TASMANIAN business must prepare itself for the brave new world of the high-speed information super-highway, now that work has commenced on the rollout of the $42 billion National Broadband Network (NBN).

While the initiative promises to herald in a new era of faster internet services and a major expansion of digital commerce, there are risks and potential pitfalls.

The State’s peak employer body, the Tasmanian Chamber of Commerce and Industry (TCCI), says many businesses are unprepared and are considering only the potential benefits while ignoring the possible downside.

TCCI managing director Andrew Scobie said while the NBN will give Tasmanian business much more rapid access to the world, it also opens up Tasmania to the best competition in the world.

Mr Scobie said the recent visit to Tasmania by one of the founders of the internet, Dr Larry Smarr, had served to highlight some of the issues surrounding Tasmania’s imminent leap onto the high-tech highway.

“It is undoubtedly great technology, but it also can be disruptive,” Mr Scobie said.

“If we are going to be open to the world in areas where demand is portable, then we must offer world-class products and services and we must be internationally competitive.

“For example, a consumer no longer has to go to a local bookstore to purchase a book. People can go on-line and buy the book where they get the best price and receive the best service.

“That can be down the street, in Sydney or Melbourne, or in New York, London, or even Beijing.”

Mr Scobie said the retail sector was particularly vulnerable and as well as being ready to take advantage of the dramatic increase in connectivity promised by the ‘fibre to the premises’ technology, businesses needed to ensure that they were prepared to meet the competitive challenges.

“For example, our research shows that only 18 percent of Tasmanian small businesses have a website.

“Small business is going to have to change rapidly if it is to take advantage of this major infrastructure development.”

Mr Scobie said there were other issues already being experienced in markets with high levels of broadband penetration, such as Japan and South Korea, which were often pointed to as examples of what Tasmania could become.

These included the rapid expansion in online gambling, internet pornography and the latest affliction, internet addiction where people were spending upwards of 12 hours a day online.

Mr Scobie said there was confusion about the benefits of high-speed broadband and insufficient debate about the potential economic and social pitfalls associated with the project.

“Without better education, Australia runs the risk of its citizens simply becoming consumers of broadband content rather than innovators and technology exporters.

“People will be locked in their homes playing online games or buying offshore and others will be making all the money overseas.

“We appear to be looking at the new technology through rose-coloured glasses but it is clear we need to be taking a more sophisticated view.

“The perception is that with the new high-speed broadband, we can export everything. But the reverse is also the case with the technology also opening up Tasmania to the best, and potentially the worst, in the world.

“Business must recognise this and be prepared for it,” Mr Scobie said.