broadband strategies handbook.pdf - Khazar University

CHAPTER 6Driving Demand for BroadbandNetworks and ServicesIn general terms, demand for broadband services, applications, and contentis thriving and may not appear to need a large amount of government effortto spur adoption by those who have broadband access. In 2010, for example,40 percent of all consumer Internet traffic was video, 1 which was 1.6 timesthe amount of video traffic in the previous year and consisted mostly of privatesector–created or user-generated video. Broadband use is growingquickly and is heavily driven by private sector content. Nevertheless, governmentshave sought to complement supply-side policies that focus onbuilding infrastructure with demand-side efforts that seek to drive demandfor broadband access and services. Although demand stimulation is particularlyrelevant in the early stages of broadband market development, it is alsoimportant in more mature broadband markets, where some potential users,such as elderly and less-educated persons, may not be taking advantage ofthe benefits offered by broadband. 2Demand facilitation or stimulation refers to efforts to boost the use ofbroadband by raising awareness of its possible benefits as well as making itaffordable and more attractive to users. As discussed in chapter 1, supplysidestrategies focus on the “availability” of broadband by promotinginvestment in broadband technologies and infrastructure, based on theassumption that there is unsatisfied demand or that demand will grow to247