Broadband Technologies in Australia 1993–98: Developing the Social Shaping of Technology Approach¹

1. Much of the research for this paper was undertaken while the author was also working in the School of Social Science and Planning at RMIT University.

Abstract

The development and deployment of technologies for delivering broadband services to homes in Australia are investigated using the ‘social shaping of technology’ (SST) approach. The focus is on the period from 1993 to 1998 when there were five main technological options for delivering residential broadband services: ‘hybrid’ fibre coaxial (HFC) cable; direct broadcast satellite (DBS); multipoint microwave distribution systems (MDS); ‘Integrated Services Digital Network’ (ISDN); and ‘Asymmetric Digital Subscriber Line’ (ADSL). The main broadband services planned for delivery to homes over this period were pay television and fast Internet access. A sequence of snapshots of sociotechnical relationships at critical times during the study period, termed ‘sociotechnological configurations’, is used to track the evolutionary pathway of the broadband technologies. The mapping technique assists in identifying key features and explaining the driving factors of the pathway, including why HFC cable emerged as the predominant technology, and two competing HFC cable networks were rolled out in capital cities at an additional cost of over $2 billion when a single network would have had ample capacity.

Keywords:

• social shaping of technology
• information and communication technologies
• broadband technologies
• sociotechnological configurations

Notes

1. Much of the research for this paper was undertaken while the author was also working in the School of Social Science and Planning at RMIT University.

2. S. Russell and R. Williams, ‘Social shaping of technology: frameworks, findings and implications for policy’, in K. H. Sorensen and R. Williams (eds), Shaping Technology, Guiding Policy: Concepts, Spaces and Tools, Edward Elgar, Cheltenham UK/Northampton, MA, 2002, ch. 3, pp. 37–133.

3. Bureau of Transport and Communication Economics (BTCE), Emerging Communications Services‐An Analytical Framework, Paper 1, Communications Futures Project, Australian Government Publishing Service, Canberra, 1994a; Bureau of Transport and Communication Economics (BTCE), Delivery Technologies in the New Communications World, Paper 2, Communications Futures Project, Australian Government Publishing Service, Canberra, 1994b, p. 20; G. Abe, Residential Broadband, Macmillan Technical Publishing, Indianapolis, 1997.

4. D. MacKenzie and J. Wajcman (eds), The Social Shaping of Technology: or How the Refrigerator Got its Hum, Open University Press, Buckingham, 1985; D. MacKenzie and J. Wajcman (eds), The Social Shaping of Technology, 2nd edition, Open University Press, Buckingham/Philadelphia, 1999; W. E. Bijker, Of Bicycles, Bakelites, and Bulbs: Toward a Theory of Sociotechnical Change, MIT Press, Cambridge, MA, 1997; R. Williams and D. Edge, ‘The social shaping of technology’, Research Policy, 25, 1996, pp. 865–99; Russell and Williams, op. cit., pp. 37–133.

5. T. J. Pinch and W. E. Bijker, ‘The social construction of facts and artefacts: or how the sociology of science and the sociology of technology might benefit each other’, Social Studies of Science, 14, 1984, pp. 399–444.

6. W. E. Bijker, ‘The social construction of Bakelite: towards a theory of invention’, in W. E. Bijker, T. P. Hughes and T. J. Pinch (eds), The Social Construction of Technological Systems: New Directions in the Sociology and History of Technology, MIT Press, Cambridge, MA, 1987; W. E. Bijker, ‘The social construction of fluorescent lighting, or how an artifact was invented in its diffusion stage’, in W. E. Bijker and J. Law (eds), Shaping Technology/Building Society: Studies in Sociotechnical Change, MIT Press, Cambridge, MA, 1992, ch. 3, pp. 75–102; W. E. Bijker, ‘Do not despair: there is life after constructivism’, Science, Technology and Human Value, 18, 1, 1993, pp. 113–38.

7. Bijker and Law (eds), op. cit.

8. Bijker et al. (eds), op. cit. There has in any case been considerable convergence between the various SST strands over the past decade [K. H. Sorensen, ‘Social shaping on the move? On the policy relevance of the social shaping of technology perspective’, in Sorensen and Williams (eds), op. cit., ch. 2, pp. 19–36], and extension of SST analysis from the research, development and design stages ‘downstream’ to deployment and usage (Russell and Williams, op. cit., p. 75), as I do in this case study.

9. F. W. Geels, ‘Towards sociotechnical scenarios and reflexive anticipation: using patterns and regularities in technology dynamics’, in Sorensen and Williams (eds), op. cit., ch. 13, p. 379.

10. Bijker, 1997, op. cit., pp. 86, 191.

11. J. Andrews, Residential Broadband Technologies in Australia 1993–1998: Applying and Developing the Social Shaping of Technology Approach, PhD thesis, School of Social Science and Planning, RMIT University, Melbourne, 2002.

12. Williams and Edge, op. cit., pp. 880–9.

13. R. Williams, ‘The social shaping of information and communication technologies’, in H. Kubicek, W. H. Dutton and R. Williams (eds), The Social Shaping of Information Superhighways: European and American Roads to the Information Superhighway, Campus Verlag, Frankfurt/New York; St Martin's Press, New York, 1997, pp. 299–338.

14. R. Williams, R. Slack and J. Stewart, Social Learning in Multimedia, Final Report to European Commission, DGXII TSER, Research Centre for Social Sciences, University of Edinburgh, Edinburgh, 2000.

15. See Williams, op. cit.

16. Kubicek et al. (eds), op. cit., pp. 9–44.

17. R. Silverstone and E. Hirsch (eds), Consuming Technologies: Media and Information in Domestic Spaces, Routledge, London and New York, 1992, pp. 15–31.

18. A. Berg and M. Aune (eds), Domestic Technology and EverydayLife‐Mutual Shaping Processes, COST A4 Vol. 1, Social Sciences, European Commission Directorate‐General Sciences Research and Development, Office for Official Publications of the European Communities, Luxembourg, 1994.

19. A. Cawson, L. Haddon and I. Miles, The Shape of Things to Consume: Delivering Information Technology into the Home, Avebury, Aldershot, 1995.

20. S. Singh, A. Bow and K. Wale, ‘The use of information and communication technologies in the home’, Centre for International Research on Information and Communication Technologies, RMIT University, Policy Research Paper No. 40, CIRCIT, Melbourne, 1996, p. 1.

21. S. Singh, ‘Studying the user: a matter of perspective’, Media International Australia, No. 98, February 2001, p. 125.

22. S. Collinson, ‘Managing product innovation at Sony: the development of the Data Discman’, Technology Analysis and Strategic Management, 5, 3, 1993, pp. 285–306.

23. Cawson et al., op. cit., p. 269.

24. Russell and Williams, op. cit., p. 54.

25. Andrews, op. cit.

26. I use the adjective ‘sociotechnological’ rather than ‘sociotechnical’ because I am dealing with specific technological options or technologies, rather than general technical knowhow or techniques. The term ‘sociotechnical system’ is usually used to describe a set or network of interconnected technical and social components designed to perform a specified task, for example, the energy supply system or telephone system. A ‘sociotechnological configuration’, by contrast, is a representation of the various alternative technological options available to perform a given task together with the social groups interested in each option. My usage of the term ‘configuration’ is broadly consistent with that of Bijker (1997, op. cit., p. 276), though I define it more specifically in the context of the mapping process. A sociotechnological configuration, as defined here, must, however, be distinguished from the notion of ‘configurational technology’ used by Clark et al. (J. Clark, I. McLoughlin, H. Rose and R. King, The Process of Technological Change: New Technology and Social Choice in the Workplace, Cambridge University Press, Cambridge, 1988), Fleck (J. Fleck, ‘The development of information integration: Beyond CIM?’, Edinburgh PICT Working Paper No. 9, Edinburgh University, Edinburgh, 1988), and Williams (op. cit., pp. 330–2) to describe a complex array or system comprised of standard and customised technical elements to meet the specific requirements of a particular user. Yet a common aspect of configurational technologies and sociotechnological configurations is that in both cases ‘configuration’ is used to connote a complex arrangement of social and technical elements, and their interrelationships.

27. Bijker, 1997, op. cit.

28. A key difference is that Bijker's (1997, op. cit., pp. 122–7) concept of ‘technological frame’—through which a relevant social group attributes meanings to and makes use of a technology to further its interests—is not represented explicitly on the maps drawn. However, this concept does enter my scheme when I describe in words the relationships between groups and technological options. Conceptually, the mapping approach I propose here has some common features with the analysis of ‘policy sectors’, networks and communities developed in the general policy field: see J. K. Benson, ‘A framework of policy analysis’, in D. L. Rogers, D. A. Whetten and Associates (eds), Interorganizational Coordination: Theory, Research and Implementation, Iowa State University Press, Ames, IA, 1982, pp. 137–76; T. Dalton, M. Draper, W. Weeks and J. Wiseman, Making Social Policy in Australia, Allen and Unwin, 1996, pp. 57–77. The mapping scheme also has some similarities with Law and Callon's representation of local and global networks [J. Law and M. Callon, ‘The life and death of an aircraft: a network analysis of technical change’, in Bijker and Law (eds), op. cit., pp. 21–52]; and the ‘techno‐economic’ networks of M. Callon, P. Larédo and V. Rabeharisoa, ‘The management and evaluation of technological programs and the dynamics of techno‐economic networks: the case of the AFME’, Research Policy, 21, 1992, pp. 215–36. More recently A. Rip and J. Schot [‘Identifying loci for influencing the dynamics of technological development’, in Sorensen and Williams (eds), op. cit., ch. 5, pp. 159–76] have proposed a mapping tool for the innovation process in firms. In particular, it should be noted that the mapping technique used in the present case study is applicable only to situations where one or more defined social groups have an interest in a technology. It does not encompass intra‐group dynamics and the roles played by individual actors. In addition, discrete technological options must be definable, so that they need to have achieved a sufficient level of stabilisation for this definition to be possible. The technological options must also be analytically separable from the groups that support these options. See Andrews, op. cit. for a more detailed discussion of the relationship of the mapping technique to earlier work in this area, and for a critical appraisal of its areas of applicability and limitations.

29. Russell and Williams, op. cit., p. 75.

30. A. Gore (Senator), ‘Bringing information to the world: the global information infrastructure’, speech by the Vice‐President of the United States to The Superhighway Summit, Royce Hall, UCLA, Los Angeles, CA. Available at: www.analitica.com/bitblioteca/al_gore/ superhighway.asp, 11 January 1994.

31. Strictly, to be included here as a broadband option, ISDN in its ‘primary rate’ form must be employed, which requires the equivalent of two conventional telephone lines in parallel.

32. See Bijker (1997, op. cit., pp. 122–7) for a detailed definition of the concept of ‘technological frame’ and my discussion in Note 28.

33. B. Gates, The Road Ahead, Viking, New York, 1995; K. Auletta, The Highwaymen: Warriors of the Information Superhighway, ch. 14: ‘The pirate: Rupert Murdoch’, Harcourt, Brace and Co., San Diego, CA, 1st paperback edition, 1998, pp. 258–89 (first published in 1997 by Random House, New York); N. Negroponte, Being Digital, Hodder & Stoughton, Rydalmere, NSW, 1995.

34. Telstra, Annual Report 1994, Telstra, Melbourne, 1994; Bureau of Transport and Communication Economics (BTCE), Towards the Networked Home: The Future Evolution of Residential Communications Networks in Australia, Paper 6, Communications Futures Project, Australian Government Publishing Service, Canberra, 1994f, p. 93.

35. There are in fact limitations to the homes that ADSL can serve, based on a maximum distance from the nearest exchange.

36. J. Murphy, formerly Telstra's Manager‐Business Analysis, personal interview, Melbourne, 30 November 2001.

37. M. Westfield, The Gatekeepers: The Global Media Battle to Control Australia's Pay TV, Pluto Press, Sydney, 2000, p. 60.

38. R. L. Collins (Senator The Hon.), Senate Hansard, Broadcasting Services Bill 1992/Broadcasting Services (Transitional Provisions And Consequential Amendments) Bill 1992: Second Reading, 4 June 1992, p. 3599.

39. T. Barr, newmedia.com.au: The Changing Face of Australia's Media and Communications, Allen and Unwin, Sydney, 2000, pp. 80–2; T. Barr, ‘Telecommunications and the new economy’, in S. Cunningham and G. Turner (eds), The Media and Communications in Australia, Allen and Unwin, Sydney, 2002, p. 123; L. Palmer, ‘Regulating technology’, in L. Green and R. Guinery (eds), Framing Technology: Society, Choice and Change, Allen and Unwin, Sydney, 1994, pp. 81–2; Westfield, op. cit., p. 51.

40. L. Fell, ‘David Beddall‐balancing converging interests’, Australian Communications, November 1993, p. 64.

41. ‘Telecom to build $710 million CATV network’, Australian Communications, May 1994, ‘Update’, p. 18.

42. Ibid.

43. S. Fist, ‘Optus opens up’, Australian Communications, June 1994, p. 24.

44. A. Bailey, ‘The competition to sustain Optus beyond 1997’, in interview with Liz Fell, Australian Communications, May 1995, p. 67.

45. S. Lewis, ‘Telecom dials up $2bn profit’, Australian Financial Review, 12 September 1994.

46. A. Deans, ‘Australis mines blue sky’, Australian Financial Review, 12 January 1994.

47. T. Burton, ‘Battle for TV programming begins’, Australian Financial Review, 9 May 1994.

48. M. Furness and T. Burton, ‘Telecom, News Corp get pay‐TV clearance’, Australian Financial Review, 11 November 1994.

49. Broadband Services Expert Group (BSEG), Networking Australia's Future: The Interim Report of the Broadband Services Expert Group, Australian Government Publishing Service, Canberra, July 1994.

50. Bureau of Transport and Communication Economics (BTCE), New Forms and New Media: Commercial and Cultural Policy Implications, Paper 3, Communications Futures Project, Australian Government Publishing Service, Canberra, 1994c; Bureau of Transport and Communication Economics (BTCE), Networked Communications Services to the Home: Future Demand Scenarios, Paper 4, Communications Futures Project, Australian Government Publishing Service, Canberra, 1994d; Bureau of Transport and Communication Economics (BTCE), Costing New Residential Services, Paper 5, Communications Futures Project, Australian Government Publishing Service, Canberra, 1994e; Bureau of Transport and Communication Economics, 1994f, op. cit.

51. D. Luck, General Manager, Research Statistics and Technology, Department of Communications, Information Technology and the Arts, Canberra, Study Leader, BTCE's Communications Futures Project (1993–95), personal interview, Canberra, 28 September 2001.

52. M. Lee (MHR), ‘Decision on access arrangements for the two HFC networks’, Minister for Communications and the Arts, Press Release, Canberra, 24 November 1994, p. 2.

53. Broadband Services Expert Group (BSEG), Networking Australia's Future: The Final Report of the Broadband Services Expert Group December 1994, Australian Government Publishing Service, Canberra, 1995.

54. Murphy, op. cit.

55. J. Hewett, ‘Tearaway Australis: the upstart racing for its life’, Australian Financial Review, 22 June 1994.

56. P. Syvret, ‘TV deal hits media’, Australian Financial Review, 22 September 1994.

57. S. Lewis, ‘Hitch in getting good films delays pay‐TV groups’, Australian Financial Review, 7 September 1994.

58. Telstra, Annual Report 1995, Telstra, Melbourne, 1995.

59. R. Whittle, ‘The great Australian cable race’, Australian Communications, December–January 1995–96, pp. 59–74.

60. Bureau of Transport and Communication Economics (BTCE), Communications Futures Project: Final Report, Australian Government Publishing Service, Canberra, 1995, p. 76.

61. Bijker, 1997, op. cit., pp. 76–7.

62. R. Whittle, ‘The Optus vision: telephony, internet and video’, Australian Communications, August 1996.

63. P. Syvret, ‘Pay TV: Murdoch 1, Packer 0’, Australian Financial Review, 10 March 1995.

64. R. Jones, Commissioner, Australian Competition and Consumer Commission, personal interview, Melbourne, 20 November 2001.

65. Westfield, op. cit., p. 2.

66. F. Burke and S. Lewis, ‘Australis out of the picture’, Australian Financial Review, 11 November 1997.

67. B. Levy, ‘Don't get too set on those top boxes’, Australian Communications, 18 June 1995.

68. I. Ries, ‘Pay‐TV's ménage a trios forms’, Australian Financial Review, 10 March 1995.

69. Bureau of Transport and Communication Economics (BTCE), 1995, op. cit.

70. D. Hudson, Rewired, Macmillan Technical Publishing, Indianapolis, 1997, p. 44.

71. Westfield, op. cit., p. 1.

72. M. Furness, ‘It's on! The big boys do battle’, Australian Financial Review, 8 January 1996.

73. I. Ries, ‘Easing the pay‐TV agony’, Australian Financial Review, 13 March 1997.

74. M. Furness and S. Lewis, ‘Packer, Murdoch smoke the peace pipe’, Australian Financial Review, 16 January 1997.

75. S. Lewis and S. Anderson, ‘News, Telstra to move quickly on Australis deal’, Australian Financial Review, 23 June 1997.

76. F. Burke, ‘Australis Media into the hands of receivers’, Australian Financial Review, 6 May 1998a; F. Burke, ‘Plan signals Australis's end’, Australian Financial Review, 9 May 1998b.

77. Cable and Wireless Optus, Prospectus, issued to Australian Stock Exchange, Cable and Wireless Optus, Sydney, available at: www3.optus.com.au/codocs/prospectus.pdf, 29 September 1998.

78. Figures on households with Internet access from ABS, Use of the Internet by Householders, cat. no. 8147; ABS, Household Use of Information Technology, cat. no. 8128.0 also used. Figures on households with pay TV from Joseph di Gregorio, ABS, personal communication, February 1999.

79. Bureau of Transport and Communication Economics (BTCE), 1995, op. cit., p. 69.

80. Furness and Burton, op. cit.

81. Bureau of Transport and Communication Economics (BTCE), 1995, op. cit., p. 76.

82. Russell and Williams, op. cit., p. 43.

83. S. Domberger, ‘Switching on to group vs group’, Australian Financial Review, 25 November 1994.

84. Cawson et al., op. cit., p. 269.

85. A. Lockwood, Managing Director, Business Strategy & Commercial Operations, Telstra, personal interview, Melbourne, 10 September 2001.