The Future: Broadband

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The FutureBroadband Mobile Data

• Presentation by Mindy McAdams

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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)

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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

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Whos on top?
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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

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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 govt Nearly 11 billion
• Any Korean can get broadband at home today
• Some ISPs charging as little as 19 a month for
  DSL

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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
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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 worlds fifth-largest
  Internet market (26 million users)
• Today Korea has third-highest Internet
  penetration in the world, and the highest in Asia

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The next stage

• Koreas 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
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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
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Popularity of data services

• Koreas 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

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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

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Your cell phone your digital wallet

• Soda machines
• Game arcades
• Convenience stores
• Fast food

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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 sellers 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

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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
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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
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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
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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
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What U.S. users do
Source Pew Internet American Life Project,
2006
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Liars!

• 22 of 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 that

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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

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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)

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Internet usage in the U.S.

• In the past 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
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Who gets the most traffic?(by corporate owner)
Source Nielsen//NetRatings, February 2006
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Who gets the most traffic?(by site brand name)
Source Nielsen//NetRatings, February 2006
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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
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Now, to look at the global picture
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Huge disparities in access
Source ITU Development Report, 2006
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The worlds 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 worlds population lives in the G8
  countries

Source ITUs World Telecommunication Indicators
Database, 2004
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The worlds digital divide

• Total Internet users on entire African continent
• 8 times as many are in the U.S.
• 3 times as many in Japan
• More than twice as many in Germany
• Today 30 countries have an Internet penetration
  of less than 1 of their population

Source ITUs World Telecommunication Indicators
Database, 2004
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and its 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 ITUs World Telecommunication Indicators
Database, 2004
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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
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U.S. broadband in homes
Source Pew Internet American Life Project,
February 2006
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The End

• Presentation by Mindy McAdams