Internet and PC Penetration in Singapore
PC and broadband penetration continually increasing in Singapore
Figure 1.1
An annual survey carried out by the Infocomm Development Authority of Singapore (IDA) shows that the number of households with at least one computer is perpetually rising since 2006.
The percentage of households with no computers have fallen from 26% in 2005 to 20% in 2008, while the percentage of those with 2 or more computers has been steadily increasing since 2003, from 23% then to 42% in 2008.
Household broadband penetration
Figure 1.2
A similar trend has been observed for home internet penetration rate that have been gradually increasing to 76% in 2008 after a jump from 66% to 71% in 2006 after three years of stagnation at 65-66%. Based on the information provided in Figures 1.1 and 1.2, we can thus infer that the internet penetration rate in Singapore is directly proportional to PC penetration rate in Singapore.
Figure 1.3
Similar to the trends of PC and internet penetration in Singapore, there is also an upward trend observed for the penetration of broadband internet access in Singapore, albeit a much steeper one. Broadband rates has more than doubled ever since 2003 to 75% of all households as of 2008.
Based on Figure 1.3, the period of 2005-2006 has so far, showed the steepest jump in broadband penetration, a difference of 11%. This may be due to the reduced cost of broadband subscription fees in recent years due to increased competition among the various providers here. (Refer to next heading.) [Source - IDA Publication: Infocomm usage for Households and Individuals]
Figure 1.4
In terms of residential broadband subscriptions, we can see that there is a huge jump of 500,000 subscriptions from 2008 to 2009 shown in Figure 1.4. This could be the case where the broadband prices are getting cheaper and more affordable for consumers.
Figure 1.5
In Jan 2009, the household broadband percentage value is 109.5% as shown in Figure 1.5, compared to the most recent percentage value as of Jan 2010, it stands at 148.9%. It increases by almost 50% but however, this does not mean that every household owns a broadband connection. Rather, it is a possibility that several households may own more than 1 broadband connection, thus boosting the percentage which is calculated based on the total number of broadband subscriptions and the total number of households in Singapore. [Source - IDA Statistics on Telecom Services for 2010]
Figure 1.6
As the internet content becomes larger in size such as streaming videos and music, the need for higher bandwidth kicks in. As shown in figure 1.6, the number of users having downstream speeds of > 10 Mbps remains the almost the same from fall 2006 to fall 2009. For downstream speeds of > 2 Mbps to 10 Mbps tends to be more popular to the bigger population as these speeds are acceptable for today's usage be it work or play.
Worldwide broadband penetration
One interesting thing to note is that in the report of broadband penetration rates by population, Point Topic reveals that Singapore only has a penetration rate of 22% (a ranking of 25 in the report as shown in Figure 1.4).
Figure 1.7
This means that only approximately 1 in every 5 persons will have a broadband connection of some sort. How can a country have two vastly different broadband penetration rates based on a slightly different set of underlying figures over the same period of time? There is a potential for misnomer here.
Firstly, standard 3.5G plans that come with almost every mobile phone subscription now are also included in the total number of broadband connections. With a mobile phone penetration rate of over 130% and a high take up of mobile broadband subscribers, it shows a growing trend of users taking broadband mobile. It leaves the question of whether the adoptation of residential broadband subscription in households here have seen any significant increase.
Secondly, although 3.5G phones go for nothing if you contract with the telco for 2 years, 3.5G data services are still prohibitively expensive. Having the services doesn’t necessarily mean you will use them. It’s more than just penetration figures and statistics. It’s also about the tech-saviness of the general population, the computer literacy of baby boomers and also the social lifestyle of Singaporeans when it comes to surfing the internet and going online. So at the end of it all, are we really the “most-wired ” nation in the world? In conclusion, the above two points were emphasized because the household penetration figures are dervied by taking the total number of broadband connections in the country, divided by the total number of households. It's not the best benchmark to derive true residential broadband adoption rates.
Singapore offers one of the best deals for broadband internet connections.
A survey conducted by the International Telecommunication Union has ranked Singapore the 4th in the world from 8th place in 2008. for the cheapest broadband internet costs relative to average monthly income. (Actual statistics - Broadband costs are roughly 0.58% of Singaporeans' average monthly income.) This may be due to the rising competition among broadband providers in recent years, leading to the dip in broadband subscription prices. [Source - ITU: Measuring the Information Society 2010]

Figure 1.8 - Singapore's rankings in terms of fixed phone line, mobile phone and broadband provisions.
