Telecoms & Broadband Business Newsletter - May 2015

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Last updated: 20 May 2015 Update History

Report Status: Archived

Report Pages: 22

Analyst: Paul Budde

Publication Overview

Published since 1983, Australia’s first telecommunications and new media newsletter covers national and international business strategies and government policies in relation to fixed and wireless broadband and other smart infrastructure, the digital economy, digital and mobile media, smart grids, e-health and e-education.

Executive Summary

Editorial:- How to better balance the Federal Budget?

It is frustrating to read documents such as the Intergenerational Report and the various Budget Papers and proposals from governments on some of the most challenging issues that we, as societies, are facing.

While almost always ‘reforms’ are described as being critical in facing these challenges, governments are seldom taking any decisive action in that direction – very often simply because the vested interests in the affected organisations have very powerful lobbies in place aimed at preserving the status quo for as long as possible.

So the easiest way out for governments is simply to say to its citizens we can’t afford these services any more so you simply have to pay more and/or we are reducing the number of services to you. The current Australian government did exactly that, but it has been heartening to see that the people themselves didn’t like it, and they have been able to stop proposals that would have constituted a serious setback to the hard-won lifestyle that we have been able to create over the last 60 years.

However this rejection doesn’t solve the problem. The current costs of delivering these healthcare, environmental, education and social services are simply too high.

At the same time, however, we have a good understanding what the digital economy is all about. The companies leading this economy have completely different business models in place from those organisations who traditionally have been providing these products and services. In that process these reform leaders have often been able to take 60%, and even 80%, out of the costs of the traditional models. With such examples in place it would be worthwhile for governments to also start looking at different business models for the sectors they claim they want to reform.

The following example is a classic in the way it shows how archaic and costly those old models are. It is not difficult to see that such archaic systems are simply unsustainable; and if governments are serious about reform they should start addressing these issues. Implementing those models will drive the costs down, which they so desperately want in their Budgets, so that would be a win-win – the government saves the money and the people can maintain their lifestyle benefits.

It is frustrating that there is not even a hint from governments about looking into these new models, or any discussion on how new tools and digital economy practices can be used to balance their Budgets.

Here is the example from the healthcare system, the one that costs us the most and is most in need of drastic reform …..

Imagine if financial transactions were different every time you went to the bank and rules differed from state to state, program to program, and agency to agency. For consumers, the complexity would make no sense. No one would want a system in which, for example, it was possible to withdraw money remotely only in certain states without seeing a teller face to face first or to transfer funds remotely only upon authorisation by particular programs.

For healthcare (e-health), the state of play in 2015 resembles this hypothetical banking scenario. As telecommunications technologies continue to transform multiple industries medical interventions using electronic devices and interconnectivity are creatively disrupting the practice of medicine, presenting a need to rethink many of the traditional rules that were developed for in-person interactions, procedures, policies, and payment. But because medicine is largely governed by state rules, the changes are creating a patchwork of rules and standards that are difficult for both practitioners and consumers to follow. (With thanks to the US Telemedicine Today magazine).

It clearly is a missed opportunity for governments to look more seriously into these reform opportunities – while they fail to address this issue the market is not sitting still.

New companies and new entrepreneurs, often from outside the traditional industry, know that customers/patients are frustrated by the system. The ageing baby-boomers in particular want a much better system, and they often have the money to buy these new products and services (which are seldom covered by healthcare insurance). The medical wearables market is a case in point. This market is set to grow to $40 billion over the next few years, basically bypassing the traditional healthcare providers. Many people are forcing their practitioners to take the data from these devices into account in their services to them. Most practitioners are, for the abovementioned reasons, totally unable to participate in this development in any effective way, simply because the system they work in is so archaic.

So, while guidelines don’t exist or are far from settled, the body of evidence on the efficacy, safety and cost-effectiveness of virtual care is growing.

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