Take-up of internet services – Ofcom Analysis

First we will consider the ways consumers can access internet at home. Currently when compared to PC, laptop has become more popular among households and almost three out of five adults are having one in the household. The decline in the ownership of desktop PC and increase in laptop is experienced everywhere and among all socio-economic groups. For the first time Ofcom is also able to measure the ownership of netbook and or tablet computers (such as iPads). At present ownership of netbook is 5% and tablet computer is 4%. Generally, under 65s were the most popular owners of these devices but during the last two years there has been remarkable growth in ownership among over 65s. Around 60% of 65-74 year olds have access to any one of these devices at home.

Ofcom measures take-up of the internet in two ways. Consumer’s who access internet at home is covered by the first part of the study and the second part deals with measuring the proportion of consumers who access internet in any location. Internet access at home includes access to internet through PC, netbook, tablet computer or laptop. For the third year running, the proportion of houses using broadband as their main source of internet connection has remained stable at 97%. Only about 11% of the households use mobile broadband as internet connection and the remaining 86% use fixed broadband. Smartphones are not included in this broadband data.

Take-up of fixed broadband
In most countries separate data for business and residential broadband connections are not available. Since 2004, all countries experienced an increase in broadband ownership. Across European countries levels of broadband penetration vary significantly. Netherlands had the highest take-up of broadband connections, 39 connections per 100 people. When compared India has the lowest take-up, with only one broadband connection per 100 people. The UK has relatively high take-up, with 31 broadband connections per 100 people. The UK attained this status because of the availability of DSL broadband and relatively low broadband pricing. For England, Northern Ireland and Scotland, take-up of broadband at home has remained stable during the last year. As a method of internet connection, take-up of broadband has continued to rise and currently 76% of households use fixed or mobile broadband. The age group 65-74 are the largest users of broadband as well as the largest owners of these devices. Over 75 groups are neither interested nor the least interested to have broadband access at home or to own any of the devices. Among younger age groups, mobile broadband continues to be most popular.

It is really good to know some basic technical aspects of internet connections. The latest research of the regulator shows that the average actual broadband speeds available in the UK in May 2011 were 6.8 Mbits/s whereas the headline speeds of the UK broadband connections is above 10Mbits/s in May 2011. Even now majority of the customers are not aware of the broadband speeds they are getting and the speeds promised by the operators. Regarding the awareness of broadband connection speeds consumers ranging from the age groups 16 to 65+ are all alike, they did not know any thing about the broadband speeds. When 50% of the male broadband consumers say that they did not know about the broadband speeds, 75% of women gave the same answer.

Users of internet services in a location
Considering the proportion of adults who use internet in a location is the second method of assessing internet access. It is evident that the use of internet has steadily increased and that 80% of the adults access the internet either at home or elsewhere. This increase may be the result of rapid take-up of smartphones or the steady rise in home internet connections. Usually the use of internet is higher among the under 45 age group. It is to be noted that since 2009 more than half of the 65-74 age group say that they are using internet at home.

Users of mobile broadband
Ofcom conducted a study on the places where consumers with mobile broadband use it and found that overall 95% of adults use it at home. Only 5% say that they use it always outside the home.