Broadband penetration refers to the market share of high-speed internet. Broadband is faster and more efficient than dial-up, making it attractive to low-income subscribers. Broadband penetration grew rapidly but declined in Western nations. Asia has the highest penetration rate, followed by Europe and North America. Competition and better technologies have encouraged broadband growth in Europe and Asia. Some cities offer low-cost or free broadband, but limited provider options in the US have slowed growth.
The term “broadband penetration” refers to how much of the Internet access market that high-speed or broadband Internet has captured. When broadband was first introduced as a way to connect to the Web, many companies confidently expected it to capture the majority of market share, and with good reason. Broadband tends to be faster, more efficient, and less of a hassle than other access methods such as dial-up networking. As online content increases bandwidth usage, broadband allows internet users to load content quickly.
With an increase in affordable technology and competing providers, broadband Internet is accessible for many consumers, who are making the switch after becoming frustrated with slow dial-up connections. Many telecommunications companies also seek to increase their market for broadband by offering it as part of bundled phone, Internet and/or cable services. Combining this with low prices makes broadband attractive to low-income subscribers. According to analysts, in 2010 70 percent of Internet subscribers in Western nations were expected to adopt broadband by 2006.
Broadband penetration grew by leaps and bounds initially after being widely introduced in the early 2000s. In 2004, over half of Internet users in the United States and Great Britain used broadband at home, office, or both places. However, broadband penetration began to decline rapidly in many Western nations after this point, as early adopters had already acquired the technology and older Internet users felt they could not afford or needed it. This often occurs with new technologies that initially capture the public’s imagination and then fade away as it reaches the peak of market saturation.
The area of the world with the highest broadband penetration is Asia, which has bypassed traditional dial-up Internet access in many locations and switched to satellite or DSL broadband services. Europe is next, with the Scandinavian countries having the highest broadband penetration rate. North America follows, with South America and Africa slowly catching up.
In both Europe and Asia, the spread of the broadband market has been encouraged by countries that support multi-company competition and the development of better technologies. In some cities, citywide broadband Internet access is provided at low cost, while others such as San Francisco, California have developed initiatives to provide free broadband to all citizens. In the US, many customers don’t have options when it comes to choosing a broadband provider, which some critics believe has slowed the growth rate for broadband penetration.
Protect your devices with Threat Protection by NordVPN
