Connecting All Americans Link Hoewing VP, Internet and Technology Policy July 15, 2007
Broadband Penetration Rankings – By Household EU25: 39% Internet, 23% Broadband US50: 70% Internet, 42% Broadband Source: Pew Internet & American Life Project, “Home Broadband Adoption 2006”, May 28, 2006 Source: European Commission, “E-Communications Household Survey”, July 2006 State Data Source: Render Vanderslice & Associates, September 2006
US Internet & Broadband Adoption Significantly Higher than EU Overall
Internet US 70% vs. EU 39%
Broadband US 42% vs. EU 23%
On a state-by-state basis:
The most penetrated US states compare favorably with the most penetrated EU countries (US States would be 8 of the top 10)
The least penetrated US states are above the EU average (23%).
Bottom 3 US States Top 3 US States Page
Platform Competition – Lacking in Europe The majority of European markets have a small non-DSL infrastructure, and cable penetration – particularly – for most of Europe is at less than 21%. Unbundling of DSL throughout the EU is, in large part, to compensate for a lack of platform competition. European Competitive Telecom Association (ECTA), ‘Scorecard’ 1st quarter 2006. 491,100 5,934,604 40,757,959 Europe Total / Average 8,500 2,870,354 8,173,113 UK 63,000 1,550,000 2,727,121 Netherlands 343,000 0 7,038,612 Italy 76,600 284,250 11,305,352 Germany 0 600,000 10,219,301 France 0 630,000 1,351,482 Belgium Total Other BB infrast. (FttH, Sat., WLL, other) Cable Internet broadband connections (total) Total country DSL lines Country
Today’s U.S. Broadband Market is Highly Competitive Most households can get broadband: 82% DSL 94% Cable 50,000 WiFi Hotspots exist nationwide Broadband over powerline now competing in dozens of locations The percent of households subscribing to broadband has exploded: More than 50% of all homes have broadband Carriers are offering lower entry prices for their broadband services: Verizon offers $14.95 DSL Carriers are improving the high-speed options available to customers: Verizon FiOS 50 Mbps Cablevision 16 Mbps Mobile carriers have introduced new services and networks: EVDO (700 kbps average speed) available to 255 million Americans
Customer Time Spent in Selected Forms of Electronic Communication Consumers daily total use is 5.25 hours! Multitasking plays a role. No one form dominates. Sources: (1) “Multitasking Drives Consumer Consumption of Media”, Yankee Group, Jan 26, 2007, Exhibit 1 "Average Media Consumption (Hours per workday) in the United States… " (excerpts) (2) Households in US, 2005 - www.census.gov/population/socdemo/hh-fam/hh1.xls (shows 113M HH in 2006) (3) “The VoIP Evolution Continues: Forecasting Broadband VoIP and Cable Telephony”, Yankee Group, Aug 2006, Exhibit 3 shows 8.5M VoIP HHs (4) “Worldwide Email Usage 2005-2009 Forecast”, IDC, Dec 2005, Table 15 North American and Worldwide Average Daily Person to Person Email Messages Sent – shows 11.97 person to person emails sent. (5) “Daily Internet Activities”, www.pewinternet.org/trends/Daily_Internet_Activities_1.11.07.htm shows 93M Adults use the Internet on any given day.
The Connect Kentucky Model Works Kentucky went from among the bottom states on deployment to one of the top five Kentucky will be at 100% deployment by year’s end Kentucky has reached 42% penetration of broadband