Monday, February 25, 2008

Broadband Penetration: How You Count Makes a Difference

Comparing broadband penetration across country boundaries is a tricky matter. It makes most sense to measure some services or products, such as cable TV, broadband access, TVs, HDTV, IPTV or telephone lines, on a "per household" basis, since that is how the service tends to be consumed.

Other services or products, such as mobile phones, MP3 players, Skype, smart phones or notebook PCs, might more accurately be counted on a "per user" basis.

The difference in broadband penetration, for example, can vary dramatically by the size of a household. In countries where households tend to be larger, for example, "per capita" and "per household" penetration will show a weaker correlation. Countries with lower household size will show a higher correlation between the two measures.

The latest ECTA data shows broadband penetration "per capita." So where we might be used to seeing "household" penetration figures in the 50-percent range, counting on a per-capita basis leads to penetration in the 15 to 35 percent range.

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