Broadband and Mobile Data

Slide 1: The Future: Broadband & Mobile Data Presentation by Mindy McAdams

Slide 2: 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)

Slide 3: 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

Slide 4: Who’s on top?

Slide 5: 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

Slide 7: 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)

Slide 8: 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

Slide 9: 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)

Slide 10: 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

Slide 11: 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

Slide 12: 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

Slide 14: 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

Slide 15: 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

Slide 16: 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

Slide 17: Your cell phone = your digital wallet  Soda machines  Game arcades  Convenience stores  Fast food

Slide 18: 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

Slide 19: “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

Slide 20: 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

Slide 21: 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

Slide 22: 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

Slide 23: 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

Slide 24: What U.S. users do Source: Pew Internet & American Life Project, 2006

Slide 25: 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

Slide 26: 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

Slide 27: 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)

Slide 28: 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

Slide 29: Who gets the most traffic? (by corporate owner) Source: Nielsen//NetRatings, February 2006

Slide 30: Who gets the most traffic? (by site brand name) Source: Nielsen//NetRatings, February 2006

Slide 31: 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

Slide 33: Now, to look at the global picture …

Slide 34: Huge disparities in access Source: ITU Development Report, 2006

Slide 35: 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

Slide 36: 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

Slide 37: … 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

Slide 38: 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

Slide 39: U.S. broadband in homes Source: Pew Internet & American Life Project, February 2006

Slide 40: The Future: Broadband & Mobile Data Presentation by Mindy McAdams