommunications (Estens Report) unambiguously states that government funding will be required in order to get these broadband plans underway. I estimate that up to one-third of broadbanding projects is
economically unviable and will require government assistance.</FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2></FONT></SPAN> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2>There are several options for
local government to explore:</FONT></SPAN></P>
<UL style="MARGIN-TOP: 0cm" type=disc>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l0 level1 lfo2; tab-stops: list 36.0pt"><SPAN
lang=EN-US style="mso-ansi-language: EN-US"><FONT size=2>Facilitating
roll-outs through cooperative planning procedures.</FONT></SPAN>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l0 level1 lfo2; tab-stops: list 36.0pt"><SPAN
lang=EN-US style="mso-ansi-language: EN-US"><FONT size=2>Becoming an anchor
tenant for a range of local government and community services.</FONT></SPAN>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l0 level1 lfo2; tab-stops: list 36.0pt"><SPAN
lang=EN-US style="mso-ansi-language: EN-US"><FONT size=2>Negotiating
assistance and participation from the State Government – for example, by
providing education, community and healthcare service via broadband; regional
development support funding and access to or participation in a range of other
social and economic projects and funding mechanisms.</FONT></SPAN>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l0 level1 lfo2; tab-stops: list 36.0pt"><SPAN
lang=EN-US style="mso-ansi-language: EN-US"><FONT size=2>Facilitating
community discussion on the topic and establishing a local Knowledge-Based
City Centre to showcase and coordinate the various local
projects.</FONT></SPAN></LI></UL>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2>Once the council has a Broadband
Agenda in place technical partners can be invited to implement the broadbanding
plan.</FONT></SPAN></P>
<P class=MsoFooter style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2></FONT></SPAN> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2>The Summit came up with three key
drivers in the broadbanding of local/regional government
areas:</FONT></SPAN></P>
<UL style="MARGIN-TOP: 0cm" type=disc>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l3 level1 lfo3; tab-stops: list 36.0pt"><FONT
size=2><B><SPAN lang=EN-US style="mso-ansi-language: EN-US">Creation of wealth
</SPAN></B><SPAN lang=EN-US style="mso-ansi-language: EN-US">- with the
slowing down of many traditional economic resources – such as agriculture,
manufacturing, fisheries, mining and logging – new ways of wealth creation
need to be explored, and broadbanding is one of the most important options
that exist for local communities. Both Bendigo and the cities on the NSW South
Coast are beginning to reap the benefits of this, with young people coming
back and starting IT&T-based activities over new broadband
networks.</SPAN></FONT>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l3 level1 lfo3; tab-stops: list 36.0pt"><FONT
size=2><B><SPAN lang=EN-US style="mso-ansi-language: EN-US">Job creation –
</SPAN></B><SPAN lang=EN-US style="mso-ansi-language: EN-US">many people
prefer the lifestyle associated with living in regional areas, and broadband
gives them the ability to work from remote places. Our own company is living
proof of this – we operate from Bucketty in the Lower Hunter Valley, yet over
30% of our revenue comes from overseas.</SPAN></FONT>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l3 level1 lfo3; tab-stops: list 36.0pt"><FONT
size=2><B><SPAN lang=EN-US style="mso-ansi-language: EN-US">City marketing
(telematics) –</SPAN></B><SPAN lang=EN-US style="mso-ansi-language: EN-US">
broadband is making (regional) cities more attractive to business investments
and residential home-buyers.</SPAN></FONT></LI></UL>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><B><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT color=#000080>Plan of
action</FONT></SPAN></B></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2>Local councils were invited to
take with them the information provided at the Summit and begin working on their
own Broadband Agenda. At the Summit several cities expressed interest in
follow-up presentations to councillors and other local government, community and
business leaders.</FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2></FONT></SPAN> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2>I envisage the next step as
follows:</FONT></SPAN></P>
<UL style="MARGIN-TOP: 0cm" type=disc>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l1 level1 lfo4; tab-stops: list 36.0pt"><SPAN
lang=EN-US style="mso-ansi-language: EN-US"><FONT size=2>If a local council is
in a position to independently organise and fund its own Broadbanding Summit
the next stage is straightforward.</FONT></SPAN>
<LI class=MsoNormal
style="MARGIN: 0cm 0cm 0pt; mso-list: l1 level1 lfo4; tab-stops: list 36.0pt"><SPAN
lang=EN-US style="mso-ansi-language: EN-US"><FONT size=2>If, however, some
councils encounter problems, I suggest that the industry could assist in sponsoring a follow-up event. Quite a few key industry players attended the
Summit – Telstra, Alcatel, Ericsson, Energy Australia, Comindico, NDC, NOIE,
SPAN, Marconi, Emtelle and NEC. These organisations could act as sponsors,
provided that they acknowledge the principle that the councils should set the
agenda and that their role is one of partnership. I am more than happy to act
in a facilitating and coordinating role to get these events off the
ground.</FONT></SPAN></LI></UL>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2></FONT></SPAN> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2>As a result of this Summit at
least three mini-Summits are planned for early next year (two in NSW and one in
SA) and another one in Victoria could follow soon.</FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2></FONT></SPAN> </P>
<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SPAN lang=EN-US
style="mso-ansi-language: EN-US"><FONT size=2><EM>Paul
Budde</EM></FONT></SPAN></P>
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