Broadband penetration means the percentage of households or individuals within a specific geographic area that have access to broadband internet services. Broadband internet is a high-speed, always-on connection that allows for faster downloading, streaming, and communication over the internet.
The broadband penetration rate is an important measure because it signifies the level of internet connectivity within a given region. A higher penetration rate means that a larger portion of the population has access to faster internet speeds and a wider range of online services, such as video calls, online learning, and e-commerce.
Governments and organizations often monitor broadband penetration rates to assess the effectiveness of their efforts in expanding internet access and bridging the digital divide. A higher penetration rate can contribute to economic growth, improved education opportunities, and enhanced communication and information sharing among individuals and communities.
In this link to the OECD broadband portal you can find a comprehensive overview of penetration rates and other measurements for a long list of countries.
As you can see in the top chart, Switzerland and Norway have two of the highest broadband penetration rates of the OECD, at 48.2 and 45.7 subscriptions per 100 inhabitants, respectively. This also correlates with two of the highest GDP per capita in the OECD, at around $83,000 and $115,000 per capita respectively. Other countries like France, Korea, Germany or the Netherlands also have high broadband penetration rates at around 43 to 47 subscriptions per 100 inhabitants.
Western economies have been investing in broadband networks for over four decades, which results in high internet download speeds and reliable networks, making real time communication very efficient.
Countries in Latin America or Africa are still developing their economies and have not made the heavy network investments that their Western partners have realized. This normally results in lower access to broadband internet and lower download speeds. Countries like Colombia or Costa Rica are at the right-hand-side of the chart, at only 17.6 and 21.2 broadband subscriptions per 100 inhabitants.
This disparity in broadband access and download speeds can have tangible consequences. It can limit the ability of some countries to fully participate in the global digital economy, limiting opportunities for education, entrepreneurship and economic development. Bridging this gap requires not only financial investment but also efforts in policy, regulation, and collaboration with the private sector.
Countries with higher broadband penetration rates often have higher GDP per capita due to several interrelated factors.
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