The Future: Broadband & Mobile Data Presentation by Mindy McAdams

What is “broadband” Internet? Dial-up: 56,000 bits per second (56 Kbps) U.S. Federal Communications Commission (FCC) defines broadband as 200 Kbps or faster South Korea: Slowest rate is 1,000 Kbps (1 megabit per second)

Dial-up: 56,000 bits per second (56 Kbps)

U.S. Federal Communications Commission (FCC) defines broadband as 200 Kbps or faster

South Korea: Slowest rate is 1,000 Kbps (1 megabit per second)

Benefits of broadband “Always on” As opposed to dial-up: You disconnect when you finish Then re-connect each time you need the Internet (dial-up) Much faster file transfers and downloads (typical: 10 times faster) Can handle a higher data rate Allows real-time video

“Always on”

As opposed to dial-up: You disconnect when you finish

Then re-connect each time you need the Internet (dial-up)

Much faster file transfers and downloads (typical: 10 times faster)

Can handle a higher data rate

Allows real-time video

Who’s on top?

Broadband in the European Union Denmark, Finland, the Netherlands and Sweden – penetration rates higher than 30% at the end of 2007 United Kingdom, Belgium, Luxembourg and France – penetration rates also higher than the U.S. (@ 22.1%) in July 2007 EU added 19 million broadband lines in 2007 Europe’s overall broadband penetration = 20% Source: European Commission 13th Progress Report on the Single Telecoms Market

Denmark, Finland, the Netherlands and Sweden – penetration rates higher than 30% at the end of 2007

United Kingdom, Belgium, Luxembourg and France – penetration rates also higher than the U.S. (@ 22.1%) in July 2007

EU added 19 million broadband lines in 2007

Europe’s overall broadband penetration = 20%

Broadband in the U.S. July 2007: 83.43 percent of “active Internet users” in U.S. homes have access ( source: Nielsen//NetRatings) End of March 2006: 42 percent of all Americans had high-speed Internet at home – up from 30 percent in March 2005 ( source: Pew Internet and American Life)

July 2007: 83.43 percent of “active Internet users” in U.S. homes have access ( source: Nielsen//NetRatings)

End of March 2006: 42 percent of all Americans had high-speed Internet at home – up from 30 percent in March 2005 ( source: Pew Internet and American Life)

Broadband growth U.S. 2001: 4.5 subscribers per 100 people 2005, Dec.: 16.8 per 100 South Korea 2001: 17.2 subscribers per 100 people 2005, Dec.: 25.4 per 100

U.S.

2001: 4.5 subscribers per 100 people

2005, Dec.: 16.8 per 100

South Korea

2001: 17.2 subscribers per 100 people

2005, Dec.: 25.4 per 100

Factors in Korea 2003: Government pledged to expand broadband infrastructure to reach every household by the end of 2005 Country is smaller than state of Virginia Cost to gov’t: Nearly $11 billion Any Korean could get broadband at home in 2005 Some ISPs charged as little as $19 a month for DSL – when U.S. telcos charged $60-$70 per month (competition)

2003: Government pledged to expand broadband infrastructure to reach every household by the end of 2005

Country is smaller than state of Virginia

Cost to gov’t: Nearly $11 billion

Any Korean could get broadband at home in 2005

Some ISPs charged as little as $19 a month for DSL – when U.S. telcos charged $60-$70 per month (competition)

Rapid development in Korea Korean War, 1950-1953 Shortage of wired telephones until the mid-1980s Number of mobile phone users passed 10 million mark in 1998 Number of Internet users passed 10 million in 1999 48.8 million: total population today Source: Digital Review of Asia Pacific, 2005

Korean War, 1950-1953

Shortage of wired telephones until the mid-1980s

Number of mobile phone users passed 10 million mark in 1998

Number of Internet users passed 10 million in 1999

48.8 million: total population today

Growth of Internet in Korea 1995: Korea had less than 1 Internet user per 100 inhabitants 1999: Korea surpassed the developed-nation average 2002: Korea was the world’s fifth-largest Internet market (26 million users) 2005: Korea had third-highest Internet penetration in the world, and the highest in Asia

1995: Korea had less than 1 Internet user per 100 inhabitants

1999: Korea surpassed the developed-nation average

2002: Korea was the world’s fifth-largest Internet market (26 million users)

2005: Korea had third-highest Internet penetration in the world, and the highest in Asia

The next stage Korea’s broadband market is still advancing, improving Subscribers now switch platforms to get increased bandwidth Fiber optic-based broadband connections grew 52.4% in 2005 (Korea) Number of DSL subscribers fell (-3.3%) Number of cable subscribers fell (-1.7%) Source: OECD Broadband Statistics, December 2005

Korea’s broadband market is still advancing, improving

Subscribers now switch platforms to get increased bandwidth

Fiber optic-based broadband connections grew 52.4% in 2005 (Korea)

Number of DSL subscribers fell (-3.3%)

Number of cable subscribers fell (-1.7%)

The Internet in your hand More than 30 million Koreans (total pop. 48 million) carry high-end “smart phones” today In September 2006, the two largest cell phone service providers will open their networks to regular Wi-Fi Phones will be equivalent to (tiny) computers Source: Korea Times, Jan. 9, 2006

More than 30 million Koreans (total pop. 48 million) carry high-end “smart phones” today

In September 2006, the two largest cell phone service providers will open their networks to regular Wi-Fi

Phones will be equivalent to (tiny) computers

Popularity of data services Korea’s largest mobile-phone operator says mobile data and wireless Internet services account for about 40% of its yearly revenues A huge factor is renewing song lists each month, for a fee of 5,000 won ($5.30) per month Cell phone customers get unlimited access to 700,000 songs

Korea’s largest mobile-phone operator says mobile data and wireless Internet services account for about 40% of its yearly revenues

A huge factor is renewing song lists each month, for a fee of 5,000 won ($5.30) per month

Cell phone customers get unlimited access to 700,000 songs

More than talking & texting In South Korea and Japan, mobile phone service providers make profits on: Mobile Internet access Entertainment, ringtones and music Games Mobile TV and video Community portals Mobile transactions

In South Korea and Japan, mobile phone service providers make profits on:

Mobile Internet access

Entertainment, ringtones and music

Games

Mobile TV and video

Community portals

Mobile transactions

Your cell phone = your digital wallet Soda machines Game arcades Convenience stores Fast food

Soda machines

Game arcades

Convenience stores

Fast food

Using your phone to pay online Order a downloadable song on your computer Enter your cell phone number and a national identification number on the seller’s Web site A computer verifies that the two numbers match A code is sent to your phone as a text message You type the code on the Web site (on your computer) and get the song The charge shows up on your cell phone bill

Order a downloadable song on your computer

Enter your cell phone number and a national identification number on the seller’s Web site

A computer verifies that the two numbers match

A code is sent to your phone as a text message

You type the code on the Web site (on your computer) and get the song

The charge shows up on your cell phone bill

“3G” cell phone penetration 93% of 3G subscribers are in Asia-Pacific and the Americas At the end of 2004, three countries had over 100 million 3G subscribers The United States (49.5 million) South Korea (27.5 million) Japan (25.7 million) That was three-fourths of the worldwide total Source: ITU Development Report, 2006

93% of 3G subscribers are in Asia-Pacific and the Americas

At the end of 2004, three countries had over 100 million 3G subscribers

The United States (49.5 million)

South Korea (27.5 million)

Japan (25.7 million)

That was three-fourths of the worldwide total

Mobile in Europe EU mobile phone penetration rose to 112% in 2007, compared with 103% in 2006 3rd Generation (3G) mobile penetration doubled, to 20% in 2007 (88 million subscriptions) Mobile data services grew by about 40% Source: European Commission 13th Progress Report on the Single Telecoms Market

EU mobile phone penetration rose to 112% in 2007, compared with 103% in 2006

3rd Generation (3G) mobile penetration doubled, to 20% in 2007 (88 million subscriptions)

Mobile data services grew by about 40%

U.S. use of cell phones 74% of Americans who own cell phones say they have used it in an emergency (and got help) 28% of cell phone owners admit they sometimes “do not drive as safely as they should” while using their cell phone Source: Pew Internet & American Life Project, 2006

74% of Americans who own cell phones say they have used it in an emergency (and got help)

28% of cell phone owners admit they sometimes “do not drive as safely as they should” while using their cell phone

U.S. use of cell phones 36% of cell phone owners say they have been shocked from time to time at the size of their monthly cell phone bill 82% of all Americans say they have been “irritated” by loud and annoying people making a call in a public place Source: Pew Internet & American Life Project, 2006

36% of cell phone owners say they have been shocked from time to time at the size of their monthly cell phone bill

82% of all Americans say they have been “irritated” by loud and annoying people making a call in a public place

What U.S. users wish for 47% of cell owners say they would like to have maps on their phone 38% say they would like to have IMs from selected friends sent to their phone 24% of cell owners would like to add e-mail 24% of cell owners say they would like to search for movie listings , weather reports and stock quotes Source: Pew Internet & American Life Project, 2006

47% of cell owners say they would like to have maps on their phone

38% say they would like to have IMs from selected friends sent to their phone

24% of cell owners would like to add e-mail

24% of cell owners say they would like to search for movie listings , weather reports and stock quotes

What U.S. users do Source: Pew Internet & American Life Project, 2006

Liars! 22% of all cell phone users say they are “not always truthful” about exactly where they are when they are on the phone 39% of cell phone users ages 18-29 say this

22% of all cell phone users say they are “not always truthful” about exactly where they are when they are on the phone

39% of cell phone users ages 18-29 say this

How popular are cell phones? 195 million cell phones in the U.S. (current est.): 65 percent Total U.S. population: 298.4 million (July 2006 est., U.S. Census) 35 million -plus cell phones in South Korea (May 2004 est.): 73 percent then Total South Korea population: 48.8 million

195 million cell phones in the U.S. (current est.): 65 percent

Total U.S. population: 298.4 million (July 2006 est., U.S. Census)

35 million -plus cell phones in South Korea (May 2004 est.): 73 percent then

Total South Korea population: 48.8 million

Internet usage in the U.S. About 67% of all Americans now use the Web About 84% of all 18- to 29-year-olds now use the Web 89% of all college graduates do 85% of people earning $50,000 to $75,000 do (Data from early 2005)

About 67% of all Americans now use the Web

About 84% of all 18- to 29-year-olds now use the Web

89% of all college graduates do

85% of people earning $50,000 to $75,000 do

(Data from early 2005)

Internet usage in the U.S. In one year, the number of active home broadband users in the U.S. increased from 74.3 million (Feb. 2005) to 95.5 million (Feb. 2006) 68% of active Internet users (at home) were using broadband Overall Internet penetration in the U.S. has stabilized in recent years, reaching 74% (of homes) Source: Nielsen//NetRatings, February 2006

In one year, the number of active home broadband users in the U.S. increased from 74.3 million (Feb. 2005) to 95.5 million (Feb. 2006)

68% of active Internet users (at home) were using broadband

Overall Internet penetration in the U.S. has stabilized in recent years, reaching 74% (of homes)

Who gets the most traffic? (by corporate owner) Source: Nielsen//NetRatings, February 2006

Who gets the most traffic? (by site brand name) Source: Nielsen//NetRatings, February 2006

Trends Since Feb. 2003, average time spent on the computer at home per month has increased by 5 hours (from 25.5 hours per month to 30.5) Use of online video is growing: MSN Video had 9.3 million unique visitors in Feb. 2006, a 44% increase over Feb. 2005 YouTube had 9.0 million unique visitors Google Video had 6.2 million unique visitors Source: Nielsen//NetRatings, February 2006

Since Feb. 2003, average time spent on the computer at home per month has increased by 5 hours (from 25.5 hours per month to 30.5)

Use of online video is growing:

MSN Video had 9.3 million unique visitors in Feb. 2006, a 44% increase over Feb. 2005

YouTube had 9.0 million unique visitors

Google Video had 6.2 million unique visitors

Now, to look at the global picture …

Huge disparities in access Source: ITU Development Report, 2006

The world’s digital divide 2004: Fewer than 3 out of every 100 Africans use the Internet, compared with an average of 1 out of every 2 inhabitants of the G8 countries G8: Canada, France, Germany, Italy, Japan, Russia, U.K. and U.S. Total Internet users in the G8 countries (429 million) roughly equals the rest of the world combined (444 million ) 15% of the world’s population lives in the G8 countries Source: ITU’s World Telecommunication Indicators Database, 2004

2004: Fewer than 3 out of every 100 Africans use the Internet, compared with an average of 1 out of every 2 inhabitants of the G8 countries

G8: Canada, France, Germany, Italy, Japan, Russia, U.K. and U.S.

Total Internet users in the G8 countries (429 million) roughly equals the rest of the world combined (444 million )

15% of the world’s population lives in the G8 countries

The world’s digital divide Total Internet users on entire African continent In U.S.: 8 times as many In Japan: 3 times as many In Germany: more than twice as many In 2004, 30 countries had an Internet penetration of less than 1% of their entire population Source: ITU’s World Telecommunication Indicators Database, 2004

Total Internet users on entire African continent

In U.S.: 8 times as many

In Japan: 3 times as many

In Germany: more than twice as many

In 2004, 30 countries had an Internet penetration of less than 1% of their entire population

… and it’s slow too! Bandwidth is also not equal around the world (affects the speed at which Web sites in other countries can be accessed) Denmark (a tiny country) has more than twice the international Internet bandwidth of ALL of Latin America and the Caribbean Source: ITU’s World Telecommunication Indicators Database, 2004

Bandwidth is also not equal around the world (affects the speed at which Web sites in other countries can be accessed)

Denmark (a tiny country) has more than twice the international Internet bandwidth of ALL of Latin America and the Caribbean

A rural / urban divide in the U.S. By the end of 2005, 24% of rural Americans had high-speed Internet connections at home … Compared with 39% of adult Americans living in cities and suburbs Source: Pew Internet & American Life Project, February 2006

By the end of 2005, 24% of rural Americans had high-speed Internet connections at home …

Compared with 39% of adult Americans living in cities and suburbs

U.S. broadband in homes Source: Pew Internet & American Life Project, February 2006

The Future: Broadband & Mobile Data Presentation by Mindy McAdams