Broadband And Mobile Subscriptions Keep Growing

Investment in telecommunications is the key to broadband growth. Telecommunications investment increased 9% from 2005 to 2007. Investment grew over the past four years, compared to the decline of investment in years past. Despite the growth in 2007, the current global economic downturn may create a dampening effect on investments (Source: OECD).

That being said, there has been a 6% growth every year since 1990 in telecommunications. Economic downturns do not seem to have a heavy impact on markets. Families desire the need to interact socially, and are more capable of doing so as no generation in the past could have imagined.

Mobile and broadband markets have seen the biggest growth. Mobile accounted for 61% of subscriptions, while standard landline phone users dropped to 26% of all subscriptions. This is very significant if you think about it, just a few years ago traditional phone usage was much greater than mobile.

While traditional phone usage is down, broadband is helping phone companies to compensate some on losses. Broadband has seen phenomenal growth, especially when economic times parallel with the Great Depression. From 2005 to 2007, dial-up usage decreased from 40% to 10% of all internet connections worldwide. In Korea for example, if you’re on dial-up, you are 2 out of every 1000!

As the net infrastructure evolves, it is evident that online video will be enjoyed by mass audiences on a scale never before obtainable. Visual experiences are enhanced by broadband, opening up a whole array of options for television and video users. Even though the average American home has a television in almost every room, users are enjoying videos more and more online. Television is not the only means of transportation any longer.

While broadband and mobile subsriptions have risen, prices have fallen on all platforms. Government regulation will play a huge role in future market developments.

Here are the top ten countries that have the most broadband internet users consecutively: China, United States, Japan, Germany, France, United Kingdom, South Korea, Italy, Brazil, and Canada (Wikipedia). And yes, the United States trails against competitors in broadband usage.