1. Jan. 2006 Internet Broadband Usage Adoption in Taiwan: An Overview Report Jan. 2006 Dr. Te-Hsin Liang Associate Professor Dep’t of Statistics Information Science Director, Survey & Statistics Analysis Research &Consultancy Center, Taiwan Fu Jen Catholic University Dr. Yu-li Liu Professor Dep’t of Radio and TV National Chengchi University Survey conducted by Survey & Statistics Analysis Research & Consultancy Center, Fu Jen Catholic University, commissioned by Taiwan Network Information Center APIRA conference

2. 1. Methodology 2. Estimated Population and Penetration Rate of Internet and Broadband Usage (Internet and Broadband Users, Internet and Broadband Households, Wireless Internet Users, Mobile Internet Users) 3. Growth of Internet and Broadband Usage (Internet and Broadband Users, Internet and Broadband Households, Wireless Internet Users, Mobile Internet Users) 4. Digital Divide of Areas and Demographics (Internet and Broadband Users, Internet and Broadband Households, Wireless Internet Users, Mobile Internet Users) 5. Analysis on the Behavior (Internet and Broadband Users, Broadband and Non-Broadband Households, Wireless Internet Users, Mobile Internet Users) 6. Conclusion Outline

3. 1. Methodology Survey TimeDec. 5,2005 to Jan. 16, 2006 Sample Number3,039 valid samples TargetResidents in Taiwan age 12 and above who live with their families Population 7,259,110 households in 23 Cities/Counties in Taiwan. *Demographic information based on 2005 Monthly Demographic Statistics Report, Ministry of Interior, Executive Yuan Survey MethodComputer Assisted Telephone Interviewing Survey Sampling Method The survey uses stratified simple random sampling. Based upon the strata of the 23 cities/counties in Taiwan, the survey is done using proportional allocation with random sampling targeting at residents in Taiwan age 12 and above. Estimation Method Method for Estimating the Total Number of Internet users: Three variables, cities/areas, gender and age groups are used for weighting the random stratified samples of interviewees age 12 and above in Taiwan. (The sample is based upon a total of 19,387,289 residents. The demographic data is released by the Ministry of Interior in November 2005.) Method for Estimating the Total Number of Internet Household: Two Variable cities/areas and the number of members in the household are used for weighting the random stratified samples. (Demographic Information: 7,259,110 households, according to the 2005 Monthly Demographic Statistics Report, Ministry of Interior)

4. 2. Estimated Population and Penetration Rate of Internet and Broadband Usage 2.1 Internet and Broadband Users 2.2 Internet and Broadband Households 2.3 Wireless Internet Users 2.4 Mobile Internet Users

5. 2. Estimated Population and Penetration Rate of Internet Users 1.97 million residents in Taiwan age under 12 have experiences of using the Internet; while 12.79 million residents in Taiwan age 12 and above have experiences of using the Internet. The estimate is that 14.76 million residents of all ages have experiences using the Internet in T aiwan. Estimated Population of Internet Users in Taiwan

6. 2.1 Estimated Population and Penetration Rate of Internet and Broadband Users Percentage of Internet Users in TaiwanPercentage of Broadband Users in Taiwan (1)The percentage of Internet users age 12 and above in Taiwan is 65.97% (12.79 million). (2) 59.93% (11.62 million ) of residents in Tai wan Age 12 and above have experiences of using broadband. *The data is based upon a population of residents in Taiwan age 12 and above. * Sampling Error ： ±1.78% (Confidence level 95%)

7. Percentage of Internet Households in TaiwanPercentage of Broadband Households in Taiwan 2.2 Estimated Population and Penetration Rate of Internet and Broadband Households (1) 73.39% (5.33 Million) of the households in Taiwan have an access to the Internet. (2) 64.81% (4.70million) households in Taiwan are broadband subscribers. *The data is based upon the strata of the 23 cities/counties in Taiwan. * Sampling Error ： ±1.78% (Confidence level 95%)

8. 2.3 Estimated Population and Penetration Rate of Wireless Internet Users (1) 18.38% (3.56 million) of the residents Age 12 and above in Taiwan have experience of using Wireless Internet.. Estimated Penetration Rate of Residents using Wireless Internet *The data is based upon a population of residents in Taiwan age 12 and above. * Sampling Error ： ±1.78% (Confidence level 95%)

9. 2.4 Estimated Population and Penetration Rate of Mobile Internet Users (1) 8.85% (1.66 million) of the residents in Taiwan Age 12 and above have experience of using Mobile Internet Service. Percentage of Mobile Internet Users in Taiwan *The data is based upon a population of residents in Taiwan age 12 and above. * Sampling Error ： ±1.78% (Confidence level 95%)

10. 3. Growth of Internet and Broadband Usage 3.1 Internet and Broadband Users 3.2 Internet and Broadband Households 3.3 Wireless Internet Users 3.4 Mobile Internet Users

11. 3.1 Growth of Internet and Broadband Users in Taiwan Source ： TWNIC Survey, & The Statistics Department of the Ministry of Transportation & Communication Unit ： Million Growth of Internet Users in Taiwan Growth of Broadband Users in Taiwan Age 0-100 Sep 2002Mar 2003 Jul 2003 Age 15 or above Age 0-100 Jan 2006 Age 0-100 Jul 2005 Age 0-100 Jan 2004 Age 0-100 Jul 2004 Age 0-100 Jan 2005 Age 0-100

12. 3.2 Growth of Internet and Broadband Households in Taiwan Source ： TWNIC Survey Unit ： Million Growth of Internet Households in Taiwan Growth of Broadband Households in Taiwan

13. 3.3 Growth of Wireless Internet Users (1) From the chart below, we can see that there is a growing number of Wireless Internet Users i n Taiwan. By the end of Jan. 2006, 3.56 million of residents in Taiwan have experiences of u sing Wireless Internet. Growth of Wireless Internet Users in Taiwan Unit ： Million Source ： TWNIC Survey

14. (1) From the chart below, we can see that there is a growing number of Mobile Internet Users in Taiwan. By the end of Jan. 2006, 1.66 million of residents in Taiwan have experience of using Mobile Internet. Growth of Mobile Internet Users in Taiwan 3.4 Growth of Mobile Internet Users Unit ： Million Source ： TWNIC Survey

15. 4. Digital Divide of Areas and Demographics 4.1 Internet and Broadband Users 4.2 Internet and Broadband Households 4.3 Wireless Internet Users 4.4 Mobile Internet Users

16. Percentages of Internet Users in Different Gender of Taiwan 4.1 Digital Divide of Areas and Demographics -Internet and Broadband Users Percentages of Broadband Users in Different Gender of Taiwan

17. Percentages of Internet Users in Different Age of Taiwan 4.1 Digital Divide of Areas and Demographics -Internet and Broadband Users (continued) Percentages of Broadband Users in Different Age of Taiwan

18. ＊ Digits in the parenthesis is the Sampling Error: % Percentages of Internet Users in Different Areas of Taiwan 4.1 Digital Divide of Areas and Demographics -Internet and Broadband Users (continued) Percentages of Broadband Users in Different Areas of Taiwan (±6.04) (±7.97)(±3.12) (±3.83) (±3.51) (±6.93) (±3.21) (±2.77) (±1.78) (±6.04) (±7.97) (±3.12) (±3.83) (±3.51) (±6.93) (±3.21) (±2.77) (±1.78)

19. Educational Background of the Economic Head of Households with Internet Access 4.2 Digital Divide of Areas and Demographics -Internet and Broadband Households (1) According to the educational background of the economic head of the households, 96.34% of them have a master’s degree and above, and it is followed by 86.63% with university degree, and 80.52% with junior college degree.

20. Percentages of Internet Households according to Monthly Income 4.2 Digital Divide of Areas and Demographics -Internet and Broadband Households (continued) (2) 96.54% of the households in Taiwan with access to the Internet have an average income of NTD 200,001 and above, 93.75% have an average income of NTD 100,001–150,000; 92.37% with an income of NTD 80,001–100,000, and they are followed by 90.19% with an income of NTD 150,001–200,000.

21. ＊ Digits in the parenthesis is the Sampling Error: % Percentages of Internet Households in Different Areas of Taiwan 4.2 Digital Divide of Areas and Demographics -Internet and Broadband Households (continued) Percentages of Broadband Households in Different Areas of Taiwan (±6.04) (±7.97)(±3.12) (±3.83) (±3.51) (±6.93) (±3.21) (±2.77) (±1.78) (±6.04) (±7.97)(±3.12) (±3.83) (±3.51) (±6.93) (±3.21) (±2.77) (±1.78)

22. (1) Gender-wise, there is a higher percentage of male than female using Wireless Internet. 20.28% (1.96 million) males have used Wireless Internet, while for female is 16.50% (1.60 million) Gender Difference in Wireless Internet Users 4.3 Digital Divide of Areas and Demographics -Wireless Internet Users

23. (2) In terms of age groups, the age group of 21-25 ranks top, with 32.65% (0.63 million) of the interviewees have experiences using Wireless Internet; and it is followed by the age group 26-35 with 29.44% (1.10 million) and age group 16-20 with 24.81% (0.39 million), while the lowest falls on the age group of over 56 with only 1.66% (57 thousand). Percentages of Wireless Internet Users in Different Age Groups 4.3 Digital Divide of Areas and Demographics -Wireless Internet Users (continued)

24. (3) Region-wise, the percentages of the metropolitan areas of Taipei City and are Kaohsiung City 30.44% and 21.52% respectively. The percentage of Northern Taiwan is 18.44%, and i t is followed by Central Taiwan with 15.72%, Eastern Taiwan with 14.63%and Southern T aiwan with 12.58%. Percentages of Wireless Internet Users in Different Areas of Taiwan *Digits in the parenthesis is the Sampling Error: % 4.3 Digital Divide of Areas and Demographics -Wireless Internet Users (continued) (±6.04) (±7.97)(±3.12) (±3.83) (±3.51) (±6.93) (±3.21) (±2.77) (±1.78)

25. (1) Among the residents in Taiwan Age 12 and above, male Mobile Internet users are higher than that of female, 10.01% (0.97million) vs 7.15% (0.70million). Gender Difference in Mobile Internet Users 4.4 Digital Divide of Areas and Demographics -Mobile Internet Users

26. (2) The age group of 21-25 has the highest percentage of Mobile Internet users, with 21.29%; it is followed by the age group 16-20 with 21.12% and age group 26-35 with 13.13%; the lowest percentage falls on the overage 56 and above group, with less than 0.28%. Percentages of Mobile Internet Users for Different Age Groups 4.4 Digital Divide of Areas and Demographics -Mobile Internet Users (continued)

27. (3) Among residents Age 12 and above in Taiwan who have experience of using Mobile I nternet service, the percentages of the metropolitan areas of Taipei City and Eastern T aiwan are 11.05% and 10.18% respectively. In Kaohsiung City, the percentage is 9.61%, an d it is followed by Northern Taiwan with 9.48%, Central Taiwan 8.65% and Southern Tai wan with 5.34%. Percentages of Internet Users with Mobile Access in Different Areas of Taiwan *Digits in the parenthesis is the Sampling Error: % 4.4 Digital Divide of Areas and Demographics -Mobile Internet Users (continued) (±6.04) (±7.97)(±3.12) (±3.83) (±3.51) (±6.93) (±3.21) (±2.77) (±1.78)

28. 5. Analysis on the Behavior of Internet and Broadband Usage 5.1 Internet and Broadband Users 5.1.1 Internet Users 5.1.2 Broadband Users 5.1.3 Non-Broadband Users 5.2 Broadband and Non-Broadband Households 5.2.1 Broadband Households 5.2.2 Non-Broadband Households 5.3 Wireless Internet Users 5.4 Mobile Internet Users

29. 5.1.1 Analysis on the Behavior of Internet Users (1) Among the interviewees who have had experience of using the Internet, 84.75% of them use ADSL, next comes Cable Modem, and the percentage is 4.11% Percentages of Internet Accessing Methods

30. 5.1.2 Analysis on the Behavior of Broadband Users (1) Among the broadband users, 94.63% of them go online at home; it is followed by 38.91% at work places, 26.56% at school, and 19.58% at Internet café. Places where Broadband Users Get Online (Multiple Choices)

31. 5.1.2 Analysis on the Behavior of Broadband Users (continued) Amount of Time Broadband Users Spent Online On the Workday Amount of Time Broadband Users Spent Online On the Weekend

32. 5.1.2 Analysis on the Behavior of Broadband Users (continued) Favorite Time Slot for Using Broadband On the Workday (Multiple Choices) Favorite Time Slot for Using Broadband On the Weekend (Multiple Choices)

33. (6) Among the interviewees who are broadband users, 87.04% of them have e-mail address, 12.96% of them don’t have e-mail address. Percentage of Broadband Users with E-mail Address 5.1.2 Analysis on the Behavior of Broadband Users (continued)

34. (7) Among the interviewees who are broadband users with e-mail address, 39.17% of them have one e-mail address, and 34.84% of them have two e-mail addresses. Amount of Broadband Users who Have E-mail Address 5.1.2 Analysis on the Behavior of Broadband Users (continued)

35. (8) Among the interviewees who are broadband users, 73.68% of them use it as a tool to browse web pages, 53.96% of them use it for e-mails, next follows 32.06%, users who use for chatting. Purposes for Individual Broadband Usage (Multiple Choices) 5.1.2 Analysis on the Behavior of Broadband Users (continued)

36. (9) Among the interviewees who are broadband users, 35.36% of them have experience of using internet music of broadband payment service, 33.33% of them have experience of using online game of broadband payment service. Percentage of Broadband Users Using Broadband Payment Service 5.1.2 Analysis on the Behavior of Broadband Users (continued)

37. (10) Among the interviewees who are broadband users without using any broadband payment service, 39.08% of them have willing of using internet phone in the future, 26.76% of them have willing of using online learning and distance teaching in the future. The Willing of Non-Broadband Users Will Use Broadband Payment Services in the Future 5.1.2 Analysis on the Behavior of Broadband Users (continued)

38. 5.1.3 Analysis on the Behavior of Non-Broadband Users (1) Among the interviewees who are not broadband users, 36.67% respond that the main reason is “Not Needed”, next follows, 18.56% for “Too Expensive”. Reasons for Not Subscribing Broadband (Multiple Choices)

39. 5.2.1 Analysis on the Behavior of Broadband Households (1) Among the ADSL subscribers, 77.34% of them subscribe from Hinet, next comes 4.16% for Seednet and 2.60% for TFN. Popular ADSL Service Providers

40. (2) Among the Cable Modem subscribers, most of the households, 55.83%, subscribes from Local cable TV provider. Popular Cable Modem Service Supplier 5.2.1 Analysis on the Behavior of Broadband Households (continued)

41. (3) Among the ADSL subscribers, 62.10% of them don’t know the download speed, and 7.81% of them use the download speed of 2M/64Kbps. Download Speed of ADSL Subscribers 5.2.1 Analysis on the Behavior of Broadband Households (continued)

42. (4) Among the Cable Modem users, 61.32% of them don’t know the download speed. Download Speed of Cable Modem Subscribers 5.2.1 Analysis on the Behavior of Broadband Households (continued)

43. (5) When asked the major factors in deciding which broadband suppliers to use, 18.94% of the subscribers are most concerned about stability, the other factors are speed (18.33%), c ost (18.31%) and ISP reputation (12.88%). Factors Considered in Choosing ISP (Multiple Choices) 5.2.1 Analysis on the Behavior of Broadband Households (continued)

44. (6) Among the households using broadband, the average expenditure from NTD 750~1,000 ranks top, with 29.26%, next follows NTD 1,001~1,250 with 15.47%. Average Monthly Expenditures on Broadband 5.2.1 Analysis on the Behavior of Broadband Households (continued)

45. (7) The majority of the broadband subscribers use the download speed of 2M/sec. Among domestic broadband subscribers, 18.18% of them think the reasonable expenditures on broadband should be within the range of NTD 251~500, next follows 13.03% for the range of NTD 501~750, then 10.51% for NTD 751~1,000. Reasonable Range for Broadband Expenditures 5.2.1 Analysis on the Behavior of Broadband Households (continued)

46. (8) Among the households who agree there are problems using the broadband, 21.97% of them think the download speed is slow, next follows 20.56% of them think the connection quality is poor. Problems for Using Broadband (Multiple Choices) 5.2.1 Analysis on the Behavior of Broadband Households (continued)

47. (9) Among the broadband households, 39.60% of broadband households are fixed IP, but 36.79 % broadband households respond with “unknown”. The IP type 5.2.1 Analysis on the Behavior of Broadband Households (continued)

48. (10) Among the broadband subscribers, 39.56% are satisfied (includes satisfied and very satisfied) with their ISP, but 50.91% subscribers respond with “hard to say”. Satisfaction Rate with ISP 5.2.1 Analysis on the Behavior of Broadband Households (continued)

49. 5.2.2 Analysis on the Behavior of Non-Broadband Households (1) For households with Internet connection but not broadband, 56.27% respond that the main reason is “Not Needed”, next follows, 18.89% for “Lack of Hardware”. Reasons for Not Subscribing Broadband (Multiple Choices)

50. (2) For households with Internet connection but not broadband, 82.31% respond that they “Plan to subscribe broadband in the coming six months”, while 17.69% respond that they “Have no plan to subscribe broadband in the coming six months. Plans to Subscribe Broadband in the Coming Six Months 5.2.2 Analysis on the Behavior of Non-Broadband Households (continued)

51. (3) 53.62% households with plans to subscribe broadband in the coming six months opt for ADSL, only 3.34% of them opt for Cable Modem. Preferred Types for Broadband Subscription 5.2.2 Analysis on the Behavior of Non-Broadband Households (continued)

52. (4) 77.65% of the households which plan to subscribe ADSL in the coming six months will subscribe from Hinet (Chung Hua Telecom), while about 1.84% of them plan to choose TFN. Preferences of ISPs for Households Planning to Subscribe ADSL 5.2.2 Analysis on the Behavior of Non-Broadband Households (continued)

53. 5.3 Analysis on The Behavior of Wireless Internet Users (1) Among the Wireless Internet users, 50.84% of them use Wireless Internet from home, 31.00 % from office, while 22.25% from school. Locations for Using Wireless Internet (Multiple Choices)

54. (2) Among the Wireless Internet users, 25.27% use it for free, it is followed by 14.71% who “paid by family member” and 12.21% who pays NTD 751-1,000. The lowest percentage of expenditures for Wireless Internet falls on NTD 1,501-1,750, with only 0.38%. Expenditures of Wireless Internet Users 5.3 Analysis on The Behavior of Wireless Internet Users (continued)

55. (3) Among the Wireless Internet users, 58.82% don’t understand (includes “don’t understand” a nd “don’t understand fully”) the policy of wireless broadband application environment e stablished by government. 30.71% understand the policy (includes “understand very cl early” and “understand” ). Wireless Internet Users’ Understandability of the Policy of Wireless Broadband Application Environment Established by Government 5.3 Analysis on The Behavior of Wireless Internet Users (continued)

56. (4) Among the Wireless Internet users, 67.59% consider that the policy of wireless broadband application environment established by government is helpful (includes “very helpful” and “helpful”) to people. Wireless Internet Users Consider the Benefit of the Policy of Wireless Broadband Application Environment Established by Government 5.3 Analysis on The Behavior of Wireless Internet Users (continued)

57. (5) Among the Wireless Internet users, 81.04% of them don’t use Wireless Internet in the demonstrative area popularized by government. Experience of Wireless Internet Users Using Wireless Internet in the Demonstrative Area Popularized by Government 5.3 Analysis on The Behavior of Wireless Internet Users (continued)

58. 5.4 Analysis on Behavior of Mobile Internet Users (1) Among the Mobile Internet service users, 60.49% of them opt to use GPRS, and it is f ollowed by WAP (13.20%) and PHS (8.15%). Access Options for Mobile Internet Users (Multiple Choices)

59. (2) Among the Mobile Internet service users, the most frequently used service is “Ring-tones Download” with 44.11%, and it is followed by “Information Browsing” with 14.90% Percentages for Services Used via Mobile Internet 5.4 Analysis on Behavior of Mobile Internet Users (continued)

60. (3) 40.59% of the Mobile Internet users spent under NTD 250 on the Mobile Internet service, and it is followed by “Others” with 19.86%. Monthly Expenditures on Mobile Internet Service 5.4 Analysis on Behavior of Mobile Internet Users (continued)

61. 6. Conclusion Broadband Households in the Future

62. The group of highly use of internet Internet Users Broadband Users Age 12~15 (96.06%) 、 Age 16~20(98.52%) 、 Age 21~25(95.25%) Age 16~20(91.11%) 、 Age 21~25(90.19%) Households in the metropolis City (81.13%) 、 District (83.57%) 1. Households in the Non-metropolis ( Village or Town) 2. The elderly groups Make a Plan Reasons for Not Subscribing Broadband ： First ： Not Needed Second ： Lack of Hardware Third ： User’s age is too old or too young Increase Their Demand Base on Peoples’ Lives City(74.91%) 、 District (75.55%) Internet Users Broadband Users 6. Conclusion (continued)

63. Purposes of Broadband Usage (Multiple Choices) Browse web pages (73.68%) Information searching (29.57%) E-mail (53.96%) Online game (21.27%) Chat (MSN 、 ICQ) (32.06%) Broadband Payment Service The Usage of Broadband Payment Service in Existence 35.36% 33.33% Internet Music Online Game 39.08% The willing of Broadband Payment Service in the Future Internet Phone

64. Thanks For Your Attention