Wednesday, October 31, 2012

The Lure of the Internet - Blake Manson

In mature markets, internet access is readily available for just about everyone. High Speed internet has touched the lives of almost everyone. Using the internet has become as familiar as making a phone call, or turning on the TV.

In many emerging markets, internet access remains in the hands of businesses and higher income individuals predominantly in urban areas. Even in areas where all the conditions do not line up exactly for internet, there is no reason to believe that accessing the internet on a daily basis will not become as common in these markets as it is elsewhere.

There are 1.5 billion internet users globally, but more than 4 billion mobile phone users. There is clearly a massive untapped resource of people who are already familiar with basic communications technology, but lack the access to internet.

There are already signs of the incredible growth potential showing up in emerging markets.
"I have seen mobile access to the internet become a widespread idea flowing through the country side of Guatemala faster than the mudslides following a tropical storm. 3G networks are being accessed now more than ever, and people finding ways to connect to their friends and family more than ever." - Alex Castillo, Guatemala, Oct 2012.

Uses of the internet in the Rural Guatemalan Countryside.  
Viewing and sending pictures - 60%
Friendly conversation - 30%
Business - 2.2%
News and current events - 1.2%
Fact check -  .6%
Other - 6%

In other parts of the world, such as Chile, mobile internet connections jumped by 315% in 2008.
An April 2009 report called Pyramid Research, predicts that mobile broadband adoption in Africa and the Middle East will grow faster than the global average over the next five years, with the subscriber total increasing at a CAGR (compounded annual growth rate) of 33% to reach 32.2 million by 2014.


 According to the ITU World Telecommunication Database:
  • by end 2011, there were more than 1 billion mobile‐broadband subscriptions worldwide.
  • In 2011, 144 million mobile‐broadband subscriptions were added in the BRICS (Brazil, the
    Russian Federation, India, China and South Africa), accounting for 45% of the world’s total
    subscriptions added in 2011.
  • By end 2011, there were more mobile‐broadband subscriptions than inhabitants in the
    Republic of Korea and Singapore. In Japan and Sweden, active mobile‐broadband penetration
    surpassed 90% by end 2011.
  • Total mobile‐cellular subscriptions reached almost 6 billion by end 2011, corresponding to a
    global penetration of 86%.
  • Growth was driven by developing countries, which accounted for more than 80% of the 660
    million new mobile‐cellular subscriptions added in 2011.
  • In 2011, 142 million mobile‐cellular subscriptions were added in India, twice as many as in the
    whole Africa, and more than in the Arab States, CIS and Europe together.
  • By end 2011, there were 105 countries with more mobile‐cellular subscriptions than
    inhabitants, including African countries such as Botswana, Gabon, Namibia, Seychelles and
    South Africa.
A minority of the global population uses the internet today. Yet the potential for massive penetration for this technology offers the greatest opportunity for the billions of people who do not yet use this wonder of the information era. Internet services can help people to build better lives and to support nations as they create economic prosperity. The pinpoint idea that will unlock this opportunity is affordable access. Innovation in technology, business, and policy making can make affordable access a reality for even more people further and further down the income pyramid.

Ultimately, nobody, whatever their income, will need to be deprived of the benefits of the internet, and its ability to use information to improve their lives.



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