The Future: Broadband & Mobile Data Presentation by Mindy McAdams
What is “broadband” Internet? <ul><li>Dial-up: 56,000 bits per second (56 Kbps) </li></ul><ul><li>U.S. Federal Communicati...
Benefits of broadband <ul><li>“Always on” </li></ul><ul><ul><li>As opposed to dial-up: You disconnect when you finish  </l...
Who’s on top?
Broadband in the European Union <ul><li>Denmark, Finland, the Netherlands and Sweden – penetration rates higher than 30% a...
 
Broadband in the U.S. <ul><li>July 2007:  83.43 percent  of “active Internet users” in U.S. homes have access ( source:  N...
Broadband growth <ul><li>U.S. </li></ul><ul><ul><li>2001:  4.5  subscribers per 100 people </li></ul></ul><ul><ul><li>2005...
Factors in Korea <ul><li>2003: Government pledged to expand broadband  infrastructure  to reach  every household  by the e...
Rapid development in Korea <ul><li>Korean War, 1950-1953 </li></ul><ul><li>Shortage of wired telephones until the  mid-198...
Growth of Internet in Korea <ul><li>1995: Korea had  less than  1 Internet user per 100 inhabitants </li></ul><ul><li>1999...
The next stage <ul><li>Korea’s broadband market is still advancing, improving  </li></ul><ul><li>Subscribers now switch pl...
 
The Internet in your hand <ul><li>More than 30 million Koreans (total pop. 48 million) carry high-end “smart phones” today...
Popularity of data services <ul><li>Korea’s largest mobile-phone operator says mobile data and wireless Internet services ...
More than talking & texting <ul><li>In South Korea and Japan, mobile phone service providers make profits on:  </li></ul><...
Your cell phone = your digital wallet <ul><li>Soda machines </li></ul><ul><li>Game arcades </li></ul><ul><li>Convenience s...
Using your phone to pay online <ul><li>Order a downloadable song on your computer </li></ul><ul><li>Enter your cell phone ...
“3G” cell phone penetration <ul><li>93% of 3G subscribers are in Asia-Pacific and the Americas </li></ul><ul><li>At the en...
Mobile in Europe <ul><li>EU mobile phone penetration rose to 112% in 2007, compared with 103% in 2006 </li></ul><ul><li>3r...
U.S. use of cell phones <ul><li>74% of Americans who own cell phones say they have used it in an emergency (and got help) ...
U.S. use of cell phones <ul><li>36% of cell phone owners say they have been shocked from time to time at the size of their...
What U.S. users wish for <ul><li>47% of cell owners say they would like to have  maps  on their phone  </li></ul><ul><li>3...
What U.S. users do Source:  Pew Internet & American Life Project, 2006
Liars! <ul><li>22% of all cell phone users say they are “not always truthful” about exactly where they are when they are o...
How popular are cell phones? <ul><li>195 million  cell phones in the U.S. (current est.): 65 percent </li></ul><ul><li>Tot...
Internet usage in the U.S. <ul><li>About  67%  of all Americans now use the Web </li></ul><ul><li>About  84%  of all 18- t...
Internet usage in the U.S. <ul><li>In one year, the number of active  home   broadband  users in the U.S. increased from 7...
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 <ul><li>Since Feb. 2003,  average  time spent on the computer at home  per month  has increased by 5 hours (from 25...
 
Now, to look at the global picture …
Huge disparities in access Source:  ITU Development Report, 2006
The world’s digital divide <ul><li>2004: Fewer than 3 out of every 100 Africans use the Internet, compared with an average...
The world’s digital divide <ul><li>Total Internet users on entire African continent </li></ul><ul><ul><li>In U.S.: 8 times...
… and it’s slow too! <ul><li>Bandwidth  is also not equal around the world (affects the  speed  at which Web sites in othe...
A rural / urban divide in the U.S. <ul><li>By the end of 2005,  24%  of rural Americans had high-speed Internet connection...
U.S. broadband in homes Source:  Pew Internet & American Life Project, February 2006
The Future: Broadband & Mobile Data Presentation by Mindy McAdams
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Broadband and Mobile Data

  1. 1. The Future: Broadband & Mobile Data Presentation by Mindy McAdams
  2. 2. What is “broadband” Internet? <ul><li>Dial-up: 56,000 bits per second (56 Kbps) </li></ul><ul><li>U.S. Federal Communications Commission (FCC) defines broadband as 200 Kbps or faster </li></ul><ul><li>South Korea: Slowest rate is 1,000 Kbps (1 megabit per second) </li></ul>
  3. 3. Benefits of broadband <ul><li>“Always on” </li></ul><ul><ul><li>As opposed to dial-up: You disconnect when you finish </li></ul></ul><ul><ul><li>Then re-connect each time you need the Internet (dial-up) </li></ul></ul><ul><li>Much faster file transfers and downloads (typical: 10 times faster) </li></ul><ul><li>Can handle a higher data rate </li></ul><ul><ul><li>Allows real-time video </li></ul></ul>
  4. 4. Who’s on top?
  5. 5. Broadband in the European Union <ul><li>Denmark, Finland, the Netherlands and Sweden – penetration rates higher than 30% at the end of 2007 </li></ul><ul><li>United Kingdom, Belgium, Luxembourg and France – penetration rates also higher than the U.S. (@ 22.1%) in July 2007 </li></ul><ul><li>EU added 19 million broadband lines in 2007 </li></ul><ul><li>Europe’s overall broadband penetration = 20% </li></ul>Source: European Commission 13th Progress Report on the Single Telecoms Market
  6. 7. Broadband in the U.S. <ul><li>July 2007: 83.43 percent of “active Internet users” in U.S. homes have access ( source: Nielsen//NetRatings) </li></ul><ul><li>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) </li></ul>
  7. 8. Broadband growth <ul><li>U.S. </li></ul><ul><ul><li>2001: 4.5 subscribers per 100 people </li></ul></ul><ul><ul><li>2005, Dec.: 16.8 per 100 </li></ul></ul><ul><li>South Korea </li></ul><ul><ul><li>2001: 17.2 subscribers per 100 people </li></ul></ul><ul><ul><li>2005, Dec.: 25.4 per 100 </li></ul></ul>
  8. 9. Factors in Korea <ul><li>2003: Government pledged to expand broadband infrastructure to reach every household by the end of 2005 </li></ul><ul><li>Country is smaller than state of Virginia </li></ul><ul><li>Cost to gov’t: Nearly $11 billion </li></ul><ul><li>Any Korean could get broadband at home in 2005 </li></ul><ul><li>Some ISPs charged as little as $19 a month for DSL – when U.S. telcos charged $60-$70 per month (competition) </li></ul>
  9. 10. Rapid development in Korea <ul><li>Korean War, 1950-1953 </li></ul><ul><li>Shortage of wired telephones until the mid-1980s </li></ul><ul><li>Number of mobile phone users passed 10 million mark in 1998 </li></ul><ul><li>Number of Internet users passed 10 million in 1999 </li></ul><ul><li>48.8 million: total population today </li></ul>Source: Digital Review of Asia Pacific, 2005
  10. 11. Growth of Internet in Korea <ul><li>1995: Korea had less than 1 Internet user per 100 inhabitants </li></ul><ul><li>1999: Korea surpassed the developed-nation average </li></ul><ul><li>2002: Korea was the world’s fifth-largest Internet market (26 million users) </li></ul><ul><li>2005: Korea had third-highest Internet penetration in the world, and the highest in Asia </li></ul>
  11. 12. The next stage <ul><li>Korea’s broadband market is still advancing, improving </li></ul><ul><li>Subscribers now switch platforms to get increased bandwidth </li></ul><ul><li>Fiber optic-based broadband connections grew 52.4% in 2005 (Korea) </li></ul><ul><li>Number of DSL subscribers fell (-3.3%) </li></ul><ul><li>Number of cable subscribers fell (-1.7%) </li></ul>Source: OECD Broadband Statistics, December 2005
  12. 14. The Internet in your hand <ul><li>More than 30 million Koreans (total pop. 48 million) carry high-end “smart phones” today </li></ul><ul><li>In September 2006, the two largest cell phone service providers will open their networks to regular Wi-Fi </li></ul><ul><li>Phones will be equivalent to (tiny) computers </li></ul>Source: Korea Times, Jan. 9, 2006
  13. 15. Popularity of data services <ul><li>Korea’s largest mobile-phone operator says mobile data and wireless Internet services account for about 40% of its yearly revenues </li></ul><ul><li>A huge factor is renewing song lists each month, for a fee of 5,000 won ($5.30) per month </li></ul><ul><li>Cell phone customers get unlimited access to 700,000 songs </li></ul>
  14. 16. More than talking & texting <ul><li>In South Korea and Japan, mobile phone service providers make profits on: </li></ul><ul><ul><li>Mobile Internet access </li></ul></ul><ul><ul><li>Entertainment, ringtones and music </li></ul></ul><ul><ul><li>Games </li></ul></ul><ul><ul><li>Mobile TV and video </li></ul></ul><ul><ul><li>Community portals </li></ul></ul><ul><ul><li>Mobile transactions </li></ul></ul>
  15. 17. Your cell phone = your digital wallet <ul><li>Soda machines </li></ul><ul><li>Game arcades </li></ul><ul><li>Convenience stores </li></ul><ul><li>Fast food </li></ul>
  16. 18. Using your phone to pay online <ul><li>Order a downloadable song on your computer </li></ul><ul><li>Enter your cell phone number and a national identification number on the seller’s Web site </li></ul><ul><li>A computer verifies that the two numbers match </li></ul><ul><li>A code is sent to your phone as a text message </li></ul><ul><li>You type the code on the Web site (on your computer) and get the song </li></ul><ul><li>The charge shows up on your cell phone bill </li></ul>
  17. 19. “3G” cell phone penetration <ul><li>93% of 3G subscribers are in Asia-Pacific and the Americas </li></ul><ul><li>At the end of 2004, three countries had over 100 million 3G subscribers </li></ul><ul><ul><li>The United States (49.5 million) </li></ul></ul><ul><ul><li>South Korea (27.5 million) </li></ul></ul><ul><ul><li>Japan (25.7 million) </li></ul></ul><ul><li>That was three-fourths of the worldwide total </li></ul>Source: ITU Development Report, 2006
  18. 20. Mobile in Europe <ul><li>EU mobile phone penetration rose to 112% in 2007, compared with 103% in 2006 </li></ul><ul><li>3rd Generation (3G) mobile penetration doubled, to 20% in 2007 (88 million subscriptions) </li></ul><ul><li>Mobile data services grew by about 40% </li></ul>Source: European Commission 13th Progress Report on the Single Telecoms Market
  19. 21. U.S. use of cell phones <ul><li>74% of Americans who own cell phones say they have used it in an emergency (and got help) </li></ul><ul><li>28% of cell phone owners admit they sometimes “do not drive as safely as they should” while using their cell phone </li></ul>Source: Pew Internet & American Life Project, 2006
  20. 22. U.S. use of cell phones <ul><li>36% of cell phone owners say they have been shocked from time to time at the size of their monthly cell phone bill </li></ul><ul><li>82% of all Americans say they have been “irritated” by loud and annoying people making a call in a public place </li></ul>Source: Pew Internet & American Life Project, 2006
  21. 23. What U.S. users wish for <ul><li>47% of cell owners say they would like to have maps on their phone </li></ul><ul><li>38% say they would like to have IMs from selected friends sent to their phone </li></ul><ul><li>24% of cell owners would like to add e-mail </li></ul><ul><li>24% of cell owners say they would like to search for movie listings , weather reports and stock quotes </li></ul>Source: Pew Internet & American Life Project, 2006
  22. 24. What U.S. users do Source: Pew Internet & American Life Project, 2006
  23. 25. Liars! <ul><li>22% of all cell phone users say they are “not always truthful” about exactly where they are when they are on the phone </li></ul><ul><li>39% of cell phone users ages 18-29 say this </li></ul>
  24. 26. How popular are cell phones? <ul><li>195 million cell phones in the U.S. (current est.): 65 percent </li></ul><ul><li>Total U.S. population: 298.4 million (July 2006 est., U.S. Census) </li></ul><ul><li>35 million -plus cell phones in South Korea (May 2004 est.): 73 percent then </li></ul><ul><li>Total South Korea population: 48.8 million </li></ul>
  25. 27. Internet usage in the U.S. <ul><li>About 67% of all Americans now use the Web </li></ul><ul><li>About 84% of all 18- to 29-year-olds now use the Web </li></ul><ul><li>89% of all college graduates do </li></ul><ul><li>85% of people earning $50,000 to $75,000 do </li></ul><ul><li>(Data from early 2005) </li></ul>
  26. 28. Internet usage in the U.S. <ul><li>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) </li></ul><ul><li>68% of active Internet users (at home) were using broadband </li></ul><ul><li>Overall Internet penetration in the U.S. has stabilized in recent years, reaching 74% (of homes) </li></ul>Source: Nielsen//NetRatings, February 2006
  27. 29. Who gets the most traffic? (by corporate owner) Source: Nielsen//NetRatings, February 2006
  28. 30. Who gets the most traffic? (by site brand name) Source: Nielsen//NetRatings, February 2006
  29. 31. Trends <ul><li>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) </li></ul><ul><li>Use of online video is growing: </li></ul><ul><ul><li>MSN Video had 9.3 million unique visitors in Feb. 2006, a 44% increase over Feb. 2005 </li></ul></ul><ul><ul><li>YouTube had 9.0 million unique visitors </li></ul></ul><ul><ul><li>Google Video had 6.2 million unique visitors </li></ul></ul>Source: Nielsen//NetRatings, February 2006
  30. 33. Now, to look at the global picture …
  31. 34. Huge disparities in access Source: ITU Development Report, 2006
  32. 35. The world’s digital divide <ul><li>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 </li></ul><ul><ul><li>G8: Canada, France, Germany, Italy, Japan, Russia, U.K. and U.S. </li></ul></ul><ul><li>Total Internet users in the G8 countries (429 million) roughly equals the rest of the world combined (444 million ) </li></ul><ul><li>15% of the world’s population lives in the G8 countries </li></ul>Source: ITU’s World Telecommunication Indicators Database, 2004
  33. 36. The world’s digital divide <ul><li>Total Internet users on entire African continent </li></ul><ul><ul><li>In U.S.: 8 times as many </li></ul></ul><ul><ul><li>In Japan: 3 times as many </li></ul></ul><ul><ul><li>In Germany: more than twice as many </li></ul></ul><ul><li>In 2004, 30 countries had an Internet penetration of less than 1% of their entire population </li></ul>Source: ITU’s World Telecommunication Indicators Database, 2004
  34. 37. … and it’s slow too! <ul><li>Bandwidth is also not equal around the world (affects the speed at which Web sites in other countries can be accessed) </li></ul><ul><li>Denmark (a tiny country) has more than twice the international Internet bandwidth of ALL of Latin America and the Caribbean </li></ul>Source: ITU’s World Telecommunication Indicators Database, 2004
  35. 38. A rural / urban divide in the U.S. <ul><li>By the end of 2005, 24% of rural Americans had high-speed Internet connections at home … </li></ul><ul><li>Compared with 39% of adult Americans living in cities and suburbs </li></ul>Source: Pew Internet & American Life Project, February 2006
  36. 39. U.S. broadband in homes Source: Pew Internet & American Life Project, February 2006
  37. 40. The Future: Broadband & Mobile Data Presentation by Mindy McAdams

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