Updated May 29, 2018 11:37:06 Australian financial services firm Gartners has said its $10 million investment in Australian broadband could not sustain it through 2020, as it looks to shift focus to the rest of the world.
The Australian Financial Services Group (AFSG), which manages more than $1 trillion in assets, said it would not be able to maintain broadband services in Australia for another five years unless a “new and disruptive” approach to the market was adopted.
“We need to shift the Australian business away from a legacy, legacy infrastructure model and towards a new and disruptive, cost-efficient, low-cost, networked business model,” said AFSG chief executive Paul O’Donnell in a statement.
“The cost of doing this is significant and it will require some significant investment.”
AFSG said its focus would be to “enhance and expand” the existing infrastructure and to “create a new business model based on data, smart devices, apps and networks”.
The company will be investing $100 million in broadband infrastructure in the next three years.
AFSGs investment in the broadband industry in Australia in 2020 will be about $8 billion, Mr O’Connell said.
“There is a fundamental disconnect in the Australian market right now between people wanting to have a broadband network and people wanting access to it,” he said.