U.S. Broadband Adoption Continues to Rise

High-speed Internet connections exist in 53 percent of all U.S. households. The report, “Broadband Access and Service in the Home 2007,” by Leichtman Research Group finds broadband services account for 72 percent of all home Internet subscriptions, up from 60 percent the previous year.

Broadband adoption is affected by household income. Broadband reaches 68 percent of households with annual income over $50,000, up from 59 percent last year. By contrast, 39 percent of households with income under $50,000 subscribe to broadband services, an increase from 27 percent.

In Q1 of 2007, 2.9 million U.S. households initiated high-speed Internet service. The top 19 cable and telephone providers, which represents 94 percent of the broadband market, account for 56.2 million subscriber accounts. Cable accounts for over 30.7 million subscribers, and telephone companies serve over 25.4 million broadband subscribers.

Adoption of high-speed Internet services is expected to reach 70 percent of all U.S. households by 2012, according to the JupiterResearch report “U.S. Broadband Forecast, 2007 to 2012: LECs Maintain Advantage over Cable Operators in Quest for New Subscribers.” This 70 percent of U.S. households represents about 86 million homes.

Wider availability of high-speed service is expected to attract 36 million new subscribers to broadband by 2012. Price reductions will make DSL service more attractive, while higher transmission rates and bundled services will drive users to cable.

Dial-up service currently serves 33 million Internet users, though two-thirds or more narrowband Internet users could move to broadband service. The shift to faster Internet service is due to high-bandwidth applications such as video and rich media applications.

Leichtman Research Group based its findings on a random-digit-dial household survey of 1,600 respondents from throughout the U.S.

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