WHY BROADBAND MATTERS

BROADBAND DIFFUSION AND ADOPTION

• International

• National

• State

• Rural

WE’RE NUMBER 14!

Nethe

rland

s

Denm

ark

Switzer

land

Korea

Norway

Luxe

mbo

urg

Icela

nd

Franc

e

Sweden

Ger

man

y

United

King

dom

Canad

a

Belgium

United

Sta

tes

Finlan

d

Japa

n

New Z

ealan

d

Austra

lia

Austri

aSpa

inIta

ly

Irelan

d

Portu

gal

Gre

ece

Hunga

ry

Czech

Rep

ublic

Poland

Slovak

Rep

ublic

Chile

Mex

ico

Turke

y

0

5

10

15

20

25

30

35

40

Other Fibre/LAN Cable OECD average

Source: OECD

OECD Fixed (wired) broadband subscriptions per 100 inhabitants, by technology, June 2010

OECD average

4TH AMONG TOP 7 INDUSTRIALIZED

COUNTRIES

0

5

10

15

20

25

30

35

Canada; 30.1

United States; 27.1

France

Germany

United Kingdom

Canada

United States

Japan

OECD

Italy

Fixed (wired) broadband penetration, G7 countries through, June 2010

Source : OECD

IT’S ALL ABOUT BANDWIDTH

Mex

ico

Irelan

d

Luxe

mbo

urg

Turke

y

Belgium

Spain

Italy

United

Sta

tes

Gre

ece

Ger

man

y

Icela

nd

New Z

ealan

d

Norway

Finlan

d

Czech

Rep

ublic

Canad

a

Poland

United

King

dom

Switzer

land

Denm

ark

Austra

lia

Sweden

Austri

a

Slovak

Rep

ublic

Hunga

ry

OECD

Nethe

rland

s

Korea

Franc

e

Portu

gal

Japa

n

20 000

40 000

60 000

80 000

100 000

120 000

2 51

4

6 08

8

10 4

57

10 4

73

10 8

25

12 8

00

14 3

36

14 6

19

15 9

45

16 0

33

17 7

74

17 8

07

18 0

00

18 3

84

18 7

88

19 5

67

19 6

75

19 6

81

20 0

73

20 3

97

21 8

23

23 6

93

25 5

19

26 9

39

27 5

42

30 5

50

33 6

79

52 7

72

54 5

51

103

718

107

725

Average advertised broadband download speed, kbit/s* Median

Average advertised broadband download speed, by country, kbit/s, October 2009

PRICE

TurkeyLuxembourgPortugalNorwayAustraliaNew ZealandMexicoCanadaCzech RepublicAustriaUnited StatesSpainSlovak RepublicNetherlandsIcelandDenmarkPolandBelgiumHungaryGermanyKoreaJapanSwitzerlandFranceSwedenFinlandIrelandUnited KingdomItalyGreece

0 20 40 60 80 100 120 140 160

135.36 91.29 79.53 62.76 59.45 57.06 56.71 54.24 51.64 50.11 49.25 48.34 46.85 41.01 40.63 40.20 39.85 39.75 39.39 38.87 38.50 35.18 33.25 32.70 32.50 32.46 31.33 30.80 29.91 27.72

Broadband average monthly subscription price, Oct. 2009, USD PPP

Average Subscription Price, USD, PPP

Median

2009 E-READINESS RANKINGS

Denmark 1

Sweden 2

Netherlands 3

Norway 4

United States 5Australia 6

Singapore 7

Hong Kong 8

Canada 9

Finland 10Economist Intelligence Unit

www.eic.com

Pew/Internet – August 2010

ADOPTION TRENDS WITHIN DEMOGRAPHIC GROUPS, 2009-10

N U M B E R O F B R O A D B A N D P R O V I D E R S ( N A T I O N A L B R O A D B A N D M A P )

CONSUMER BROADBAND

THERE IS A DIVIDE – IT MATTERS

• Unavailable in some communities

• Bandwidth limits applicationso Education/training

o Telework

o Telemedicine

o eCommerce

o Entertainment

o eGov services

• Brain Drain

• Economic development

COMMERCIAL BROADBANDBUSINESS, SCHOOLS, GOVERNMENT, ETC.

• Higher service level requirements (99.99999%)

• BIG Pipes

• Dedicated connections

• Higher cost in rural vs. urban/suburban areas

• Limited providers in rural areas

COMMERCIAL BROADBAND MATTERS

• Global economy driven by broadband

• Businesses less likely to locate or grow without broadband

• Geographic penalty

• Rural business, governments, schools, hospitals pay more than urban and suburban counterparts

ECONOMIC IMPACT OF DIGITAL EXCLUSION

Southern Rural Development Center

FOR MORE INFORMATION:

WWW.CONNECTINGCOMMUNITIES.INFO