What is 'Broadband'?
The definition of what 'Broadband IP' constitutes is fairly open to interpretation. While there are numerical definitions of what a 'Broadband' connection is, these numbers vary depending on the operator (and what it wants to advertise) and the nature of the service. As an example if you are in an IM text chat session with your friend and not exchanging rich media, does it really matter if you are on a 44kbps link or a 3mpbs link? On the other hand, if you were in a Skype audio/video chat with a colleague, you will certainly feel the difference between a 44kbps link (choppy voice/video) and a 3mpbs link (smooth video and audio). Therefore, the definition of 'Broadband' over IP is closely tied to the nature of the service.
Having said that, for the scope of this paper, let us assume that broadband is any data service that offers a data rate of higher than 56kbps. Practically, most wireline broadband providers start at a minimal 'broadband' rate of 128kbps/256kbps. While early versions of second generation wireless technologies such as 1xRTT and 1xEVDO offer lower data rates, it is a safe assumption that majority of 'broadband' usage is above 128kbps.
Growth of Broadband
The success of a service depends largely on two factors:
- Customer need for the service
- Quality of the service
In some cases, the first factor is so important that users are willing to compromise on quality (the 2nd factor). The proliferation of cell-phones worldwide, with dropped calls and jittery voice is a good example of a service where the uniqueness (mobility) of offering overshadowed the quality concerns. Having said that, cell phone coverage has significantly evolved over the years, since eventually, consumers will expect 'acceptable' quality
Therefore, it is important to analyze the growth of Broadband before we can discuss the relevance of the services.
WebsiteOptimization has some interesting data on Broadband Growth, where they depict that in USA, in 2000, the total percent of 'dial-up' users within the 'Internet connected population' was 74%, while in 2006, this rate dropped down to 36% (in other words broadband users are now 64% of the total Internet population). In terms of the proliferation of Internet in countries,
InternetWorldStats reports that the number of Internet users in USA is currently at 68.6% of the U.S. population while world wide, the Internet users are at 16% of the total world population, up from 5% in 2000.
The relevance of Broadband penetration is a function of the Internet penetration of the region in question as well as the market segment within that region. As an example, Asia's overall Internet usage growth since 2000 is over 210%, EU is 180%, and North America is 110% (
source).
In short this reveals that:
- Diverse regions will have different growth numbers for Internet usage (a function of the economy amongst other factors). However, each region has a very high growth rate which implies that the rate at which Internet penetration is increasing is very high.
- As the Internet penetration grows, it is expected that the percent of broadband users within the Internet users will also substantially grow (as shown above by individual statistics in the U.S. as one region example) due to the fact that broadband rates are coming down and there are continuous technical advancements and innovations for delivering broadband to the last mile (more on this later).
- Finally, from an innovative service deployment perspective, it also tells us that the penetration of broadband usage within the healthy Internet growth worldwide means the 'last mile access' (from the provider to the user) is capable of delivering media rich services. After all, even if the network is connected via high-speed fibers, if the connection to the user is bandwidth restricted, then this severely limits the usability of the Internet for high speed data services from a user perspective.