Log in from paradise: Sun, surf and the NBN



This was published 5 years ago

Log in from paradise: Sun, surf and the NBN

By Sam Wills

The internet economy is populated by the workers of tomorrow: skilled coders, designers, engineers, data scientists and researchers. All in high value-added sectors, drawing incomes from every latitude.

This new economy is a big deal. By next year, the Boston Consulting Group expects the internet to account for 5.3 per cent of the G20's gross domestic product. With a growth rate of 8 per cent, it is outpacing every other sector in the developed world.

The great thing about working in the internet economy is that it doesn't matter where you live.

The great thing about working in the internet economy is that it doesn't matter where you live.Credit:Louise Kennerley

However, Australia has been logged out. Here, the internet is expected to contribute only 3.7 per cent to GDP in 2016. This is far below comparable countries like the US (5.4 per cent) and Britain (12.4 per cent).

We have plenty of room to improve.

This is the idea behind the national broadband network (NBN).

It was set up by the former Labor government to dramatically increase the scope, speed and reliability of the internet around the country. At present, 1.4 million households are connected, about 15 per cent of the total. By the end of 2017, most of NSW will be plugged in.

Most places will get "fibre to the node". Its peak wholesale speed is four times faster than a good connection in the cities. The rest will get a connection at least as good as we have in Sydney.

However, the remarkable thing is that the NBN will offer the same wholesale price for internet speeds all over the country. This means the internet connection in seaside spots like Anna Bay and rural gems like Morpeth will be competitive with places like Alexandria and Manly.

This could change the shape of Australia's regions.


The regions of NSW are being left behind. In October, the unemployment rate was 8.7 per cent in the Hunter Valley, 9 per cent in New England, and more than 10 per cent in the Tweed. To fix this, we need new ideas.

Using the NBN to tap into the internet economy and attract remote workers to the regions is one.


The other day I saw an ad for a residential quarter-acre block with water views for less than $150,000. No chance I'm telling you where.

This means that while digital workers earn their income from around the world, they will spend it wherever can attract them. The result is a large and sustained boost to local economies, which, otherwise, rely on cyclical holiday crowds.

Britain is capitalising on this as many digital workers leave London for bucolic rural villages: IP in idyllic pubs.

Imagine what would happen if they had the sun, beaches, food and wines of NSW.

All this comes from experience. At present, I live on the mid-north coast and work remotely from my job in Britain. In the past week, I've collaborated with colleagues in Boston, New York, Washington, London, Oxford and Accra, all through Skype. Once the NBN arrives, we'll have seamless HD video.

I think my co-workers love the arrangement, too. I've heard all about the northern winter, and they're up to date on Hunter Valley wines, fresh seafood and how good the surf is each morning.

What can we do to attract more digital workers to the regions? Employees should keep pushing to be allowed to work remotely. Employers should listen because it can increase the productivity, satisfaction and real wages of their workers. Local governments and business councils should also be proactive and start marketing their lifestyle possibilities to the rest of the world.

I hope you all have a fun, relaxing, sunny break. However, this year, on your trip up the coast, why not take a look at the property prices and think about staying with us a little longer?

Dr Sam Wills lives by Port Stephens and is a research fellow in economics at Oxford University.

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