KEY POINTS:
Money spent expanding a super-fast broadband network for the research and education sector has the power to generate millions in private sector benefits, according to a report out today.
State-owned network operator REANNZ has released findings which show every dollar spent on developing its high-speed network linking Crown Research Institutes, universities, schools and their overseas equivalents could result in $4 worth of benefits.
REANNZ (the Research and Education Advanced Network New Zealand) pools the money of its members to purchase bandwidth, often tipping the business case for network investment by the big telco players.
In the month to date its members have sent more than a petabyte of data - the equivalent of quarter of a million DVD movies.
The report links an estimated $200 million a year in economic benefits to having access to high-speed networks.
REANNZ chief executive Donald Clark said there is a proven association between increased network speeds and improved research productivity.
From the $51 million needed annually to maintain and expand their network, $60 million of productivity and efficiency gains could be delivered to the high-end research and education sector.
Even applying half the expected productivity gains to only 10 per cent of New Zealand researchers could deliver $20 million of economic benefits, he said. The report states the flow-on effects of high-speed internet networks to the wider community and businesses could equate to more than $160 million a year.
"The biggest benefit of KAREN (Kiwi Advanced Research and Education Network) is not actually on that supply side. It's actually on the demand side," said Clark.
Although less solidly proven than the productivity gains, he said the basis for the claimed benefits is the belief that exposure to information technology drives further uptake.
"The only way this country is going to survive is actually if it's going to become world class at leveraging remote communication technologies because there is only so long we can get value out of selling milk powder and logs," said Clark.
