Technology Plus Government Equals A Costly Mistake!

Technology Plus Government Equals A Costly Mistake!

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The economic roller coaster was travelling at high speed this week with the “shock market” at a three year high share price surge adds $42b to market’s value. For the moment, it would appear (based on these results) that the much awaited consumer ‘ring of confidence’ is again smiling on these markets. Despite a focus on financial markets it was refreshing to note that Sydney’s still as safe as houses where data has revealed that the toughest residential market in Australia is still the best performing city over the past year. Compared to the rest of the capital cities, RP Data Rismark reported that property prices in Sydney actually increased 0.3 per cent in the year ending August.

It should be emphasised that most Australians read more into bad news which clearly overshadows those ‘good news weeks’. The 2010 General Social Survey found that 78 per cent of Australians were satisfied, 43 per cent reported being pleased or delighted with their lives, while 34 per cent gave a more moderate appraisal, saying they were ‘mostly satisfied’. Based on that assumption, we can then conclude that most Aussies are satisfied with their lives.

Alan Kohler was succinct when he wrote on Business SpectatorFlagging down a recession “Markets are falling now because the US, and probably the world, is tipping into recession once again.” Why? “That’s because a recession “isn’t just a statistical event. It’s a vicious cycle that must run its course.” Australia has caught a cold from what’s happening in the US and Europe – not pneumonia! Although we should be constantly reminded that we live in a society based on excuses.

BUY PRINT

To be expected RBA extends rate pause although more interesting was the Statement by Glenn Stevens, Governor: Monetary Policy decision which signals Reserve puts rate cut on the menu. I doubt very much that this will happen when they next meet on Melbourne Cup day, given a clear indication that for the moment, they are keeping their powder dry. Our banks remain strong and the Australian Prudential Regulation Authority (APRA) showed that $27 billion in deposits were channelled into our banking system in August. Cash deposits swell amid global worries and the entire system saw a two per cent lift in deposits to $1.42 trillion.

One should never let the facts get in the way of a good story – too many people and not enough houses. Despite a collapse in Sydney’s housing affordability in 2010, due to a 20 per cent increase in house prices in eighteen months and seven increases in interest rates, Sydney is leading the nation’s housing recovery as demand pressures continue to intensify. A crash in property prices? Don’t bet on it so it is now time for Sydney to shed its housing funk. At this juncture, I would add that our Mosman market remains healthy, wealthy and buyers not wise as it will be going up not down. Unlike the US – when you buy a house you don’t get another one free!

We read with great sadness yesterday, about the passing of Steve Jobs: the man who changed the way we live. I’m also a tragic admirer, so it was understandable that mourners flood websites, social media with tributes to Steve Jobs. His death provoked the biggest online reaction of any in recent history with Twitter figures expected to come in at 10,000 tweets per second. To put this into context, the Japan earthquake and tsunami in March recorded 5,530 tweets per second and the British royal wedding recorded 3,966 tweets per second. I read two notable comments about Steve Jobs – the best Twitter comment “RIP Steve Jobs. You left your mark on our desks, on our ears and in our hands.” And “Jobs concerned himself with making computers work the way people expected them to rather than making people learn how the computer wanted them to work.” Which takes me to why the Gillard governments NBN roll – out will be a dismal failure.

Source: Australian Bureau of Statistics

The Australian Bureau of Statistics released the latest June 2011 internet activity revealing:

  • At the end of June 2011, there were 10.9 million internet subscribers in Australia (excluding internet connections through mobile handsets). This represents annual growth of 14.8% and an increase of 4.4% since the end of December 2010.
  • The phasing out of dial – up continued with 95% of internet connections being broadband. Australians continued to access increasingly faster download speeds, with 87% of access connections offering a download speed of 1.5 Mbps or greater.
  • Mobile wireless internet (excluding mobile handset) connections (44%) now exceed Digital Subscriber Line (DSL) connections (41%) in Australia. Mobile wireless (excluding mobile handset connections) was the fastest growing internet access technology in actual numbers, increasing from 4.2 million in December 2010 to 4.8 million in June 2011.

So Julia Gillard wants to persist with underground fibre – optic cable installations? I will be writing an article on Property Observer to be published next Monday about this taxpayer catastrophe which is fast looking like Australia’s all time greatest waste at $50 billion plus.

Mosman house vendors are ever so gradually testing the market again with the number of new properties (houses) entering the market this week, increasing by 8.5 per cent.

MOSMAN – 2088

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• Number of houses on the market last week – 106
• Number of houses on the market this week – 115
• Number of apartments on the market last week – 83
• Number of apartments on the market this week – 78

CREMORNE – 2090

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• Number of houses on the market last week – 15
• Number of houses on the market this week – 16
• Number of apartments on the market last week – 36
• Number of apartments on the market this week – 34

NEUTRAL BAY – 2089

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• Number of houses on the market last week – 16
• Number of houses on the market this week – 15
• Number of apartments on the market last week – 76
• Number of apartments on the market this week – 80

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate Click Here

You can put your house on the NBN being an abysmal failure – so it is understandable that the Government will be the most surprised. Telstra’s new 4G network is boasting internet speeds 25x faster than the 3G so the NBN roll –out is fast looking like Australia’s greatest ever tax payer debacle.

Cheers ^__^

9 Responses to “Technology Plus Government Equals A Costly Mistake!”

  • Hotly Spiced says:

    Gillard clocking up another catastrophe with further waste of tax payer’s money??? We shouldn’t be so surprised.

  • Ann says:

    Yes, demand will outstrip supply of housing in Sydney, so cannot see the slump or sustained slump in Sydney.

  • After seeing the graph – “proportion of subscribers by connection type” is it not glaringly obvious that mobile and fixed wireless is growing exponentially and DSL has not shown much growth in the last 5 years in comparison??

    Do our leaders have their heads in the sand?…Somebody PLEASE EXPLAIN. I welcome some more comment on this one from authorities on the subject.

    P.S. Positive property market stat’s.. also glaringly obvious that more availability of homes for sale on Lower North Shore is needed to stimulate activity. More sellers = more buyers!

  • It has been said right from the very beginning that consumers much prefer mobile and fixed wireless – it is the fastest growing internet access technology in Australia. Technology manufacturers have identified this as the strongest growth demographic market moving forward.

    If you look at the ABS graph if this trending continues in less than six years it will all be fixed wireless and mobile.

  • Sharon says:

    Oh…another one….yawn….

  • Gordon says:

    Andrew (and Robert), there’s an old saying about statistics, and it applies to communications as well. . .

    Wireless connections are increasing rapidly because of the uptake of mobile gear – iPhones, iWhatever. Most of these are relatively low data-volume convenience aids which supplement, rather than replace, fixed line services.

    Wireless has a limited spectrum which means it is incapable of carrying the full traffic volume of a national network now, let alone in twenty or forty years time.

    So it will constitute a valuable adjunct to the fibreoptic NBN, but can never replace it. In fact wireless is running into congestion problems in high density areas already, and this is likely to continue until NBN is generally available to take the load.

  • Interesting points Gordon – the problem that I see is that the NBN requires a 70% take up rate to make it financially viable – and that’s not forgetting that the NBN already has stiff competition. There is no way it will reach 70% given the consumers appetite for wireless. Yes – we do need fixed line services however, the NBN in my opinion will not be the answer.

    Interesting that Telstra see wireless as the future which explains why they are pouring millions of dollars into their just released 4G.

  • Snow White says:

    Cuba? In Todays paper

    AUSTRALIA’s National Broadband Network has been labelled an example of “extreme government intervention” in a new analysis of global broadband trends seized upon by the federal opposition.

    The Economist Intelligence Unit report updates compares broadband models across the world, finding Australia is spending more on its network than any other country and excluding the private sector to the greatest extent.

    Based on updated currency calculations, the federal government’s $27.5 billion stake in the NBN is worth $US3338 per household, compared to the $US54.50 per household investment in the UK’s broadband plan and $US574 per household for South Korea.

    Opposition communications Malcolm Turnbull said Australia was tackling the NBN like a communist state.

    “This is the telecommunications version of Cuba,” Mr Turnbull said.

    He said those who believed the NBN was the best way of building a broadband network had to believe every other country was doing it wrong.

    Start of sidebar. Skip to end of sidebar.

    End of sidebar. Return to start of sidebar.

    “You have to believe that (Communications Minister) Stephen Conroy is the only person in the world that knows anything about building a broadband network,” Mr Turnbull said.

    The Economist Intelligence Unit report states: “The outstanding example of extreme government intervention is Australia, where authorities have taken control of the national incumbent’s existing fixed network and plan to fund, develop and operate a national fibre-to-the-home network, providing wholesale services on an open-access basis, that is expected to cost the taxpayer some $A27 billion.”

  • Legal Eagle says:

    The copyright lawyers will be having a look at Snow White’s unattributed cut-and-paste theft job.

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