Friday, December 14, 2012

Global Internet Users Doubled in 6 Years

Developing nations will become the focus of broadband growth over the next decade or two, building on a substantial amount of growth since about 2005.

By the end of 2011 2.3 billion people (around a third the world’s population) accessed the internet globally, almost double the 1.2 billion figure recorded in 2006, according to Ofcom.

Over this period growth in internet use was fastest among developing countries, and by 2011 62 percent of Internet users were located in developing countries, an increase from 44 percent in 2006.

And though Brazil, Russia, India, China and South Africa have been leading economic and communications adoption growth for much of the past decade, it now appears that those nations are reaching maturity, and that growth of communications services will be lead by a new list of nations in the emerging markets.

In significant part, that expansion will be driven by economic growth of middle classes most everywhere in the developing world over the next 15-20 years, according to the National Intelligence Council.

India, China and the rest of Asia provide important examples, as those regions will far outstrip the share of middle class consumption in the United States, Japan and European Union, for example.

Note the dramatic increase in economic growth the Council expects will happen between now and 2030. It took Britain 155 years to double gross domestic product per capita, The United States and Germany took between 30 and 60 years to do so.

India and China are doing this at a scale and pace  not seen before: 100 times the people than Britain and yet a doubling of GDP in one tenth the time. By 2030 Asia will be well on its way to returning to being the world’s powerhouse, just as it was before 1500, NIC analysts say.

IDC, for example,  predicts that emerging markets will contribute for 53 percent of 2012’s global information and communications technology growth.

And a poll of 675 global IT and business professionals suggests Indonesia, Vietnam, Qatar and Myanmar are the countries to lead that growth. Regionally, Asia-Pacific (exclusive of China and India) was cited by compared to 61 percent of survey respondents as the region most likely to lead revenue growth.

Notably, just five percent of respondents chose Brazil, Russia, India, China or South Africa as among the nations having the strongest growth, though the so-called BRICS nations have been at the top of global growth lists for some years.

In Indonesia, for example, there are around 55 million internet users. But that’s just a tiny fraction (22 percent) of its 245 million population. But growth is going to be rapid. The number of internet users grew 29 percent in the most recent year.

Predictions point to 76 million users by 2015. Perhaps ironically, the majority of Internet users are accessing the web while on the go, and not from a desk. While mobile penetration is at 54 percent, PC penetration is just five percent.

In Vietnam, 2012 information technology spending will have increased by 19 percent, IDC says.
By 2015, about 45 percent of the population will be using the Internet by 2015, up from about 30 percent in 2012.

IDC is expects 15 percent year-over-year growth of information technology and communications spending in Myanmar in 2012. Internet usage is quite low, probably in low single digits, while mobile penetration rates likely are similar.

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