Transcript Re-aligning the ICT, Electrical and Electronic Sector Strategy

Technology Breakfast – Upload your Future
Careers in ICT Program
28April 2010, Melbourne
Dr. Bill Petreski
Principal Adviser – Technology Industry
Australian ICT Industry: Key Facts & Figures

The Australian ICT market is worth over A$97.8bn: Total income from sale,
distribution & provision of ICT goods & services1
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There are more than 30,300 ICT related businesses employing more than
393,900 people as at Aug. 20081. A further 88,700 ICT workers across other
sectors.
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The ICT industry accounts for some 4.6% of Australia’s GDP2 boasting a larger
contribution than mining, education, defence, agriculture and individual
manufacturing sectors for the same period.
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Australian ICT exports amounted to A$5.175bn ($3.02bn in goods and $2.155bn
in services). Markets include USA, UK and ASEAN.

Major imports of ICT amount to A$26.1bn ($22.89bn in goods and $3.209bn in
services). Sources include China, ASEAN and USA.
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ABS 8126, Information and Communications Technology Australia 2006-7, Oct. 2008
ABS 5259.0, ICT Satellite Account 2002-3, Mar. 2006
3 Department of Foreign Affairs & Trade (DFAT), ICT Trade Data Analysis for 2006-7, Aug. 2008
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Australian ICT Industry
 Estimated to be the 12th largest market globally and the 5th in AsiaPacific ($80-100billion annually)
 Scores high on the Economic Intelligence Unit 2009 figures are strong
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Rank 6th on global e-readiness scale along with Singapore and Hong
Kong. 1st in Asia Pacific.
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Rank 1st on global Technology Infrastructure
Rank 2nd on Productivity and Efficiency to Hong Kong
Rank 1st -3rd in last 5 years for Economic Resilience
 Australia has >80% penetration of broadband in households compared
to India which has <10% penetration.
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Australian ICT Industry
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Australian ICT Industry: IT Expenditure
IT Expenditure

The Australian market is larger than
the combined ICT markets of Hong
Kong, Thailand, Malaysia and
Singapore.
Electrical &
Electronics
Telecommuni
cations
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Telecommunications generates more
than 40% of ICT industry revenues.
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In terms of software royalties,
Australia imports A$0.941bn and
only exports A$0.195bn.
Technology,
Hardware &
Equipment
Software &
Services
0
20
40
60
Expenditure by Sub Sector (A$bn)
Source: World Information Technology and Service Alliance, Digital Planet 2008
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Australian ICT Industry: IT Expenditure
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IT Expenditure
Australian organisations will spend
around A$24bn on ICT during 09/10
representing 4.3% decrease from
previous financial year.
Consumer
Staples
Materials
Verticals anticipated to enjoy 5-7%
CAGR over 2008-11 include
Education Services, Healthcare,
Transportation, Energy & Utilities and
Telecommunications.
ICT spending by the healthcare
market in Australia will grow from
A$2,076 million in 2008 to A$2,378
million by 2012, which will provide a
CAGR of 3.5% for the forecast
period.
Health Care
Industrials
Untilities
Telecommuni
cations
Government
Financials
0
5
10
15
% of operational expenditure
Source: World Information Technology and Service Alliance, Digital Planet 2008
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National Broadband Network
 Australia’s largest PPP and one of the most ambitious infrastructure
projects we have embarked upon.
• Investment of up to $43-billion over 8 years
• Setup new company 51% Government and 49% private with Sell down in
8 years
 The National Broadband Network will;
• Connect 90% of all homes, schools and workplaces delivering speeds of
up to 100 mega-bits-per-second (Mbps) – 100 time faster than currently
available.
• Connect all other premises with a combination of wireless and satellite
services that will deliver speeds of up to 12 Mbps
• Directly support up to 25,000 local jobs every year over the next 8 years.
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National Broadband Network
Internet
Legacy
Per Subscriber
Voice
IPTV
High Speed Internet
Multi-Service
Voice
IPTV
Online Services
Managed Gaming
Managed Video
Managed VoIP
High Speed Internet
Multi-Application
Per Subscriber
Per-Service
Per Subscriber
Per-Service
Per-Application
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Long Term Investments & Opportunities
Transport
Electricity
 Intelligent transport technologies &
systems
 Improve safety
 Create 30,000 jobs
 Increase NPV of GDP by $12-26 billion
over 10 years
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Broadband
Water
Smart Grid Technology & Systems
Invest $3.2-billion over 7 years
Lower electricity use by 4%
Create 17,600 jobs
Increase NPV of GDP by $7-16 billion
over 10 years
 The NBN will facilitate new services &
Business models
 Invest $43 billion
 Create 33,000 jobs by 2011
 Increase NPV of GDP by $8-23 billion
over 10 years
 Adopting smart sensors in
Murray/Darling
 Reduce water use by 15%
 Create 800 jobs
 Increase NPV of GDP by $0.5 billion
over 10 years
Health
 E-Health including telemedicine
 Invest $6.3 billion in health records
system
 Create 12,000 jobs
 Increase NPV of GDP by $6-13 billion
over 10 years
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Long Term Investments & Opportunities
E-Health
Tele-diagnostics
Monitoring of health indicators
Secure health records
Training of health professionals
E-Education
Wider & Better access to knowledge
ICT Literacy development
Distance e-learning
E-Employment
Development of ICT workforce
Tele-working
Water
Gas
Electricity
Broadband
E-Government
Enhanced public services delivery
Public administration efficiency
Transparency
E-Environment
Public Alert system
Climate monitoring
Carbon offset
E-Business
Extend access to customers
Efficient payment throughout supply chain
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Economic and Social Impact
Broadband Network & Services
Economic
Social
•Increased ability to communicate
•Increased access to information/knowledge
•Increased access to markets
Stimulus
•Superior health services
•Increased education opportunities & resources
•Increased access to government
•Increased skills development
•Increased innovation/creativity
•Increased education level
New Business ideas & opportunities
Jobs & economic development
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Australian Government Policy
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The Australia's Digital Economy: Future Directions paper provides the vision for
government taking strategic and enabling action now to ensure all parts of
Australia benefit fully from the digital economy.
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These include Australian Government commitments such as:
• Digital Switchover
• Digital Dividend
• National Broadband Network
• Digital Education Revolution
• Digital Regions Initiative
• National Energy Efficiency Initiative
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Energy Efficiency
Source: Department of the Environment, Water, Heritage and the Arts
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Federal Budget
 Lift the pace of productivity growth;
 Enable and encourage high rates of workforce expansion and
participation in the paid workforce;
 Ensure fundamentally strong budget positions across the federation;
and
 Facilitate appropriate levels of investment in economic and social
infrastructure - including those investments required for a growing
population.
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Ai Group proposes measures to;
These critical longer-term considerations lie behind Ai Group’s proposals
for a Budget that allocates increased resources to:
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Education;
Innovation;
Productivity; and
The development of business capabilities
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Conclusion
Contacts
Dr. Bill Petreski
Principal Adviser – Technology Industry
Email: [email protected]
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