High-speed data penetration will reach 30% in the US by the end of 2005, according to growth forecasts from Merrill Lynch.
In a synopsis of the North American broadband landscape, the broker claims that high-speed data services were in 19.3% of US homes at the the end of the third quarter. It is thought that mounting frustration with dial-up services is helping to drive the spread of broadband (see
Dial-Up Delays To Drive Broadband Adoption In H2). However, despite aggressive price cutting on DSL, penetration growth has remained much faster for cable.
It is estimated that 7.3 million US households will have signed up for broadband services by the end of this year with 4.5 million opting for cable HSD while 2.7 million choose a DSL provider. Merrill asserts that broadband penetration will rise further from 21% at the close of 2003 to 30% in 2005.
Canada has been an even more receptive market for broadband (see UK Lags Behind In Broadband Uptake, Finds FCC) with HSD penetration estimated at 33.7% at the end of Q3. In contrast to the US, DSL growth is outpacing that of cable and it is predicted that 35.9% of homes will have a high-speed connection by year-end. Merrill calculates that this will rise to 47% in 2005.
