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Japanese Broadband World's Fastest, Cheapest - Iceland Cools off in Global Broadband Penetration Rankings - US Broadband Penetration Grows to 85.9% Among Active Internet Users - November 2007 Bandwidth Report

Summary: Japan leads the world with the fastest and lowest unit cost for broadband, according to recent data from the OECD. Japan enjoys costs per megabit per second over four times lower than that of the US. Iceland cooled off in global broadband penetration rankings falling from third to sixth from Q4 200 to Q2 2007, while the US remained in 15th place overall.

Japan has the fastest broadband speeds and the lowest cost per megabit per second of all countries surveyed, according to recent data from the OECD (see Figures 1-3). Japan enjoys costs per megabit over four times lower than that of the US. Iceland fell three places from third to sixth in global broadband penetration from Q4 2006 to Q2 2007, while the US remained at 15th place (see Figure 4). Ireland led all countries in net growth of broadband penetration per 100 inhabitants (see Figure 5). Meanwhile, in the US broadband penetration grew to 85.91% among active Internet users, up 0.6 percentage points over September 2007.

Japanese Broadband World's Fastest

Japan, France, Korea, Sweden, and New Zealand led all countries surveyed in advertised broadband download speeds (see Figure 1). Japan led all countries with an advertised 93,693 Mbits per second speed, followed by France at 44,157 Mb/s, Korea at 43,301 Mb/s, Sweden 21,423 Mb/s, and New Zealand at 13,595 Mb/s broadband speed. The UK came in 12th at 10,624 Mb/s while the US came in at 14th at 8,860 Mb/sec.

oecd broadband speed by country october 2007

Figure 1: Broadband Speed by Country Oct. 2007
Source: OECD

Finland, Germany, and Switzerland Lead all Countries in Broadband Prices

Finland (31.2 equivalent USD), Germany (32.2), Switzerland (32.7), the UK (33.3), and Denmark (33.6) led all countries in the lowest average prices for broadband service (see Figure 2). The US came in 21st place at $53.1 USD for the average monthly broadband subscription fee. Mexico, Turkey, the Slovak Republic, and the Czech Republic came in with the highest average monthly rates topping out at nearly $89/month for broadband service.

oecd broadband average monthly price by country october 2007

Figure 2: Broadband Average Monthly Price by Country Oct. 2007
Source: OECD

Japan Leads all Countries in Price per Megabit

Japan led all countries surveyed in price per megabit per second at $3.09 equivalent US dollars (see Figure 3). France followed at $3.7, Italy at 4.6, the UK at 5.3, and Korea at about $6 per Mb/sec. The US was 11th at $12.6 per Mb/second. Greece, Mexico, and Turkey topped all countries in price per megabit, with Turkey at $97.4 per megabit/second.

oecd broadband price per megabit per second by country october 2007

Figure 3: Broadband Price per Mb/second by Country - Oct. 2007
Source: OECD

Iceland Cools off in Global Broadband Penetration Rankings

Our April 2007 Bandwidth Report listed Iceland at third place at 29.7 broadband subscribers per 100 inhabitants. While Iceland crept up to 29.8 broadband subscribers per 100 inhabitants, Switzerland, Korea, and Norway moved ahead of Iceland, behind Denmark and the Netherlands (see Figure 4).

oecd broadband penetration versus gdp q2-2007

Figure 4: Broadband Penetration per 100 Inhabitants Q2-2007
Source: OECD

Ireland Leads all Countries in Broadband Growth

Ireland, Germany, Sweden, and Australia led all countries in broadband growth from Q2 2006 to Q2 2007 (see Figure 5). The US (4.21) and the UK (4.52) were above the OECD average of 3.68 additional subscribers per 100 inhabitants over that one year period. Japan, Turkey, Portugal, Hungary, and Mexico came in last in broadband growth from Q2 2007 to Q2 2007.

oecd broadband penetration net increase q2-2006-q2-2007

Figure 5: Broadband Penetration Per 100 Inhabitants Net Increase Q2 2006-Q2 2007
Source: OECD

US Leads all Countries in Broadband Subscribers

The US led all countries surveyed with over 66.2 million subscribers on broadband as of June 2007 (see Figure 6). Japan had less than half the broadband subscribers of the US with 27.2 million on broadband, followed by Germany at 17.5 million, Korea at 14.4 million, and the UK at 14.4 million subscribers.

oecd broadband subscribers by country q2-2007

Figure 6: Broadband Subscribers by Country Q2 2007
Source: OECD

Home Connectivity in the US

US broadband penetration grew to 85.91% among active Internet users in October 2007. Narrowband users connecting at 56Kbps or less now make up 14.09% of active Internet users, down 0.6 percentage points from 14.69% in September 2007 (see Figure 7).

Web Connection Speed Trends October 2007 - U.S. home users

Figure 7: Web Connection Speed Trends - Home Users (US)
Source: Nielsen//NetRatings

Broadband Growth Trends in the US

In October 2007, broadband penetration in US homes grew 0.6 percentage points to 85.91%, up from 84.31% in Septemer. This increase of 0.6 points is below the average increase in broadband of 0.75 points per month over the last six months (see Figure 8).

Broadband Adoption Growth Trend - October 2007 - U.S. home users

Figure 8. Broadband Adoption Growth Trend - Home Users (US)
Extrapolated from Nielsen//NetRatings data

Work Connectivity

As of October 2007, 94.64% of US workers connected to the Internet with broadband, up 0.45 percentage points from the 94.19% share in September. At work 5.36% connect at 56Kbps or less (see Figure 9).

Web Connection Speed Trends - October 2007 - U.S. work users

Figure 9: Web Connection Speed Trends - Work Users (US)
Source: Nielsen//NetRatings

Further Reading

OECD Broadband Portal
Provided the statics for the worldwide broadband statistics. Nov. 6, 2007.
Nielsen//NetRatings
Provided the US broadband penetration data for active Internet users for the Bandwidth Report.

By website optimization on 19 Nov 2007 AM

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