Internet Use and Broadband Adoption in Taiwan: An Overview Report
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1 Internet Use and Broadband Adoption in : An Overview Report January 2004 APIRA conference August 19-20, 2004 Dr. Te-Hsin Liang Associate Professor Dep t of Statistics Information Science Director, Survey & Statistics Analysis Research &Consultancy Center, Fu Jen Catholic University Dr. Yu-li Liu Professor Dep t of Radio and TV National Chengchi University Survey conducted by Survey & Statistics Analysis Research & Consultancy Center, Fu Jen Catholic University, commissioned by Network Information Center
2 Outline 1. Methodology 2. Estimated Number and Percentage of Internet Users 3. Estimated Number and Percentage of Broadband Users 4. Analysis on the Behaviors of Broadband Users
3 Methodology Survey Time Sample Number Target Population Jan. 6 to Feb. 8, 2004 Valid samples 3,197 age 12 or above 23 Cities/Counties in with 6,456,662 households Survey Computer Assisted Telephone Interviewing Survey Sampling Method Stratified simple random sampling. he sample is based upon a total of 19,009,963 residents. Estimate Method
4 Estimated Number and Percentage of Internet Users Internet Users 11,598,787 12,640, % 66.49% 1,041,358 Age Under 12 Age 12 or Above Age Internet Users 1,041,358 11,598,787 12,640,145
5 Estimated Number and Percentage of Internet Users (continued) Growth of Internet Users in % Age 15 or above Age 15 or above Age Age Age Jan 2001 Sept 2002 Mar 2003 Jul 2003 Jan 2004 MOTC Statistics TWNIC MOTC Statistics TWNIC TWNIC Source:TWNIC Survey, & The Statistics Department of the Ministry of Transportation & Communication *Unit:Million
6 Percentages of Internet Users in Different Areas of *Digits in the parenthesis is the Sampling Error: % 74.64% 71.72% 63.06% 58.55% 51.91% 47.45% 66.21% 56.56% (±5.78) (±7.54) (±3.06) (±3.68) (±3.48) (±6.73) (±2.70) (±3.16) Taipei City Kaohsiung City Northern Central Sout hern Eastern Northern (includes Taipei City) Sout hern (includes Kaohsiung City)
7 Percentages of Broadband Users in Different Areas of *Digits in the parenthesis is the Sampling Error: % 60.74% 52.64% 50.20% 45.31% 38.62% 38.12% 53.07% 41.92% (±5.78) (±7.54) (±3.06) (±3.68) (±3.48) (±6.73) (±2.70) (±3.16) Taipei City Kaohsiung City Northern Central Sout hern Eastern Northern (includes Taipei City) Sout hern (includes Kaohsiung City)
8 Percentages of Households in with Internet Access Households without Internet Access 28.42% 71.58% Households with Internet Access 71.58% *Sampling Error:±1.73%(Confidence level 95%)
9 Percentages of Households with Internet Access in Different Areas in *Digits in the parenthesis is the Sampling Error: % 78.36% 80.73% 74.41% 72.19% 61.94% 75.56% 66.80% 48.11% (±5.78) (±7.54) (±3.06) (±3.68) (±3.48) (±6.73) (±2.70) (±3.16) Taipei City Kaohsiung City Northern Central Sout hern Eastern Northern (includes Taipei City) Sout hern (includes Kaohsiung City)
10 Percentages of Household of Broadband Subscribers in Different Areas in *Digits in the parenthesis is the Sampling Error: % 55.51% 54.13% 55.28% 51.04% 43.92% 55.35% 46.56% 28.30% (±5.78) (±7.54) (±3.06) (±3.68) (±3.48) (±6.73) (±2.70) (±3.16) Taipei City Kaohsiung City Northern Central Sout hern Eastern Northern (includes Taipei City) Sout hern (includes Kaohsiung City)
11 Analysis on the Behaviors of Broadband Users Gender Difference in Broadband Users 51.66% 43.25% 51.66% 43.25% Male Female
12 Percentages of Broadband Users in Different Age Groups 67.08% 77.55% 81.55% 63.78% Age % 33.15% Age % Age Age Age Age Age Age Age 56 or above Age56+
13 Percentages of Broadband Users in Different Areas of *Digits in the parenthesis is the Sampling Error: % 60.74% 52.64% 50.20% 45.31% 38.62% 38.12% 53.07% 41.92% (±5.78) (±7.54) (±3.06) (±3.68) (±3.48) (±6.73) (±2.70) (±3.16) Taipei City Kaohsiung City Northern Central Sout hern Eastern Northern (includes Taipei City) Sout hern (includes Kaohsiung City)
14 Venues where Broadband Users Get Online 88.41% At home at work places 21.59% at school 88.41% 28.15% At internet caf e 21.59% 16.65% 3.03% 0.28% 0.25% 0.71% At home At work places At school Internet café Library At relatives' or friends' Coffee shops, restaurants... Other places
15 Amount of Time Broadband Users Spent Online 6.40% 11.36% 21.35% 20.75% 11.06% 6.65% 42.10% Spend more than 1 hour & Less than 3 hours on line 6.37% 3.64% 1.33% 2.92% 2.20% 1.89% 2.60% 0.77% 0.20%0.24% 0.28% Less than 1/2 hr 1/2-1 hr 1-2 hrs 2-3 hrs 3-4 hrs 4-5 hrs 5-6 hrs 6-7 hrs 7-8 hrs 8-9 hrs hrs hrs hrs hrs hrs 16 and above Uncertain
16 Time for Using Broadband (Multiple Choices) 37.14% at 9pm-10pm 32.31% at 10pm-11pm 36.57% at 8pm-9pm 36.57% 37.14% 32.31% 26.67% 21.25% 5.84% 1.34% 0.88% 15.74% 12.45% 12.86% 10.25% 11.10% 14.11% 15.43% 13.72% 13.65% 11.80% 9.51% 6.31% 3.75% 1.18% 0.76% 2.02% 6:00~6:59 8:00~8:59 10:00~10:59 12:00~12:59 14:00~14:59 16:00~16:59 18:00~18:59 20:00~20:59 22:00~22:59 0:00~0:59 2:00~2:59 4:00~4:59
17 Purposes for Individual Broadband Users 61.80% 58.75% Browse web pages ( 61.80%) (58.75%) Online game(20.83%) 20.83% 13.48% 10.40% 7.88% 5.79% 3.93% 2.92% 2.91% 2.20% 0.92% 1.78% 0.36% 0.28% 0.14% 0.69% 0.92% 0.30% 0.27% WWW Online Game Chat (MSN ICQ) Information Searching Downloading Software Downloading Music Uploading Data Online Shopping Online Radio or Music Online Banking Newsgroups FTP or P2P BBS Long-distance and Online Learning Website Maintenance Video Conferencing Watching Video Online Watching TV Online Others
18 Factors Considered in Choosing ISP 29.38% 26.62% 18.50% 15.31% 13.65% Cost (Price) (29.38%) Speed (26.62%) 8.51% 6.09% 3.07% 3.36% 2.65% 1.10% 0.81% 0.75% 0.53% 0.23% 10.88% 2.85% Cost Speed Stability Friends' Recommendation ISP Reputation Promotion Random Choice Group Choice Rich in Value Added Services Influenced by the customer satisfaction survey Package from Cable Service The only ISP available Opt for a New ISP Providing fixed IP Providing dedicated bandwidth Unknown Others
19 Preferred Options for Broadband 68.91% ADSL 2.86% 4.69% 1.96% 8.35% 13.22% ADSL Cable Modem Community Network Leased Line Others Undecided
20 Analysis on the Behaviors of Broadband Users (continued) Among the ADSL subscribers, 74.23% of them subscribe from Hinet. Supplier Analysis for ADSL Subscribers 74.23% HINET 74.23% 3.79% 2.73% 2.33% 1.38% 1.18% 0.72% 10.62% 3.04% Hinet Seednet GigaMedia So-Net TFN APOL sparq Unknown Others
21 Supplier Analysis for Cable Modem Subscribers 68.33% Eastern Broadband Telecom 68.33% 15.03% 16.33% 0% 0.31% Eastern Broadband Telecom GigaMedia SeedNet Others Unknown
22 Average Expenditures on Broadband 23.52% 25.99% 24.14% 11.31% 5.82% 4.28% 1.13% 0.57% 0.87% 1.74% 0.06% 0.57% Free NTD1~250 NTD251~500 NTD501~750 NTD751~1,000 NTD1,001~1,250 NTD1,251~1,500 NTD1,501~1,750 NTD1,751~2,000 NTD2,001 and above Unknown Others NTD (25-35 USD) 25.99% NTD (35-40 USD) 23.52% NTD (25-40 USD) 49.51%
23 Reasonable Range for Broadband Expenditures NTD (15-25 USD) 14.56% NTD (25-35 USD) 13.63% NTD (15-35 USD) 28.19% 46.47% 3.16% 8.86% 14.56% 13.63% 7.22% 1.67% 0.42% 2.47% 0.66% 0.87% NTD1~250 NTD251~500 NTD501~750 NTD751~1,000 NTD1,001~1,250 NTD1,251~1,500 NTD1,501~1,750 NTD1,751~2,000 NTD2,001 and above Others Unknown
24 2.11% Satisfaction with ISP 55.17% 57.28% Satisfied with ISP 26.77% 9.29% 0.36% 6.30% Satisfied Unsatisfied Very unsatisfied Hard to say (No opinion) Unknown Very satisfied
25 Problems for Using Broadband 24.63% 21.55% 16.15% Speed is too slow (30.99%) Instable (24.63%) 12.15% 11.33% 6.99% 3.52% 1.10% 2.25% 3.21% 2.27% 2.25% 1.45% 1.24% 0.70% 0.88% Slow Download Speed Instability, Poor Connection Quality Traffic Jam during Peak Hours Worries over Virus Slow Upload Speed Too Many Junk Information Problems with Network Security Slow Connection to Foreign Websites Difficulty with Dial-Up or Computer Setup Too Expensive Poor Web Content Difficulty with Mutiple Users Setup Limitations in Family Poor Customer Service from ISP Others
26 Conclusion (1) There is a growing number of Internet users in Tawian Internet penetration: 66.49% Broadband penetration: 47.52% ADSL penetration: 68.99% (among the internet users) Hinet: 74.23% (among ADSL users) Geographical penetration: Eastern is the lowest
27 Conclusion (2) Male, age 16-25, living in northern tend to be more likely online On-line time: 1-3 hours per day, peak time from 8 pm to 11 pm Popular internet usage: web browsing and Connection location: at home and work place/school Factors of choosing ISP: cost (price) and speed Satisfaction with ISP: 57.28%
28 Key Factors for Broadband Telecom Liberalization: 3 new fixed networks, more ISPs Chunghua Telecom chairman s agenda Severe Competition Promotion & computer exhibition Price decreased Bundling strategy Dial-up fee and one-way cable modem is time-sensitive & price-sensitive More internet users
29 Government Policy 1 1. Telecom Liberalization/open telecom market: open up 3 fixed networks, more ISPs 2. Encourage competition (interconnection, unbundling, co-location) 3. Revise Telecom Act foreign ownership rule (20%->49%; 60% indirect shares) for Type I, Interconnection (transparency) 4. Public land and buildings: used on a priority basis for establishment of conduit infrastructure
30 Government Policy (2) 5. Assistance in Access to Rights of Way --stipulate regulations of the conduit sharing for the local gov t to adopt. --If necessary, the MOTC will force CHT to lease its local loops to other fixed network operators. 6. Set deployment goal: 6 million broadband subscribers by 2007 (Challenge 2008)
31 Challenge 2008 :The Six-year National Development Plan Released in May projects The e- project launched at the end of 2001 was incorporated into it. --strive for next-generation broadband networks such as IPv6 and wireless LAN --deploy broadband networks ubiquitously --promote broadband internet usage
32 Challenge 2008 Government goals 6 million broadband subscribers by % of population uses Internet 70% of Internet subscribers use broadband 1250 Gbps national backbone capacity 250 Gbps international backbone capacity Issue more fix-line licenses in March 2003 Allocate NTD10.7 billion budget over six years to develop digital content industries
33 Industry 1. Market competition 2. HiNet agenda (Chunghua Telecom chairman s agenda): 1 million subscribers in 2001, 2 million in 2002 (strategy:branding, reliability) 3. Promotion, price competition, flexible rate 4. Computer exhibition 5. Voice revenue does not have too much room, work on data revenue broadband 6. Cost down 7. CLECs Promote broadband to small and medium business and hi-building
34 Consumer 1. Dial-up users have to pay phone line fees 2. Cannot stand for the speed of dial-up 3. Attracted by the promotion and the computer exhibition 4. Price-sensitive 5. Internet cafe
35 Broadband Obstacles Wired broadband: 1. DSL: a. Last mile b. Local government 2. Cable Modem: a. economy of scale b. upgrade to 2-way is expensive c. network quality is not stable
36 The End Thank you
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