US Broadband Internet Penetration To Reach 41% By 2006
Forty-one percent of online households in the US will subscribe to a broadband internet connection service by 2006, according to two US broadband reports released by Jupiter Media Metrix last week. The data show a fast rise in broadband Net access from the 9% of homes currently connected in 2000.
The two reports, US Broadband Household Projections: Time Business Initiatives to Reach Growing Broadband Audience and Jupiter Metrics: Broadband 2Q 2001, recommend that companies offering online services should begin preparing for the widespread adoption of broadband internet access.
| US broadband internet access growth | ||
| 2000 | 2006 | |
| Number of broadband homes (million) | 5.2 | 35.1 |
| Penetration (%) | 9.0 | 41.0 |
| Source: Jupiter Media Metrix, 17/10/01 | ||
“Despite the recent failures of several broadband pioneers, and slower growth of the overall online population, broadband will find the masses in the US shortly,” said Joe Laszlo, Jupiter senior analyst. “While consumers’ awareness of broadband has grown considerably, improved and increased marketing by cable and DSL providers will finally help overcome lingering resistance to the cost of broadband subscriptions.
The research also found that broadband internet homes use their connections more than narrowband (dial-up) homes, which have a much slower connectivity. The key area of difference seems to be multimedia use, where higher bandwidth delivery becomes very important. Jupiter says that 46% of broadband users download music, compared to just 26% of dial-up users. Listening to music is 48% for broadband users and 30% for dial-up users; watching video is 36% and 18% respectively. Personal banking and finance is also more popular with broadband users.
| US broadband/narrowband usage patterns (%) | ||
| Narrowband (dial-up) | Broadband | |
| Download music | 26.0 | 46.0 |
| Listen to music | 30.0 | 48.0 |
| Watch video | 18.0 | 36.0 |
| Personal banking | 30.0 | 48.0 |
| Stock-related activities | 23.0 | 35.0 |
| Source: Jupiter Media Metrix, 17/10/01 | ||
Comment A similar pattern of usage looks set to develop in the UK, with the cable companies Telewest and NTL now co-operating on marketing to boost the country’s uptake of broadband services. Broadband services have already proven very popular in the areas that they have been launched and NTL’s new ‘cut-price’ service is likely to invigorate the market further (see Forecasts).
Currently broadband cable access is available to around 9 million homes in the UK and this is forecast to rise to 11.6 million homes by the end of 2002 – virtually all homes within NTL and Telewest’s serviceable areas. The two companies are able to enter a co-marketing deal that will be mutually beneficial because there is no overlap between franchise areas. However, this effectively eliminates consumer choice of service provider in the broadband market.
| Broadband breakdown, August 2001 | |||||
| ÂÂ | Cable | Satellite | ADSL | T1/Leased Line | Total broadband |
| Sweden | 3.3 | 0.0 | 5.5 | 5.0 | 13.8 |
| Denmark | 6.6 | 0.0 | 6.6 | 0.0 | 13.2 |
| Germany | 3.6 | 0.0 | 4.2 | 0.0 | 7.8 |
| France | 3.2 | 0.4 | 2.8 | 0.0 | 6.4 |
| Spain | 2.7 | 0.0 | 3.5 | 0.0 | 6.2 |
| Norway | 3.5 | 0.2 | 1.4 | 0.0 | 5.1 |
| UK | 1.7 | 0.1 | 0.5 | 0.0 | 2.3 |
| Italy | 0.5 | 0.1 | 0.3 | 0.0 | 0.9 |
| Source: NetValue, 01/10/01 | |||||