INTERNET AND BROADBAND

written by: Steve Galloway; article published: year 2007, month 05;

In: Root » Electronics and communication » Satellite

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The United States leads the world with over 167 million Internet users of which more than one third have broadband connectivity, according to a study by Arbitron. This study concluded that 64 percent of Internet users who have broadband access were connected through their workplace, and the balance have home access. The Internet has transitioned from text-based email and file transfer in the mid-1990s to digital audio broadcasting and animated advertising in early 2000. The demand for high bandwidth applications such as animation, video streaming, and high-speed connections to corporate networks has led to a multi-megabit bandwidth race. Digital subscriber line (DSL) and cable modem technologies are main contenders for this high bandwidth race, followed by emerging wireless networks.

In the autumn of 2000, the U.S. Department of Commerce found that 51 percent of all American homes had a computer, and that nearly two-thirds of American Internet users had bought something online. These percentages are similar to those of other developed nations, as depicted in Table 3-1.

PERCENTAGE OF PEOPLE WITH INTERNET ACCESS AT HOME OR WORK

Internet Access by Country

(AGE 16+) ACCESS AT HOME ACCESS AT WORK
Country Percent Percent
Australia 50 30
Austria 42 27
Belgium 39 23
Denmark 58 38
Finland 49 37
France 22 17
Germany 35 22
Hong Kong 58 23
Ireland 46 25
Italy 34 14
Netherlands 56 28
New Zealand 51 31
Norway 53 38
Singapore 56 21
Spain 20 11
South Korea 57 17
Sweden 61 41
Switzerland 43 31
Taiwan 50 19
UK 46 26

By 2001, there were over 2.3 million DSL customers in the United States. Estimates show the market for DSL customers will reach 7.74 million residential customers and 1.83 million business lines, for a total of 9.57 million DSL lines deployed by 2003. High-speed connectivity is a commodity. As service providers adapt their networks and strategies to meet the demand for high-bandwidth services and applications at reduced cost, some are attempting to capture high-bandwidth customers by offering access to key information service providers (e.g., a specific Internet service or digital video provider).

The customers’ key interest in high-bandwidth service includes speeding up large file transfers, viewing high-resolution images and enabling multimedia applications such as streaming audio and video. The attempt of service providers to restrict access to certain information content providers is likely to divert attention from developing cost-effective high-speed networks and create opportunities for other providers to offer access to other information content providers.

Early adopters of broadband services are affluent. Of broadband users, 21 percent of these households have annual incomes over $100,000. Broadband users are also twice as likely to be active online purchasers when compared to low-speed users.* Additionally, most of these users also have cellular phones, PDAs, and other handheld devices such as digital cameras and music players.

In a recent survey of online consumers, 80 percent stated that they would pay approximately $25 per month for broadband access alone; 26 percent of those said that they would pay $50 or $60 for a package of broadband-enabled applications (including premium quality downloadable music or video files) in addition to the cost of broadband access.

As cellular technology connects phones, PDAs, and other devices across networks, wide area networks (WAN), local area networks (LAN) and the personal area network (PAN), we see the emergence of IEEE’s 802.11B as the de facto wireless WAN standard. As major corporations including Cisco, Compaq, Dell, and others are designing their products for faster cable-free network setup in offices and corporation campuses, we believe that the home market will also adapt, according to a study conducted by the Aberdeen Group, the home network market, including both wireless and wired initiatives will hit $13 billion by 2005.

Top International Wireless Markets 2000

NUMBER MARKET SUBSCRIBERS PENETRATION (%)
1 USA 93,650,000 34
2 Japan 57,950,000 43.36
3 China 46,500,000 3.7
4 Italy 31,118,321 52.2
5 South Korea 27,500,000 53.3
6 United Kingdom 25,517,000 42.9
7 Germany 25,000,000 30.2
8 France 21,082,000 35.5
9 Spain 16,370,150 41
10 Brazil 14,438,963 8.3
11 Taiwan 11,452,541 51.6
12 Turkey 9,234,976 14
13 Mexico 8,694,500 8.6
14 Australia 7,824,560 40.8
15 Netherlands 7,139,000 44.9
16 Canada 7,000,000 22.4
17 Sweden 5,353,000 60
18 South Africa 5,300,000 12.2
19 Portugal 4,804,671 47.8
20 Argentina 4,683,522 12.7

NUMBER COMPANY SUBSCRIBERS NUMBER OF MARKETS TECHNOLOGY
1 AT&T Wireless 11 million 105 TDMA
2 SBC Wireless 10.3 million 167 TDMA
3 Vodafone Air touch 9 million 150 TDMA/CDMA
4 Bell Atlantic Mobile 8 million 75 CDMA
5 GTE Wireless 5 million 141 CDMA
6 Alltel 5 million 266 CDMA
7 BellSouth Wireless 4.9 million 93 TDMA/CDMA
8 United States Cellular 2.6 million 139 TDMA
9 Western Wireless 840,000 96 CDMA
10 Century Tel 708,000 44 TDMA
11 Dobson Cellular Systems 661,000 67 TDMA/CDMA
12 Centennial Communications 526,000 31 TDMA/CDMA
13 Price Communications 450,000 16 TDMA
14 Rural Cellular Corp. 260,000 20 TDMA
15 Trito Cellular Partners 210,000 20 TDMA
16 Wireless One Network 180,000 6 TDMA
17 Cellcom Cellular 165,000 8 TDMA
18 Midwest Wireless 160,000 12 TDMA
19 Plateau Wireless 70,000 5 TDMA
20 Bluegrass Cellular 66,000 3 TDMA

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