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US Broadband Up 34% In 2004

US Broadband Up 34% In 2004

Broadband connections in the US rose by 34% to 37.9 million users during 2004, according to data released by the Federal Communications Commission (FCC).

Cable and digital subscriber lines (DSL) were shown to be leading the growth in terms of broadband penetration, with DSL lines increasing by 45%, to 13.8 million in 2004. High-speed cable connections rose by 30% during 2004, reaching 21.4 million lines.

The commission data reveals that a total of 549,621 broadband connections reported at the end of 2004 were classified as wireless or satellite, up from 367,118 at the end of 2003. Fibre and powerline connections grew from 602,197 at the end of 2003 to 697,779 as of December 2004.

Commenting on the report, however, Kyle McSlarrow, president and chief executive officer of the National Cable Telecommunications Association claimed that the FCC report underscores the effectiveness of the cable industry’s $100 billion investment in building a nation-wide broadband infrastructure.

McSlarrow said: “The report reaffirms our industry’s commitment to rapid deployment of broadband services and to further providing consumers with a growing array of choices.”

He added: “It also validates the light regulatory touch applied by Congress and the FCC to broadband policy, which has and will continue to result in a vibrant and competitive broadband marketplace providing a great value to American consumers.”

Cable connections in US broadband households are declining, with research and consultancy firm, Strategy Analytics, predicting digital subscriber lines (DSL), fibre and other types of broadband to make up over 10% of the market by 2010 (see DSL Overtaking Cable Broadband In US).

Strategy Analytics forecasts broadband households in the US to rise to 77.6 million by 2010, up from 34.1 million in 2004.

The global firm shows cable to be steadily losing favour with US broadband customers, estimated to fall to 57% of the total market by the end of 2005, down from 59% in 2004 and 62% in 2003.

DSL, however, is forecast to perform strongly over the coming years, with Strategy Analytics predicting its market share to increase to 41% by the end of 2005, up from 39% in 2004.

These projections are in line with analyst eMarketer’s estimate released earlier this year, showing DSL creeping up to over 40% of the market by the end of this year (see US Broadband Adoption Falls Behind UK).

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