Significance and usage of broadband

Consumers surveyed in the “Deutschland Online 3” study confirmed the important role that broadband Internet already plays in everyday life in Germany 1. For the younger generation, technology is the main and most important information and entertainment medium. More than half of all respondents agreed strongly or very strongly that broadband usage is synonymous with an innovative lifestyle. This means that accessing the broadband network has become part of our cultural identity.

These views reflect the impact that the information and telecommunications (ICT) industry will have on Germany’s gross domestic product. Experts predict its share will double to around 12% of GDP by the year 2015.

Accessibility is another keyword in this context. The opportunity to be online whenever desired (always on) and access a high bandwidth are quite clearly central to the appeal of this medium. By the year 2010 the average accessible bandwidth of a broadband Internet connection is expected to increase tenfold from the current 1 MBit/s, and by the year 2015 users can expect to have access to an average bandwidth of around 30 MBit/s (Fig. 1).

Figure 1:		Trend in average bandwidth of a broadband Internet connection (BB access) by the year 2015 (broadband experts)

What do consumers use these high bandwidths for? What is the purpose of high-speed connections from their point of view? Traditionally the purpose has been to source information, and this is likely to remain the primary reason for using broadband in the future. In 2005 some 80% of respondents used the Internet to a high or very high degree to keep up to date with news, stock prices, weather and events. By 2010 this usage rate is likely to climb to almost 90%.

Another key reason for using broadband is communication (Fig. 2). The Internet is currently used by around 70 % of respondents to a high or very high degree for communication purposes. This rate will continue to rise by the year 2010. On the other hand, the number of consumers using the Internet for shopping or entertainment purposes to a high or very high extent is still relatively small. But experts expect growth in this area to surge over the next five years. Almost half of respondents predicted they would be using broadband Internet in 2015 for entertainment purposes, such as video and music downloads or online games.

Figure 2:		Purpose of Internet usage in 2005 and 2010 (consumers) 2

The level of consumer interest in broadband communications and particularly entertainment offerings depends on the speed of the Internet connection. The more data transmitted per second, the more applications for using broadband. Higher bandwidths are required for video telephony than for standard Internet telephone services — in other words, higher speed equals more convenience.