By CASEY NEILL
SLOW internet is costing Melbourne’s south east millions of dollars and thousands of jobs, according to a new report.
Southern Melbourne Regional Development Australia (RDA) Committee and Greater Dandenong, Kingston and Frankston councils released a study into the economic effects of a lack of National Broadband Network (NBN) access.
They are using the results to urge NBN Co to review its rollout priorities to industrial areas throughout the south east.
The 27 April report, which was based on a survey of 322 businesses that employ more than 6500 people, concluded that inadequate internet access was constraining innovation.
More than 70 per cent of respondents said their productivity would improve by up to 20 per cent if they were connected to high speed broadband.
More than 25 per cent would seriously consider relocating to access it and two thirds were unhappy with their current internet service.
Southern Melbourne RDA committee member Tony Lupton wants the report to change the narrative about NBN.
“It’s not just about downloading movies,” he said.
Fellow member Lyndon Joss said NBN Co had to achieve connection targets and that domestic connections were easier and faster to complete.
“Businesses are not getting the connection they need and they’re suffering,” he said.
Mr Joss said some businesses were spending thousands of dollars – sometimes more than $20,000 – to install their own improved internet connections.
“They can’t wait any more because they can’t get any information about when it’ll go in,” he said.
Wastech Engineering business systems co-ordinator David Elliott said the Hallam company spent almost $3000 a month on its internet connections.
“It still allows us to connect to the internet as quickly as we need to, but that’s only because we’re spending a fortune to do so,” he said.
Mr Elliott said the same access would cost only hundreds of dollars if the business had NBN access.
“It really does put a big dampener on businesses, especially in this area,” he said.
“Business should be the priority.
“We have a CAD (computer-aided design) drawing department.
“We’re constantly sending and receiving drawings between customers and suppliers and ourselves so that we get the products right first time.”
He said uploading one 400mb file could take two hours with a standard connection.
“We can upload that file in about 10 minutes,” he said.
“An hour later the whole job is drawn, signed off, instead of having to wait days between revisions.”
Regional Development Minister Jaala Pulford launched the report at printing business Nulab Professional Imaging in Braeside.
Nulab owner Michael Warshall, said it could take hours to download a single job.
“Our business totally depends on the internet,” he said.
“As technology improves, files get bigger. If we can’t get them in time, we can’t print them in time and we can’t send them in time.
“Customers are going elsewhere.
“This is making us less competitive, it’s holding us back.”
An NBN Co spokesperson said the company’s goal was to make fast broadband available to all Australian homes and businesses by 2020.
“Economic and physical resource constraints prevent us connecting everyone at the same time,” a statement said.
“As a result, we must build the network in a systematic, efficient and cost effective manner.
“We are working hard to do this as quickly as possible and at least cost to Australians.
“Ultimately, nobody will miss out.”
View the full report at www.rdv.vic.gov.au/smrda.
