Galt Global Review

QFS 360

October 5, 2005
The Broadband Bid
by faye mallett


It is a subject the media seems to be pre-occupied with, and most of us likely have some idea about broadband – what it is, how it’s making our lives better, and where this technology will take us into the future of communications. As a recent article from Harvard Business School’s Working Knowledge sums up:

“When true broadband arrives, everything will change – work, play, and society.”

So what is the difference between broadband – as it is now – and true broadband – when everything will change?

First we need to look at how we are using the technology now.

Defining Broadband
What is Broadband? Quite simply, it’s the method of sending and receiving data over high speed networks.

The benefits are that it’s fast – between 10 to 80 times faster than a conventional dial up connection. As sourced by the BBC, broadband connections currently allow users to connect at speeds between 512 kbps and 4 mbps compared to 56.6 kbps for standard modem connections. In addition, new services are being developed specifically for users with broadband connections, allowing consumers to do things which weren't possible previously - such as viewing good quality live video or downloading large MP3 files.

Another benefit is that users are always connected to the internet and are using it a flat, fixed rate.


The current broadband options are:

ADSL – This technology enables broadband connections between existing telephone networks.

Cable - This requires the installation of a special cable connection.

Wireless- Using wireless technology, a receiver on the outside of the house sends the signals through to connection points inside. These in turn then send the data through to a computer. Currently, it is not possible to receive wireless broadband services in all areas.

Satellite - For some people in remote areas satellite – which requires installation of a satellite dish - is the only option. This service is comparable to cable or adsl in terms of monthly charges but uses a dial-up connection for uploading content.

What kind of equipment is needed?
1) Computer and software – and not necessarily the latest model either.
2) A High Speed Modem
3) A Broadband Connection point

This is the extent of how broadband technology is currently being applied in every day technology and consumers’ lives. True broadband, as professors Robert Austin and Stephen Bradley, call it, is a more encompassing change. In their new book, The Broadband Explosion, they talk about how “real-time communication” will be able to greatly enhance interaction across geographical distances.

Changes
Austin and Bradley state that a broadband bandwidth connection is roughly twenty times faster than most cable modem connections (in the US). Once broadband becomes more consistently reliable at this speed, then people will start to figure out new ways to create value from it.

For business, this means changes in operations. It means changes in what a business can sell and how they can sell it. Increased power and speed in our broadband connections will create new platforms for business, virtual communication and computer interfaces, yet many of these benefits can’t be seen clearly right now.

In an interview with the Harvard Business School, Robert Austin talks about how the tendency to predict what will happen in the future is to “extrapolate in a straight line from today.” The shortcomings of this are made clear by a similar parallel that occurred in the 60’s and 70’s. As Austin explains:

“Moore’s Law was at work making chips more and more powerful at lower and lower prices, but early on people could not see what we would do with all that computing power. At the time they were mostly using computers as big calculators or big transaction-processing machines (for doing accounting or payroll, for example). And they looked around and asked themselves: “How many paychecks are there to process in the world?” Today we have some skeptics saying pretty much the same thing: “What will we do with all that bandwidth?” I suspect the answers will be similarly surprising.”

We are used to thinking about computers in terms of efficiency. A pending reality is that increased bandwidth could be used to create a much more interactive experience in communication. Much of this is pre-commercial. Yet from the “data glove” to haptic computing, these technologies could become more commercial once the infrastructure is in place.

Broadband – what connects our networks together – will certainly not be in the form as we know it now twenty years from now. Take the data glove, for example, a product where researchers are visioning how a user can touch something with his or her fingers from a thousand miles away and feel it push back at them.

The Here and Now
Yet back to the here and now. How are different countries regulating and investing in practical broadband technologies, right now?

Point Topic’s World Broadband Statistics for mid-2005 show a couple of clear trends:


• Europe is pushing to take over the leadership of broadband growth
• Asia and N. America are slowing down
• Russia and India are making substantial investments in broadband growth.
• The four expected future giants of the world economy - often referred to as the “BRICs” - are Brazil, Russia, India, China. China is steadily gaining on the US to become the biggest broadband country, and Brazil already has over 2.5m broadband lines.


South Korea is still the country that uses the most broadband in the world, but it is not nearly as ahead as it used to be. The general trend is that leadership in broadband growth is shifting from Asia to Europe.

The following graph shows broadband growth rates in terms of the number of broadband lines per 100 population.

Source: Point Topic's World Broadband Statistics

The countries above the trendline in the graph are growing the fastest. These include Finland, Norway and Switzerland. Countries below the line include many of those that led the broadband boom in the first half of the decade, among them the US, Canada, Germany, Korea and Japan.


Most countries are currently in the infrastructure stage, ensuring that populations are increasingly connected with broadband through wireless and satellite technologies. The world is positioned to take communications in broadband to the next level, the realities of which we can only speculate now.

 

 

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