PM launches new broadband lab in Melbourne

The National Broadband Network (NBN) will encourage more people to work from home and make it easier to live and work in rural and regional Australia, the federal government says.

Prime Minister Julia Gillard and communications minister, Stephen Conroy, launched the Australian Broadband Applications Laboratory at the University of Melbourne on Wednesday.

Gillard received a warm welcome at her old university, in contrast to the reception expected from protesters condemning the government's stance on same-sex marriage and asylum seekers outside the Asialink function she is due to address at lunchtime on Wednesday.

"The NBN will make Australia the most connected continent on the planet," Gillard said, launching the laboratory to help businesses explore new online opportunities.

Information technology drives 78 per cent of productivity gains in services businesses and 85 per cent in manufacturing, Gillard said.

"More than half of Australian businesses aren't on the web," she said.

Senator Conroy said the latest Organisation for Economic Co-operation and Development (OECD) report ranked Australia 18th for broadband penetration among member nations.

"We want to rank in the top five OECD countries for the percentage of businesses and not-for-profits using the internet to drive productivity."

Senator Conroy said the $36 billion NBN would change the way Australians live and work.

"By 2020 ... at least 12 per cent of Australian employees will have an arrangement to work from home for at least part of the week," he said.

The NBN is expected to cover to 93 per cent of homes, schools, hospitals and workplaces and to be complete by 2020.

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