Bandwidth Boom - Executive Summary - 06.24.09
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ENTROPY ECONOMICS
> BROADBAND REPORT <
______________________________________________________________________________________________________________________ GLOBAL INNOVATION + TECHNOLOGY RESEARCH
Bandwidth Boom: Measuring U.S. Communications Capacity from 2000 to 2008 EXECUTIVE SUMMARY > June 24, 2009
_________________________________ • Residential bandwidth per capita grew 50x. • The average Americanʼs personal communications power grew almost 100-fold over the last eight years. • Contrary to dismal assertions of a digital Dark Age, the first generations of real broadband enabled a new boom in digital applications that spread widely to consumers in the home and on the go.
• Wireless bandwidth per capita grew 499x. • Total consumer bandwidth per capita grew 84x, for a compound annual growth rate of 74%. • Nominal U.S. info-tech investment totaled some $3.5 trillion. Looking forward:
• Mooreʼs law, combined with smarter regulatory policies and big infrastructure investments, yielded dramatic gains in consumer bandwidth and the diversity of communications channels. • Mobile phone and wireless bandwidth grew fastest, leaping 500-fold. Over the eight-year period from 2000 to 2008: • Total residential bandwidth grew 54x. • Total wireless bandwidth grew 542x. • Total consumer bandwidth grew 91x.
• New applications like real-time interactive video and a projected 66-fold explosion in mobile data by 2013 will require continued large investments in broadband networks and related communications infrastructure. • Pro-investment policies are needed to (1) deliver more bandwidth to ever more consumers and to enlarge geographic coverage areas; (2) drive new innovations in crucial sectors like education and health care; and (3) accommodate rapid data traffic growth with ever-greater real-time latency and quality-ofservice requirements. EE
U.S. Consumer Bandwidth Per Capita
Total U.S. Consumer Bandwidth
2500
800000
600000 500000 400000 300000 200000 100000
residential + wireless
kilobits per second
gigabits per second
700000 2000 1500
residential + wireless
1000 500 0
0 00 001 002 003 004 005 006 007 008 20 2 2 2 2 2 2 2 2
00
20
01
20
02
20
03
20
04
20
05
20
06
20
ENTROPY ECONOMICS LLC > 156 S. FIRST STREET > ZIONSVILLE, INDIANA 46077 USA > 317.663.0509 > ENTROPYECONOMICS.COM
20
07
20
08
> BROADBAND REPORT <
______________________________________________________________________________________________________________________ GLOBAL INNOVATION + TECHNOLOGY RESEARCH
Bandwidth Boom: Measuring U.S. Communications Capacity from 2000 to 2008 EXECUTIVE SUMMARY > June 24, 2009
_________________________________ • Residential bandwidth per capita grew 50x. • The average Americanʼs personal communications power grew almost 100-fold over the last eight years. • Contrary to dismal assertions of a digital Dark Age, the first generations of real broadband enabled a new boom in digital applications that spread widely to consumers in the home and on the go.
• Wireless bandwidth per capita grew 499x. • Total consumer bandwidth per capita grew 84x, for a compound annual growth rate of 74%. • Nominal U.S. info-tech investment totaled some $3.5 trillion. Looking forward:
• Mooreʼs law, combined with smarter regulatory policies and big infrastructure investments, yielded dramatic gains in consumer bandwidth and the diversity of communications channels. • Mobile phone and wireless bandwidth grew fastest, leaping 500-fold. Over the eight-year period from 2000 to 2008: • Total residential bandwidth grew 54x. • Total wireless bandwidth grew 542x. • Total consumer bandwidth grew 91x.
• New applications like real-time interactive video and a projected 66-fold explosion in mobile data by 2013 will require continued large investments in broadband networks and related communications infrastructure. • Pro-investment policies are needed to (1) deliver more bandwidth to ever more consumers and to enlarge geographic coverage areas; (2) drive new innovations in crucial sectors like education and health care; and (3) accommodate rapid data traffic growth with ever-greater real-time latency and quality-ofservice requirements. EE
U.S. Consumer Bandwidth Per Capita
Total U.S. Consumer Bandwidth
2500
800000
600000 500000 400000 300000 200000 100000
residential + wireless
kilobits per second
gigabits per second
700000 2000 1500
residential + wireless
1000 500 0
0 00 001 002 003 004 005 006 007 008 20 2 2 2 2 2 2 2 2
00
20
01
20
02
20
03
20
04
20
05
20
06
20
ENTROPY ECONOMICS LLC > 156 S. FIRST STREET > ZIONSVILLE, INDIANA 46077 USA > 317.663.0509 > ENTROPYECONOMICS.COM
20
07
20
08
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