Monday, May 4, 2009

Broadband consequences - what do they mean for you?

To address 230 million US internet users and thier demand for Broadband services in 2009, Privately held Operators will invest ~$80B across North American communications networks (roughly 5% of the US GDP, representing more than 3X of the annual investment in the original US Interstate Highway system). With US Broadband penetration (~33%) notably lower than other 1st and 2nd world economies (e.g. 42% in Denmark, Netherlands, 40% in Norway, Switzerland), it's interesting to note that a 10% increase in U.S. broadband penetration could help create 3 million jobs (source: Connected Nation), roughly 60% of those job growth targets identified by Barak Hussein Obama. This same 10% could generate $134 billion in incremental annual economic stimulus, while saving 9 billion vehicle miles (or 3.5 million tons of CO2 emissions). It is clear that VoIP is a potential winner in this environment - U.S. VoIP revenues will grow by 26% to $3.4 billion in 2009, while subscribers will also grow by 23% to 19 million.
With ~60% of US households accessing the internet via Fixed, Mobile and Broadband devices, legacy behaviors will continue to drive domain growth. Low-tech lifestyles (circuit-switched voice traffic, Pedestrian shopping, On site banking, F2F games, analog music and video) are services that will increasingly be found online - if you factor in Social Networking, IM, Browsing and User Generated Content, it seems that demand (in real numbers) for current and emerging broadband technologies will be easy to value for the average consumer.

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