The Future: Broadband & Mobile Data Presentation by Mindy McAdams

The Future:The Future:Broadband & Mobile DataBroadband & Mobile Data

Presentation by Mindy McAdamsPresentation by Mindy McAdams

What is “broadband” Internet?What is “broadband” Internet?

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

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

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

Benefits of broadbandBenefits of broadband ““Always on”Always on”

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

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

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

Can handle a higher Can handle a higher data ratedata rate• Allows real-time videoAllows real-time video

Who’s on top?Who’s on top?

Broadband growthBroadband growth

U.S.U.S.• 2001: 2001: 4.54.5 subscribers per 100 people subscribers per 100 people• 2005, Dec.: 2005, Dec.: 16.816.8 per 100 per 100

South KoreaSouth Korea• 2001: 2001: 17.217.2 subscribers per 100 people subscribers per 100 people• 2005, Dec.: 2005, Dec.: 25.425.4 per 100 per 100

Factors in KoreaFactors in Korea

2003: Government pledged to expand 2003: Government pledged to expand broadband broadband infrastructureinfrastructure to reach to reach every every householdhousehold by the end of 2005 by the end of 2005

Country is Country is smaller thansmaller than state of Virginia state of Virginia Cost to gov’t: Nearly $11 billionCost to gov’t: Nearly $11 billion Any Korean can get broadband Any Korean can get broadband at homeat home

todaytoday Some ISPs charging as little as $19 a Some ISPs charging as little as $19 a

month for DSLmonth for DSL

Rapid development in KoreaRapid development in Korea

Korean War, 1950-1953Korean War, 1950-1953 Shortage of wired telephones until Shortage of wired telephones until

the the mid-1980smid-1980s Number of mobile phone users Number of mobile phone users

passed 10 million mark in 1998passed 10 million mark in 1998 Number of Internet users passed 10 Number of Internet users passed 10

million in 1999million in 1999 48.8 million: total population today48.8 million: total population today

Source: Digital Review of Asia Pacific, 2005

Growth of Internet in KoreaGrowth of Internet in Korea

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

1999: Korea surpassed the developed-1999: Korea surpassed the developed-nation averagenation average

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

Today: Korea has third-highest Internet Today: Korea has third-highest Internet penetration in the world, and the highest penetration in the world, and the highest in Asiain Asia

The next stageThe next stage

Korea’s broadband market is still Korea’s broadband market is still advancing, improving advancing, improving

Subscribers now switch platforms to get Subscribers now switch platforms to get increased bandwidthincreased bandwidth

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

Number of DSL subscribers fell (-3.3%) Number of DSL subscribers fell (-3.3%) Number of cable subscribers fell (-1.7%)Number of cable subscribers fell (-1.7%)

Source: OECD Broadband Statistics, December 2005

The Internet in your handThe Internet in your hand

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

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

Phones will be equivalent to (tiny) Phones will be equivalent to (tiny) computerscomputers

Source: Korea Times, Jan. 9, 2006

Popularity of data servicesPopularity of data services

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

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

Cell phone customers get Cell phone customers get unlimited unlimited accessaccess to 700,000 songs to 700,000 songs

More than talking & textingMore than talking & texting

In South Korea and Japan, mobile In South Korea and Japan, mobile phone service providers make profits phone service providers make profits on: on: • Mobile Internet accessMobile Internet access• Entertainment, ringtones and musicEntertainment, ringtones and music• GamesGames• Mobile TV and videoMobile TV and video• Community portalsCommunity portals• Mobile transactionsMobile transactions

Your cell phone = your digital walletYour cell phone = your digital wallet

Soda machinesSoda machines Game arcadesGame arcades Convenience Convenience

storesstores Fast foodFast food

Using your phone to pay onlineUsing your phone to pay online

Order a downloadable song on your computerOrder a downloadable song on your computer Enter your cell phone number Enter your cell phone number andand a national a national

identification number on the seller’s Web siteidentification number on the seller’s Web site A computer verifies that the two numbers A computer verifies that the two numbers

matchmatch A code is sent to your phone as a text A code is sent to your phone as a text

messagemessage You type the code on the Web site (on your You type the code on the Web site (on your

computer) and get the songcomputer) and get the song The charge shows up on your cell phone billThe charge shows up on your cell phone bill

““3G” cell phone penetration3G” 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

U.S. use of cell phonesU.S. use of cell phones

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

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

Source: Pew Internet & American Life Project, 2006

U.S. use of cell phonesU.S. use of cell phones

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

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


What U.S. users wish forWhat 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


What U.S. users doWhat U.S. users do


Liars!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

How popular are cell phones?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)(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 48.8 millionmillion

Internet usage in the U.S.Internet usage in the U.S.

About 67% of all Americans now use About 67% of all Americans now use the Webthe Web

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

89% of all 89% of all college graduatescollege graduates do do 85% of people 85% of people earningearning $50,000 to $50,000 to

$75,000 do$75,000 do(Data from early 2005)(Data from early 2005)

Internet usage in the U.S.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

Who gets the most traffic?Who gets the most traffic?(by corporate owner)(by corporate owner)


Who gets the most traffic?Who gets the most traffic?(by site brand name)(by site brand name)


TrendsTrends

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

Use of Use of online videoonline video is growing: 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 …Now, to look at the global picture …

Huge disparities in accessHuge disparities in access

Source: ITU Development Report, 2006

The world’s digital divideThe world’s digital divide

2004: Fewer than 3 out of every 100 2004: Fewer than 3 out of every 100 Africans use the Internet, compared with Africans use the Internet, compared with an average of 1 out of every 2 inhabitants an average of 1 out of every 2 inhabitants of the G8 countries of the G8 countries • G8: Canada, France, Germany, Italy, Japan, G8: Canada, France, Germany, Italy, Japan,

Russia, U.K. and U.S.Russia, U.K. and U.S. Total Internet users in the G8 countries Total Internet users in the G8 countries

(429 million) roughly (429 million) roughly equalsequals the rest of the rest of the world combined (444 million )the world combined (444 million )

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

Source: ITU’s World Telecommunication Indicators Database, 2004

The world’s digital divideThe world’s digital divide

Total Internet users on entire African Total Internet users on entire African continentcontinent• 8 times as many are in the U.S.8 times as many are in the U.S.• 3 times as many in Japan3 times as many in Japan• More than twice as many in GermanyMore than twice as many in Germany

Today Today 30 countries30 countries have an have an Internet penetration of less than 1% Internet penetration of less than 1% of their population of their population Source: ITU’s World Telecommunication Indicators Database, 2004

… … and it’s slow too!and it’s slow too!

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

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

Source: ITU’s World Telecommunication Indicators Database, 2004

A rural / urban divide in the U.S.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

U.S. broadband in homesU.S. broadband in homes

Source: Pew Internet & American Life Project, February 2006

The EndThe End

Presentation by Mindy McAdamsPresentation by Mindy McAdams

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The Future: Broadband & Mobile Data Presentation by Mindy McAdams