U.S. Broadband Market Shrinking

The Pew Internet & American Life Project reported in a paper dated September 24th, but released earlier in the week, that residential broadband adoption grew quickly in recent years; however, the speed of adoption is now slowing.


The study reports that the number of residential broadband users increased only three percent during the first six months of 2005. In short, “There is not much pent-up demand for high-speed Internet use at home,” according the Pew report, and the average dial-up user is now older, less educated, or in a lower income bracket than dial-up users of just three years ago.

The survey included data current through May 2005 and reported that 53 percent of residential internet users have a high-speed connection at home. In December 2004, half of residential users had home broadband. This six percent increase, over six months, is “small and not statistically significant,” according to the report.

During roughly the same calendar period, a year earlier, the penetration of residential broadband increased from 35 to 42 percent, a full 20 percent increase.

The report argues that “the potential pool of potential adopters of broadband is comprised of several different groups that are either not large or declining.”

Dave’s Opinion
I enjoy reading the reports that come from the researchers at the Pew Internet & American Life Project, and this report is no exception. While I’m disheartened to find that broadband adoption is decreasing, I’m heartened to find that over half of American households have useful bandwidth.

I suggest that you read this report, and the other Pew papers. I think you’ll find them illuminating.

Call for Comments
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References
Pew Internet & American Life Project
">Broadband Adoption in the United States: Growing but Slowing