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Thursday 8 May 2014

08 May 2014: Fighting among leaders, NBN versus water, and value of tech stocks

Fighting among leaders


Two stories.  In one, NSW police ore reviewing footage of a fight between billionaire gaming mogul James Packer and Nine Entertainment Co boss David Gyngeli.

In another, Clive Palmer is suing Qld Premier Campbell Newman for $1.1 million for defamation in aggravated damages.

How do we expect the next generation to behave if our commercial and political leaders cannot learn how to get along? Whether we throw physical or legal punches, I have to ask, how is it that we would choose to live and resolve our differences?  

Extra cost for NBN


The NBN is expected to cost between an additional $900 million and $1.4 billion to roll out to rural areas. This is based on a Boston Consulting Group report that found an additional 620,000 homes and businesses which will need faster broadband in the bush by 2021, up from the original 230,000 estimated.  This is included in the $41 billion budget. Ericsonn's $1.1 billion contract to build a wireless network is running about 12 months late.

Increase in scope, schedule and budget should not be a surprise, given that over 70% of all projects go over in one of the three variables. I understand the challenges, and the need, to bring connectivity to such a remote landscape. And yet I am challenged by the fact that even as we struggle with getting wireless to remote regions, other countries struggle in a similar way with getting clean water. If I were to think as a global citizen with a choice of where to spend $41 billion, would I choose wireless or water? And if I choose wireless, would I then have a responsibility to use that wireless for a common good? Even as I question, I type this using a 4G connection card on the train on my way home. Am I doing the most with what I have?

Twitter stocks plunge

Twitter stocks fell 18%, but still more expensive than Facebook or LinkedIn. Twitter stocks gained 23% from the IPO in November 2013. Market value is at $US19.2 billion. Monthly user activity in Q1 reached 255 million, 25% year on year growth compared to 30% in previous year.

I appreciate Twitter is an instant news source, but the majority of the traffic is noise. What would it look like if we values products based on the value they returned to humanity? I suppose there is a discussion about how you measure that value, but for the majority, when I consider the value of our time here on Earth and the contribution to that value from reading my Twitter feed... it does not make a compelling case.

Climate change affecting US


The Third National Climate Assessment, a 4- year 850 page report developed by 300 scientists and technical experts, outlines the impact climate change is having across eight geographical areas in the US and on key sectors in the economy including agriculture,health, energy, water, and transport. US carbon dioxide levels fell in 2012 to their lowest levels since 1994 due to a surge in natural gas use, yet current efforts to address climate change are insufficient.

I saw another link about a big sheet getting ready to fall off the Antarctic which is expected to cause escalating increases in coastal sea levels.  Parts of humanity are making some changes, but for the most parts I expect we will only change when it is on our front door.  

Culture with financial benefits

Former Commonwealth Bank Chief and Future Fund chairman David Murray emphasised the importance of strong corporate culture in promoting financial stability and claims analysts are not placing enough emphasis on people.

Why is it that this becomes a thing only when someone who is older and wiser says it is a thing? Saying "it is about the people" seems to be relegated to HR consultants and grey haired wisdom.  

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