SURVEY ON BROADBAND AND WIRELESS USAGE IN SINGAPORE 2002

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1 SURVEY ON BROADBAND AND WIRELESS USAGE IN SINGAPORE 2002 Summary Report Page 1 of 23

2 Infocomm Development Authority of Singapore 8 Temasek Boulevard #14-00 Suntec Tower Three Singapore Republic of Singapore Tel: (65) Fax: (65) Website: Copyright 2003 IDA All rights reserved. No part of this material may be stored in a retrieval system, transmitted, or reproduced in any way, including but not limited to photocopy, photograph, magnetic or other record, without the prior agreement and written permission of the Infocomm Development Authority of Singapore. Notwithstanding the above, part or parts of this publication may be used with the proper acknowledgement of its source without having to first obtain the prior agreement and written permission of the Infocomm Development Authority of Singapore. Page 2 of 23

3 Table of Contents Executive Summary...5 Introduction...7 Survey Design...7 Survey Methodology...7 Sample Distribution...8 Broadband Usage in Singapore...10 Definition of Broadband User...10 Incidence of Broadband Users in Singapore...10 Profiles of Broadband Users...11 Broadband Usage By Location...11 Broadband Usage By Location (Year-on-year Growth)...13 Types of Connection Used...14 Frequency & Intensity of Broadband Usage...15 Frequently Used Applications/Services by Broadband Users...16 Price that Broadband users are willing to pay for Broadband Applications / Services...18 Wireless Usage in Singapore...19 Mobile Phone Subscribers...19 Frequently Used Wireless Applications/ Services...19 Mobile Connectivity for High-Intensity Work...21 Telecommuting...21 Applications / Services Used by Telecommuters...21 Benefits of Telecommuting...21 Wireless LAN Access at Public Places...22 Preferred Payment Methods for Wireless LAN Access at Public Places 23 Page 3 of 23

4 List of Tables Table 1. Distribution of Survey Sample (n =2,951)...8 Table 2. Distribution of Survey Population (N = 2,938,000)...9 Table 3. Types of Connection defined as Broadband Tools...10 Table 4. Profiles of Broadband Users...11 Table 5. Locations where Broadband Usage were accessed...12 Table 6. Locations where Broadband Usage were accessed (Year-on-year growth)...13 Table 7. Cumulative Percentile of Broadband Users and the Number of Hours spent per week using Broadband...15 Table 8. Types of Applications/ Services frequently used by Broadband Users...16 Table 9. Cumulative Percentile of Broadband Users that are willing to pay for Broadband Applications / Services at various prices...18 Table 10. Types of Wireless Applications/ Services frequently used...20 Table 11. Types of Applications/ Services used by Telecommuters...21 Table 12. Benefits Derived from Telecommuting...22 Table 13. Preferred Public Places for Wireless Access...22 Table 14. Preferred Payment Methods for Wireless LAN Access Services at Public Places...23 List of Figures Figure 1. Types of Access Connection Mode Used by Broadband Users..14 Page 4 of 23

5 Executive Summary About 2 in 5 (42% or 1,240,000) Singapore residents aged 10 years and above were broadband users. This represents a year-on-year increase of 30% from Home (53% user incidences) and Office / Workplaces (49%) were the most popular broadband access locations. The majority of broadband users (79%) spent a total of 10 hours or less per week in using broadband. This is equivalent to an average of over an hour of usage daily. The top two applications / services frequently used by broadband users were (94% of users) and online information retrieval / search (54% of users). Other frequently used applications and services included instant messaging (44% of users), online music (40% of users), online chat (38% of users), download / update of software applications (35% of users), online shopping (34% of users), Internet SMS (29% of users), online banking (26% of users) and play online games (21% of users). The majority of broadband users were willing to pay up to S$8 for broadband applications / services such as online video / video streaming, paid live webcast events, online games and children education content. Page 5 of 23

6 About 3 in 4 (76% or 3,200,000) of the total population in Singapore were mobile phone subscribers as of November This represents a year-on-year increase of 14% from November Of the mobile phone subscribers who were interviewed for the survey, 80% indicated that they were SMS users. Apart from using SMS, the top three other wireless applications and services most frequently used by mobile phone subscribers were downloading ring tones / icons (29%), participation in donations (17%), checking information (15%). About 1 in 8 (13% or over 200,000) working Singapore residents were telecommuters. (99%) was the most frequently used application / service used by telecommuters. This is followed by accessing the office Virtual Private Network (21%), video-conferencing (16%) and Internet telephone (13%). About 1 in 8 (13% or 390,000) Singapore residents indicated the need for wireless access to be installed at public places. Among this group, 76% indicated the need for wireless access at cafés and restaurants. This is followed by 74% in shopping malls, 69% in schools and 66% in commercial buildings. Among the group of Singapore residents who indicated the need for wireless access to be installed at public places, 55% preferred to pay for the usage based on connection time per hour. 33% preferred to pay based on a flat month rate, while 12% preferred to pay based on data volume. 1 Fore more information, please refer to under Infocomm Facts & Figures / Statistics / Statistics on Telecom Services. Page 6 of 23

7 Introduction This report provides the salient findings from the Survey on Broadband and Wireless Users in Singapore 2002, which was commissioned to Precision Research Services by Infocomm Development Authority of Singapore (IDA). This survey is an update to the earlier survey conducted by IDA in November 2001, and aims to update information on the broadband market size in Singapore, as well as the demographic and usage profiles of these users. Survey Design Survey Methodology For the 2002 survey, the targeted respondents are Singapore residents 2. For meaningful responses, all respondents must be aged 10 and above. For year-on-year comparisons, appropriate results for the 2002 survey were compared with equivalent data collected over a similar period in the 2001 survey. A sample of 2,951 respondents were interviewed in October / November 2002 based on a random sample of households in Singapore, provided by Department of Statistics through IDA to Precision Research Services. To ensure continued randomness, only the individual who last celebrated his / her birthday in the household, was selected for interview 3. 2 Singapore residents refer to citizens and permanent residents of local residence. 3 A Random Probability Sampling Technique consisting of (1) Selection of Primary Sampling Unit (PSU) by zone, (2) Random Selection of Households from PSU (3) Random Selection of individual based on last celebrated birthday, was adopted. Page 7 of 23

8 The sampling error is estimated to be about +1.8% at 95% confidence level. Recalls were also made on 10% of the completed interviews as part of the due diligence checks to ensure that the actual interviews had been conducted. Sample Distribution To a large extent, the ultimate sample was representative of its target population in terms of the major demographic and socio-economic characteristics as indicated below. Table 1. Distribution of Survey Sample (n =2,951) Male 51% Public Housing.. 84% Female.. 49% Private Housing. 16% years 15% Working... 54% years 22% Housewife.. 18% years 23% Student % years 19% Others.. 12% 50 years and over 21% Chinese. 73% Malay.. 17% Indian/Others 10% Page 8 of 23

9 Table 2. Distribution of Survey Population (N = 2,938,000) Male 50% Public Housing.. 85% Female.. 50% Private Housing 15% years 15% Working... 55% years 14% Non-working.. 40% years 18% Unemployed.. 5% years 18% 50 years and over 22% Chinese. 67% Malay 11% Indian/Others 7% Source: Monthly Digest of Statistics, January 2003, Department of Statistics Page 9 of 23

10 Broadband Usage in Singapore Definition of Broadband User In this report, a broadband user is defined as one who accessed the Internet via any one or more of the following types of connection 4. Table 3. Types of Connection defined as Broadband Tools i ii Asymmetrical Digital Subscriber Line (ADSL) Cable Modem (e.g. Starhub Cable Vision) iii Leased Line/ ATM Link iv Integrated Services Digital Network (ISDN) v Local Area Network (LAN) vi Wireless (LAN) Incidence of Broadband Users in Singapore It was estimated that there was about 2 in 5 (42%) Singapore residents aged 10 years and over who were broadband users. The total number of broadband users in Singapore was estimated to be around 1,240,000 5 Singapore residents aged 10 years and above. This represents a year-onyear increase of 30% from 950,000 broadband users in The incidence of broadband users was pervasive among segments of Singapore residents who are in the age group of 30 to 49 years. It was also 4 Therefore, a person who accessed the Internet only via dial-up modem with access speed not exceeding 56 kbps is not classified as a broadband user under the above definition. 5 Actual: 1,239,800 Page 10 of 23

11 pervasive among the PMEBs 6, students and people with education levels of O certification and above. Profiles of Broadband Users The profile of broadband users resembled, to a large extent, the profile of overall Singapore residents aged 10 years and above in terms of the major demographic, socio-economic attributes (see Table 4). Table 4. Profiles of Broadband Users Male 60% Public Housing.. 76% Female.. 40% Private Housing. 24% years 22% Working... 67% years 25% Housewife.. 4% years 49% Student % 50 years and over 4% Others.. 2% Chinese. 74% Malay.. 18% Indian.. 7% Others. 1% Broadband Usage By Location The highest incidences of broadband usage were found in homes and offices. Specifically, among broadband users, over half (53% or approximately 660,000 Singapore residents aged 10 years and above) used it at homes. Close to half of broadband users use it in offices/ workplace (49% or approximately 610,000 Singapore residents aged 10 6 Professional, Manager, Executive and Businessman Page 11 of 23

12 years and above). Table 5 shows the incidences of broadband usage in homes, offices, schools and other places. Table 5. Locations where Broadband Usage were accessed As % of Singapore residents aged 10 yrs+ As % of Broadband users All broadband users 42% 100% Used broadband services at home. 22% 53% Used broadband services in 21% 49% Office/workplace. Used broadband services in Schools, etc. 8% 18% Used broadband services in other venues (e.g. cyber café, public library) 5% 12% Page 12 of 23

13 Broadband Usage By Location (Year-on-year Growth) Table 6 shows the year-on-year growth rates for broadband usage at homes, in offices, schools and other places. As shown, the incidences of broadband usage in all locations have increased from Table 6. Locations where Broadband Usage were accessed (Year-on-year growth) As % of Broadband users (2001) As % of Broadband users (2002) All broadband users 100% 100% Used broadband services at home. 46% 53% Used broadband services in Office/workplace. 46% 49% Used broadband services in schools, etc. 14% 18% Used broadband services in other venues (e.g. cyber café, public library) 11% 12% Page 13 of 23

14 Types of Connection Used Connection through Local Area Network (LAN) was the most popular type of connection used by broadband users to access the Internet over 2 in 5 (43%) broadband users mentioned so. The next three popular types of connection used by broadband users to access the Internet were ADSL (40%), cable modem (35%) and ISDN (9%). Figure 1 shows the various types of connection used by broadband users. Figure 1. Types of Access Connection Mode Used by Broadband Users 43% 40% 35% 9% 4% 2% LAN ADSL Cable modem ISDN Leased line/ ATM Link Wireless LAN Page 14 of 23

15 Frequency & Intensity of Broadband Usage The majority of broadband users (79%) spent a total of 10 hours or less per week in using broadband. This is equivalent to an average of over an hour of usage daily. Table 7. Cumulative Percentile of Broadband Users and the Number of Hours spent per week using Broadband 5 hours or less per week 48% 10 hours or less per week 79% 20 hours or less per week 92% Over 21 hours per week 8% Page 15 of 23

16 Frequently Used Applications/Services by Broadband Users Table 8 shows the types of applications and services frequently used by broadband users. The top two applications / services frequently used by broadband users were (94% of users) and online information retrieval / search (54% of users). Other frequently used applications and services included instant messaging (44% of users), online music (40% of users), online chat (38% of users), download / update of software applications (35% of users), online shopping (34% of users), Internet SMS (29% of users), online banking (26% of users) and play online games (21% of users). Table 8. Types of Applications/ Services frequently used by Broadband Users 94% Online information retrieval / search 54% Instant Messaging 44% Online Music 40% Online Chat 38% Download / update of software applications 35% Online Shopping 34% Internet SMS 29% Online Banking 26% Play Online Games 21% Page 16 of 23

17 Analysis of the usage patterns of students who used broadband revealed that they used broadband for online music (57% of students), download/ update of software applications (40% of students), access online library services (32% of students), online videos (23% of students), online shopping (20% of students) and e-learning (19% of students). Similar analysis of the usage patterns of working adults who used broadband revealed that they used broadband for online shopping (39% of working adults), online banking (35% of working adults), download/ update of software applications (34% of working adults), online music (34% of working adults) and online Government-related transactions (25% of working adults). Page 17 of 23

18 Price that Broadband users are willing to pay for Broadband Applications / Services Table 9 shows the price that broadband users are willing to pay for broadband applications / services such as online video / video streaming, paid live webcast events, online games and children education content. The majority of broadband users were willing to pay up to S$8 for these broadband applications / services. Table 9. Cumulative Percentile of Broadband Users that are willing to pay for Broadband Applications / Services at various prices Online video / video streaming (Per viewing) Paid live webcast events (Per month) Online games (Per onetime subscription) Children education content (Per viewing) S$4 or less 58% 55% 45% 37% S$6 or less 87% 82% 68% 63% S$8 or less 89% 87% 72% 68% More than S$8 11% 13% 28% 32% Page 18 of 23

19 Wireless Usage in Singapore Mobile Phone Subscribers About 3 in 4 (76% or 3,200,000) of the total population in Singapore were mobile phone subscribers as of November This represents a yearon-year increase of 14% from November Frequently Used Wireless Applications/ Services Of the mobile phone subscribers who were interviewed for the survey, 80% indicated that they were SMS users. Apart from using SMS, the top three other wireless applications and services most frequently used by mobile phone subscribers were downloading ring tones / icons (29%), participation in donations (17%), checking information (15%). According to a joint study released by A. T. Kearney and the University of Cambridge in March 2002, 52% of the mobile phone subscribers in Singapore use SMS more than once a day, as compared to the global average of 23% 8. 7 Fore more information, please refer to under Infocomm Facts & Figures / Statistics / Statistics on Telecom Services. 8 Third A. T. Kearney / Judge Institute of Management Mobinet Index Joint study by A. T. Kearney and University of Cambridge, March Page 19 of 23

20 Table 10. Types of Wireless Applications/ Services frequently used Downloading Ring tones/ Icons 29% Participating in donations 17% Check information (flight, COE, Singapore Pools, horoscope, weather, food reviews, music reviews) 15% Download/Play games 12% Participating in contests 10% Analysis of the usage patterns of students who used wireless revealed that they used wireless to download ring tones/ icons (51% of students), download/ play games (21% of students), participate in donations (20% of students), participate in contests (14% of students) and check information (10% of students). Similar analysis of the usage patterns of working adults who used wireless revealed that they used wireless to download ring tones/ icons (29% of working adults), participate in donations (19% of working adults), check information (16% of working adults), download/ play games (11% of working adults) and participate in contests (10% of working adults). Page 20 of 23

21 Mobile Connectivity for High-Intensity Work Telecommuting It is estimated that about 1 in 8 (13%) working Singapore residents, or over 200,000, were telecommuters. Applications / Services Used by Telecommuters (99%) was the most frequently used application / service used by telecommuters. This is followed by accessing the office Virtual Private Network (21%), video-conferencing (16%) and Internet telephone (13%). Table 11. Types of Applications/ Services used by Telecommuters 99% Office VPN 21% Video-conferencing 16% Internet telephone 13% Benefits of Telecommuting Among the group of Singapore residents who telecommute, 92% indicated that telecommuting increases flexibility, 75% indicated that it reduced travelling time and cost, 72% indicated that it increased productivity with less distraction, 71% indicated that it achieved better balance between work and play and 64% indicated that it extended employment opportunities for people with disabilities. Page 21 of 23

22 Table 12. Benefits Derived from Telecommuting Increase flexibility 92% Reduce travelling time and cost 75% Increase productivity with less distraction 72% Better balance between work and family 71% Extend employment opportunities to people with disabilities 64% Wireless LAN Access at Public Places About 1 in 8 (13% or 390,000) Singapore residents saw the need for wireless LAN access installed at public places. Among this group, 76% indicated the need for wireless LAN access at cafés and restaurants; followed by 74% in shopping malls, 69% in schools and 66% in commercial buildings. Table 13. Preferred Public Places for Wireless Access Café, restaurant 76% Shopping mall 74% School 69% Commercial building 66% Recreation club 58% Country club 53% Hotel 51% Park / Playground 27% Page 22 of 23

23 Preferred Payment Methods for Wireless LAN Access at Public Places Among the group of Singapore residents who indicated the need for wireless LAN access installed at public places, 55% preferred to pay for the usage based on connection time per hour, with majority (83%) willing to pay up to a maximum of S$4 per hour. 33% preferred to pay based on a flat monthly rate with the majority (67%) willing to pay up to S$20 a month. The remaining 12% preferred to pay based on data volume. Table 14. Preferred Payment Methods for Wireless LAN Access Services at Public Places Preferred Payment Method Price Willing to Pay S$4 or less 83% Connection time per hour 55% Over S$4 to S$5 16% Over S$5 to S$6 1% Over S$6 0% S$20 or less 67% Flat monthly rate 33% Over S$20 to S$39 25% Over S$40 to S$59 8% Over S$60 0% Data volume 12% Page 23 of 23

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