Then you're seriously, SERIOUSLY above the norm, even for industrialized western countries.
Building truly fast broadband connections throughout entire nations (IE, fiberoptic links) will take at least a decade.
Here in Finland, there is a serious push for fiber-to-the-home. Basically all new properties get fibre links pretty much by default, and where they don't already exist, new ones are getting built up as fast as they can be. My dad who lives "out there by the sticks" just got an offer for fibre broadband, and there are less than 50k people living within 50km of him. The goal set by the state is 100Mbit for everyone by 2015, but we aren't quite going to make that. The long-term plan is to replace the copper networks with fibre everywhere with a high population density, and push 4G and successors everywhere that doesn't. At present speed, it will be done at some point in 2017-2018. Similar development programs exist in most western countries. Fiber to the home will be reality for the majority of city-dwellers before the end of this decade. (The exception being the Americans -- apparently it's not okay for the government to push for infrastructure development there...
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An interesting added incentive is that the market price for copper is now so high, that collecting old copper bundles and replacing them with fiber can actually *make money* for the operator, so long as it's air cables with minimal work required.
Ahaha... Ok, and while we're dreaming let's make that gigabit connection cost no more than $10 a month too so that most people can afford it, and cover the entire world...
After it's built, there's really no fundamental cost difference between a 10Mbit fibre link and a 1Gbit fibre link to the operator. Actual connection speeds far over the internet will of course be less. (And will likely be limited somehow to reduce costs to the ISPs). But that's why CDNs exist -- my roundtrip ping to youtube is 13ms. Heavy content is moved near to the customer, so the ISP doesn't have to pay for access to it. And MS has one of the most extensive CDNs in existence.
Right now, I can get a 10Mbit speed for 10€/month, 50Mbit/s for 20€/month, 100Mbit for 30€/month, 250Mbit for 60€/month, or the 1Gbit for 90€/month. I expect the prices for the upper tiers to fall at least 20% yearly.
I'm not saying that on-demand-only will be realistic for everyone within the current gen. However, there will be tens of millions (and hundreds of millions at the end of the generation) of potential customers who have really fast connections, and would be better served by an on-demand console, because getting the data from the CDN will simply be faster than getting it from the drive.