Wireless and Broadband

eMarketer: Australia Playing Broadband Catch-Up

High-speed Internet has arrived in Asia, but Australia continues to wallow in the dial-up world

May 03, 2005 -- NEW YORK, NY -- The speed of light is 670 million miles per hour. This is the speed at which digital data is traveling in some of the leading broadband countries in Asia. While most Internet users in Australia are glad about their 1Mbps Internet connection, Internet users in Japan, South Korea, and even China are beginning to 'ride the light' of optical fiber. Ultra high-speed Internet has arrived in those countries, but Australia continues wallow in the dial-up world.
That's one of the insights gained in a new eMarketer report Asia Pacific Broadband. According to recent reports by eMarketer, Australia ranked 21st in broadband penetration of households at the end of 2004, out of 30 countries analyzed.

"Australia made some significant broadband strides in 2004 after years lagging behind countries in North America, Europe and Asia," said Ben Macklin, eMarketer's senior broadband analyst. "But compared with some of its Asia-Pacific neighbours, Australia is a broadband backwater," he added.

eMarketer has identified three important success factors common to leading broadband markets worldwide:
# Availability & Choice.
# In all the leading broadband markets not only is broadband widely available, but consumers have a choice of either digital subscriber line (DSL) or an alternative broadband infrastructure such as the cable TV network to access high-speed Internet. (And the same company does not own both networks). Choice leads to competition, which leads to price reductions and service innovation. Price:
# In all the leading broadband markets, a 1 Mbps connection is widely available for less than $US30 per month. This is the price point at which broadband adoption has taken off in most markets. Government support:
The government has played an important role in the leading broadband markets by ensuring regulations are in place to foster competition and to encourage new entrants. In some markets such as South Korea, the government has actually invested heavily in infrastructure. Forcing the former monopoly telecom operator to unbundle the local loop is also an important regulatory step in fostering competition. Japan and more recently France are testament to the value of this policy.

Geographic, social and economic factors are also important in the provision and adoption of broadband but these factors have not proved to be the common denominator for continued broadband growth. Canada, for example, is a geographically large country with approximately 79% of its population living in urban centers, yet it ranks 4th in the world in broadband penetration of households.

To purchase Asia Pacific Broadband, visit eMarketer.

About eMarketer

eMarketer is "the First Place to Look" for market research information related to e-business, online marketing and emerging technologies. eMarketer aggregates and analyzes e-business research from over 1,700 sources and brings it together in one place. This research is presented in analyst reports and the "eStat Database" the most comprehensive compilation of up-to-date e-business and online marketing statistics in the world. For more information, visit eMarketer ( http://www.emarketer.com/ ).

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