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How the virtual world is reshaping society
August 2003
In the post-9/11 world, US security concerns are now speeding the introduction of a new breed of smart card transit tickets that identify individual passengers. Similar security concerns are prompting new American anxiety about the future safety of freight transport - especially if, as expected, freight is managed though online control systems. In Asia, the SARS outbreak has breathed new life into video conferencing as companies look to minimising risks by adopting alternatives to business travel. In Europe the Chinese are now negotiating to assist the development of what will become one of the world's largest international transport and planning infrastructure projects - the creation of the Galileo satellite navigation system. While none of these events are directly connected, they show that transport-orientated information technology is set to rapidly change future mobility and the way communities are planned. In the survey below, we highlight some of these trends and Australia's progress in adapting to the new, virtual environment.
Australia still has a long way to go before the Internet and online services deliver all their promised advantages. There are huge potentials still to be realised for cost savings, changes to travel demand and greater social connectedness. But both at the business and consumer level there are mixed signs about growth.
For example, the Australian Bureau of Statistics has no doubt that banking would be more efficient and travel demand less - if more people did their banking and paid their bills via the Internet. But according to the latest ABS statistics, (2000 figures) only 9% of Australian adults actually use the Net for financial transactions.
Nonetheless, there can be little doubt that the "virtual world" is having a profound effect on the way society is shaping itself and the ways in which people communicate. Today about one third of Australian households (2.3 million) are able to access the Net from their home and a whole new generation is being brought up in an environment where text messaging is the norm.
The growth of home businesses can be largely attributed to computerisation and the Internet and CSIRO and others have pointed to an expectant upsurge in urban road transport as online shopping and online business-to-business purchasing grows. But while there is growth, there are also indications that the uptake in Internet usage may be reaching a peak. In fact in the US it is now being suggested that the concept of universal Internet access "may not be feasible in the near future".
At the individual level, the problem is not simply a matter of cost. The American research has identified a significant group of people who pride themselves by the fact that they are not connected to the Net.
In Australia the ABS has started to voice concern about the social impact to a modern society if near-universal usage is not achieved. "The increasing prevalence of computers and the Internet means that people who are not able to use or access these may have restricted access to information and services, skills development, and special offers and savings," says the ABS report. "This may adversely affect educational outcomes, employment prospects and other aspects of wellbeing."
At the business level too, ABS is also reporting a slow down in Internet adoption. In the 12 months to June 2002, the number of businesses that had access to the Net rose by just 3% to 72%. Nonetheless, there is also a clear indication that business done via the Net is increasing. In the same 12 months the estimated Internet income earned by Australian companies rose by $1.9 billion to $11.3 billion. More recent figures show that the number of Australian subscribers with permanent, high-speed connections to the Net reached 350,000 by September 2002 - a 47% increase in six months. High-speed, broadband subscribers represent 8% of the total Australian subscribers.
