WHY BROADBAND MATTERS BROADBAND DIFFUSION AND ADOPTION • International • National • State • Rural WE’RE NUMBER 14! OECD Fixed (wired) broadband subscriptions per 100 inhabitants, by technology, June 2010 40 Fibre/LAN Cable DSL 35 30 OECD average 25 20 15 10 5 0 Source: OECD OECD average 4TH AMONG TOP 7 INDUSTRIALIZED COUNTRIES Fixed (wired) broadband penetration, G7 countries through, June 2010 35 30 Canada, 30.1 United States, 27.1 25 France 20 Germany United Kingdom 15 Canada United States 10 Japan OECD 5 0 S Italy IT’S ALL ABOUT BANDWIDTH Average advertised broadband download speed, by country, kbit/s, October 2009 120 000 Average advertised broadband download speed, kbit/s* 100 000 80 000 60 000 40 000 20 000 Median PRICE Broadband average monthly subscription price, Oct. 2009, USD PPP Greece Italy United Kingdom Ireland Finland Sweden France Switzerland Japan Korea Germany Hungary Belgium Poland Denmark Iceland Netherlands Slovak Republic Spain United States Austria Czech Republic Canada Mexico New Zealand Australia Norway Portugal Luxembourg Turkey 27.72 29.91 30.80 31.33 32.46 32.50 32.70 33.25 35.18 38.50 38.87 39.39 39.75 39.85 40.20 40.63 41.01 46.85 48.34 49.25 50.11 51.64 54.24 56.71 57.06 59.45 62.76 Average Subscription Price, USD, PPP Median 79.53 91.29 135.36 0 20 40 60 80 100 120 140 160 2009 E-READINESS RANKINGS Denmark 1 Sweden 2 Netherlands 3 Norway 4 United States 5 Australia 6 Singapore 7 Hong Kong 8 Canada 9 Finland 10 Economist Intelligence Unit www.eic.com ADOPTION TRENDS WITHIN DEMOGRAPHIC GROUPS, 2009-10 Pew/Internet – August 2010 N UMBER OF B ROADBAND P ROVIDERS (N ATIONAL B ROADBAND M AP ) CONSUMER BROADBAND THERE IS A DIVIDE – IT MATTERS • Unavailable in some communities • Bandwidth limits applications o Education/training o Telework o Telemedicine o eCommerce o Entertainment o eGov services • Brain Drain • Economic development COMMERCIAL BROADBAND BUSINESS, 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 FOR MORE INFORMATION: WWW.C ONNECTING C OMMUNITIES . INFO Southern Rural Development Center