Broadband access and how broadband change media behaviour

Dag Andersen Taylor Nelson Sofres - Norsk Gallup A/S http://www.gallup.no 1

Access and use of the internet in

Total access to Internet, Monthly reach, Daily reach

75 Percentage 68 62 Total access 57 M onthly reach 50 49 50 D aily reach 40 36 30 31 25 24 27 27 17 13 14 9 12 9 55 0 2 1995 1996 1997 1998 1999 2000’ 3Q (nov.) 2001

Source: Forbruker & Media. Gallups InterTrack. 2

Internet use in Norway

Surfing pattern last month Norwegian news 71 8 News dominates Travel 44

8 Then travel related Music 32 surfing Foreign news 28 8 Search for music no. 3 Economy 28 and require high speed Software/hardware 23 Cars 22 Books 21 Household/home 19

Job 18

Health 17

Chat 16

Food 15

Cloths 11

Boat 10

Adult 6

0 1020304050607080

Source: Gallup Interbuss 3Q 2001 - In Norway - 3.712.000 persons over 13 year 3 Internet usage in Norway vs. UK?

8 3/4 of all Internet users at Reach (%) -Reach home access secured Rank Protocol Norway (%) - UK Difference connections each month 1 Secured connections 74.5 70.9 3.6 in Norway. 2 Other 22.0 27.7 -5.7 8 3 Instant messaging 18.0 23.3 -5.3 Audio-Video is used by 4 Audio-video 15.5 20.2 -4.7 20% in UK, 15% in 5 File transfers 15.3 16.3 -1.0 Norway 6 Chat 10.8 6.2 4.6 8 File transfers is used by 7 News 3.0 3.4 -0.4 about 15 % in both 8 Games 2.4 2.3 0.1 countries.

Source: NetValue sept. 2001 4

E-commerce

Questions

Have you order or bought 1400 goods / services on Internet ? 1283* 52% So me ti me 8 Nearly 1,3 million have 1200 Last mo nth done e-commerce in 1011 Norway 1000 889 8 That’s over 50% of those who have used Internet 800 last month 663 600 476* 421 376 397 19% 400 340 293 260 213 159 149 200 125 93 64

0 feb.97 feb.98 feb.99 feb.00 feb.01 aug.96 aug.97 aug.98 aug.99 aug.00 aug.01

Source: Gallup Interbuss 3Q 2001 - In Norway - 3.712.000 persons over 13 year 5

Bank services on Internet

Questions Are you registered in order to use online banking ? Yes No Unanswered/do not know 100 8 Nearly 1,3 million have access to do bank services over Internet 8 80 That’s over 50% of those who 49 have access to Internet. 54 53 66 60 60 70 60 75 86 81 88

40

50 44 45 20 38 38 33 24 28 17 10 14 0

00 0 1 i.99 . 00 i.01 0 eb.99 a eb ai.00 v. a g. f m aug.99 nov.99 f m aug.0 no feb.01 m au

Source: Gallup Interbuss 3Q 2001 - In Norway - 3.712.000 persons over 13 year 6 Knowledge - Broadband

Questions 8 Do you know what broadband is ? (N=1005) 8 Definition of broadband and then question on whether they have heard about it ? Yes (N=306) 70 %

8 70% knows the term ”broadband” Yes, 8 67% of those who didn’t know what screened 20 broadband is, have nevertheless heard about it. 8Total knowledge is 90 % Total 90

020406080100

Source: Gallup Interbuss 3Q 2001 7

Access to Broadband in Norway Access today Received offer last 6 months

100 100 % 91 90 90 80 80 74 70 70 60 60 50 50 40 40 30 30 18 20 20 9 6 10 10 3 0 0 Yes No Unanswered/ do Yes No Unanswered/ not know do not know

Source: Gallup Interbuss 3Q 2001 8

Access type in Norway

14.400-33.600 56.600 ISD N Online connect. Broadband

60 59 60 55 56 56 55 50 53 51 49

40 42 43

30 32 23 23 20 17 15 15 1313 1213 12 12 10 11 9 8 99 9 8 9 7 7 6 6 5 56 6 34 4 3 0 feb.99 feb.00 feb.01 aug.99 aug.00 aug.01 nov.98 mai.99 nov.99 mai.00 nov.00 mai.01

Source: Gallup Interbuss 9 Another reason for low broadband access

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How does broadband change media behaviour

MODALEN

A look into the future !

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Modalen - the broadband community

12 Modalen - the broadband community 8The Modalen community is situated at the end of the Osterfjord in county in . Bordering on the county, the municipality consists of about 150 families and 350-400 inhabitants. The closest major city is at a distance of 83 kilometres (52 miles), and about 1 hour and 15 minutes by car. It wasn’t always like that, as the road was built about 25 years ago.

8Local authorities and industry in the community of Modalen in Hordaland, Norway, have together with several of Norway’s leading companies within communication technology and e-business initiated the “Modalen project”, giving the inhabitants access to the Internet through broadband technology. Every family, company, public department, organisation, school and institution is now being offered connection to the system that uses the TV-set as its user interface.

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Technology

8The project will showcase technology from PCTVnet ASA and Nera ASA, the two Norwegian companies providing the infrastructure making the project possible. Other partners will provide applications and content.

8In the first phase Nera is installing a wireless broadband solution using radio signals. In 2001 Nera will also test their new solutions for two-way satellite. This will make full digital TV over IP possible.

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PCTVnet and their Homepilot

8PCTVnet front-end applications enable the end-user to: 8Use IP Video telephony 8Surf the web 8Use e-mail 8Operate interactive TV

8PCTVnet offers one-stop-shopping solutions for Set-Top-Boxes and Internet appliances.

15 Use of the internet in Norway Access to the internet

66 8Access is higher in Modalen 75% Total than rest of Norway 66 %. 75

8 55 Access in Modalen is higher both Home at job and at home. 67

8Inhabitants in Modalen are more 30 online than rest of Norway. Job 49

10 School 7 Norway 1 Modalen Othe r places

Percentage

0255075100

Source: Gallups InterTrack 1.quarter 2001 16

Newspaper is most important source for local- and regional news 8Newspaper is most important source for local and regional 68 news. Then you have TV, radio Newspaper and Internet. 69

8Internet rates higher in Modalen 21 than rest of Norway. TV 18 8TV (36%) and Internet (6%) are ranked higher among people 8 between the age 15-29 than Radio newspaper (53%). 7 Norway 2 Modalen Internet 6 Percentage

0255075100

Source: Gallups KonvergensBuss Mai 2001 17

TV is most important source for national and international news

17 Newspaper 25

70 TV 58

6 Radio 6 Norway Modalen 5 Internet 12 Prosent

0 25 50 75 100

Source: Gallups KonvergensBuss May 2001 18 Inhabitants in Modalen use less time on TV, and more time on Internet than rest of Norway

8 Modalen spend less time on 126 watching TV than average TV Norwegian 8They spend the same time 98 reading newspapers as rest of Norway. 54 8But they spend more time on Internet Internet than rest of Norway. 61 Norway Modalen 38 Newspaper 37 Minutes

0 20 40 60 80 100 120 140

Source: Gallups KonvergensBuss May 2001 19

The people in Modalen find internet more useful

8 People in Modalen find internet 38 more useful than rest of Norway. Very useful 50 8One of the reason for this is access to broadband and use of applications 49 Moderate use 43 Norway Modalen

13 Less useful 7 Percentage

0255075100

Source: Gallups KonvergensBuss May 2001 20

Use of internet services last 30 days: Modalen use audio/video and games more

86 E-mail 8The difference in use can be 90 explained by higher access - broadband. 43 File-transfers 49

32 Audio/video 55

16 Games 25

13 Chat, RC, Norway ICQ 5 Modalen

0 25 50 75 100 Source: Gallups KonvergensBuss May 2001. Among those who have used Internet last 30 days. Percentage 21 In future people will use more time on internet, and less on TV

68 More 13 Internet TV

27 Equal 60

4 Less 20

0 25 50 75 100 Source: Gallups KonvergensBuss May 2001. Among those who have seen TV last week. Prosent 22

Summary

Access to broadband in Norway 8 68 % have access to Internet 8 Nearly everybody recognise the term “Broadband” 8 60 % have ISDN 8 6 % have Broadband 8 50 % of Internet users have order or bought goods and services over Internet 8 50 % of Internet users are registered in order to use online banking Broadband influenced on media behaviour - Modalen community 8Newspaper are still number one when it comes to local and regional news but people prefer TV for national- and international news. . 8The People in Modalen use less time on TV, and more time on Internet. 8The people in Modalen find internet more useful than average Norwegian 8The people in Modalen use audio/video and games more

Applications will drive demand for broadband Content is lacking ! 23

Thank you

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