3. Broadband

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Broadband Growth

Uptake, price and speed – these three indicators about broadband tell much about a country’s online maturity. For two of the three, the message is becoming more positive for Ireland.

Broadband subscriptions showed the highest quarterly growth levels in the first quarter of 2007 since broadband was launched in Ireland five years ago. Total subscribers stood at 602,000 at the end of March, an impressive 84,000 gain on the previous quarter. Broadband subscription levels have practically doubled within a year.

We’re playing catch-up. National growth levels are among the highest of all OECD countries. However, high levels of growth are needed if Ireland is to be a better international performer and if urban/rural imbalances are to be addressed.

On the latest OECD broadband league table, Ireland comes in at 23 of the 30 countries plotted, with a broadband penetration level of 12.5% compared with an OECD average of 16.9%.

On price, too, Irish subscribers seem to be getting a fairer deal. Among the EU15, Ireland ranked fifth in terms of the best-priced broadband household DSL package, five places less expensive than the EU average. The Irish monthly cost was €22.58, compared with an EU average of €29.24.

But the flavour of broadband Irish businesses and consumers experience is poor. An OECD study shows an astonishing gap between two Asian economic powerhouses and the rest of the world. Japan and Korea both recorded speeds of 100 Mbit per second and way down the table Ireland came in 23rd position, with a speed of just 3 Mbit per second. This comparison is based on consumer fastest broadband speeds offered by the incumbent telecommunications operator.

Given that high-speed Internet fuels growth of knowledge-based businesses, this graph should be a wake-up call for policy makers.

Back to contents of State of the Net issue 6