Effective participation in the digital economy will deliver positive benefits for Australian families and communities in the form of improved access to business and job opportunities, health, education and government services. The ability for people to share common interests will become easier through the rollout of high speed broadband to all Australian homes, businesses and community centres. Allen Consulting has stated that:
‘households benefit from access to new online services and information and from the connection to the social community’.
Allen Consulting estimates that if the number of Australian households connected to the internet increased by 10 per centage points, these households would gain $2.4 billion a year in current prices (in terms of the change in the value of consumption that they are expected to obtain) through timesaving activities, including:
- teleworking, online shopping, remote work and study opportunities
- information gathering and accessing services
- price/product discovery
- education and knowledge
- access to social networking
- media, entertainment and professional services
- substitution of physical services to services delivered electronically
- inclusion and engagement in the online community.
In addition to benefits to households, a 10 per cent point increase in Australians using the internet is estimated to produce an increase of 0.44 per cent to Australia’s Gross Domestic Product (GDP).
There are also indirect benefits to other sectors as a result of increased household connectivity:
- for businesses, the reduction in the costs of customer access and client servicing
- for government, improved public sector efficiencies and the returns from greater economic activity
- for community organisations, increased engagement/participation with community groups.
Online engagement can have social and personal benefits for Australian households, through an increased connection with an online social community. The term ‘cognitive surplus’ was popularised by the US writer, teacher and consultant Clay Shirky to describe – [PDF - 492kb] the creativity and knowledge that the internet makes available to the public. The internet and mobile networks are allowing consumers to create, connect and engage with people online on unprecedented levels. This can reduce feelings of isolation and enhance family relationships through greater interaction with extended family and the wider national and global community.
Enhanced digital engagement can be of particular value to families and/or family members who are geographically isolated or who live away from home. There is also evidence in the US – [PDF - 5.6MB] that internet use bolsters community vitality in rural America through the promotion of civic engagement and community participation.
Download the Allen Consulting Report - Quantifying the possible economic gains of getting more Australian households online [PDF - 1.2MB]
