Thursday, May 29, 2008

US Adopting Broadband on Par With Most OECD Countries

US Adopting Broadband on Par With Most OECD Countries
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A new analysis by the Phoenix Center shows that the United States is adopting broadband technology at the same pace as most other industrialized countries, once demographic and economic differences are taken into account. The study demonstrates that 91% of the differences in the broadband adoption rate among industrialized countries are explained by demographic and economic factors such as education, income inequality, and population age and density.

Using broadband data just released by the Organisation for Economic Co-Operation and Development ("OECD"), the study calculates a "Broadband Efficiency Index" ("BEI") to measure the efficiency with which each of the 30 OECD member countries converts its economic and demographic endowments into broadband subscriptions. With very few exceptions, the Phoenix Center finds that broadband subscription in OECD countries is consistent with those endowments - about two thirds of OECD countries have an efficiency rate of 95% or better. Significantly, the United States has an efficiency index of 96.7%, which is slightly higher than Japan (96.3%) and Korea (95.8%). The BEI uses the econometric technique of Stochastic Frontier Analysis to arrive at the results. The study expands on the Phoenix Centers' earlier work.

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