Its Deployment and Policy
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1 A Comparative Study on Broadband in Asia Its Deployment and Policy April 22, 2002 Izumi Aizu Asia Network Research GLOCOM April 2002 Broadband in Asia 1
2 Why East Asia is leading Broadband? Possible factors behind Internet and Broadband penetration: Economic Development State ICT Policy Social or institutional factors April 2002 Broadband in Asia 2
3 Does ICT policy make a difference? State ICT Policy Target policy Liberalization of Telecom market Incubation of Entrepreneurs Social or institutional factors Culture Politics, Historical context Mentality April 2002 Broadband in Asia 3
4 Internet Penetration in East Asia (2002) Country Hong Kong USA Korea Singapore Japan Taiwan Users (1000) 4, ,140 24,380 2,260 49,720 7,820 Penetration Per Population (%) Source: NUA Internet Survey ( April 2002 Broadband in Asia 4
5 Internet Penetration in Nordic Countries (2002) Country Users (1000) Penetration Per Population (%) Date Sweden 5, Feb. 02 Denmark 3, Feb. 02 Iceland Dec. 00 Norway 2, Jul. 01 Source: NUA Internet Survey ( April 2002 Broadband in Asia 5
6 Net Penetration in Asia (2000) Source: NUA Internet Survey April 2002 Broadband in Asia 6
7 Net Penetration and GDP (2000) Penetration No.11 out of 23 Per capita GDP April 2002 Broadband in Asia 7
8 Internet penetration and Economic Development Yes, there is a positive correlation between the two How about Broadband? April 2002 Broadband in Asia 8
9 Broadband Penetration and Economic Development Why Broadband exploded in Korea but not in Singapore or Japan? There seems to be less correlation between broadband penetration and level of economy Did state policy play a major role? April 2002 Broadband in Asia 9
10 Broadband Penetration in East Asia (Feb 02) 20.0% 16.7% 15.0% 10.0% 9.0% 5.0% 5.2% 4.1% 3.4% 2.3% 2.2% 0.0% Korea April 2002 Broadband in Asia 10 Hong Kong Taiwan USA Singapore EU (mean) Source: Government agencies in each country Japan
11 Little correlation between Broadband and Economy BB Penetration 20.0% 15.0% 10.0% 5.0% Korea Hong Kong Taiwan USA Singapore 0.0% Japan GDP per capita April 2002 Broadband in Asia 11
12 Korea: Internet Explosion in 98, Broadband in 00 Internet 10 IMF!! Economic Crisis Broadband April 2002 Broadband in Asia 12
13 Broadband Users in Korea ( 98 01) 8,000,000 7,500,000 6,000,000 4,000,000 4,000,000 2,000, , ,000 Source: Ministry of Information and Communication, Korea April 2002 Broadband in Asia 13
14 PC Bang, a great boom K 99:12K 00 20K 40K? IMF unemployed workers started Others followed From Game Center to house-wives and businessmen Functioned as the Broadband showroom April 2002 Broadband in Asia 14
15 Online Game triggered LINAGE: 4Million Subscribers, 100,000 simultaneous users Nintendo, PS2 restricted to import Cultural difference MUD was very popular in 80s April 2002 Broadband in Asia 15
16 Web Lifestyle in place Net anywhere: 20,000 or more, just like 7/11, changing people s lifestyles April 2002 Broadband in Asia 16
17 Is Content the King? Internet Broadcasting starting to charge: $0.5 per program for popular TV dramas April 2002 Broadband in Asia Source : MIC 17
18 Positive Spiral in Korea April 2002 Broadband in Asia 18
19 Singapore: Learning from Singapore ONE SingaporeONE: First National Broadband service to home in the world in 97 Faced early challenges Multimedia or Internet? What is the killer-ap? April 2002 Broadband in Asia 19
20 Singapore Lessons Slow market liberalization Strong monopoly of SingTel State-owned managed competition Users are regarded as passive consumers, unlike Korean netiznes Government dictates ONE Net for everyone : not many networks of networks Tight control on media and contents Private sector tends to wait April 2002 Broadband in Asia 20
21 Conclusion: Lessons learned Korea Singapore Japan Lead role Netizens Government Not clear (market?) Market Leader Entrepreneurs State-owned companies Large Companies (NTT, Sony, Fujitsu, NEC ) Policies Follower Top-down Late, in-between Politics Active citizens, Responsive Govn t Strong Govn t, Weak Citizens Weak citizens, Weak Govn t April 2002 Broadband in Asia 21
22 Thank you & See you online! Izumi Aizu Asia Network Research GLOCOM April 2002 Broadband in Asia 22
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