URLwire
for Tuesday, June 22, 2004
| June
2004 Bandwidth Report: US Broadband Penetration Grows to 48.6%, Broadband
Households at 38% |
| . |
| The Bandwidth Report
is a monthly roundup of connectivity trends in the US and elsewhere. Each
month's bandwidth report offers the latest statistics in Internet connectivity
and broadband trends. |
| . |
US broadband penetration grew by 0.74
percentage points in May, with 48.61% of active Internet users enjoying
a high-speed connection at home. 51.39% of US home users dial into the
Internet with "narrowband" connections of 56Kbps or less.*
Meanwhile, the percentage of wired
US households with broadband grew to 38% in May, and will exceed 50% by
summer 2005. The charts below, derived from Nielsen//NetRatings and Leichtman
Research Group data, show trends in connection speeds to the Internet for
United States users and households.
Home Connectivity in the US:
As of May 2004, most users in the
US connect to the Internet using dial-up modems of 56Kbps or less. 42.53%
use 56Kbps modems, 6.52% use 28/33.3Kbps, and 2.34% use 14.4Kbps modems.
In total. 51.39% of home users in the US connect to the Internet at 56Kbps
or less (see Figure 1 at http://www.websiteoptimization.com/bw/0406/
).
Broadband Growth in the US:
Broadband penetration in the US
increased by 0.74 points in May. As of May 2004 broadband penetration was
at 48.61%, up from 47.87% in April. This jump of 0.74 points is below the
average increase in broadband of 0.79 points per month from October 1999
to May 2004. Extrapolating the data provided by Nielsen//NetRatings, broadband
share in the US should exceed 50% by July of 2004
(see Figure 2 at http://www.websiteoptimization.com/bw/0406/
).
Work Connectivity:
Most workers in the US enjoy high-speed
connections to the Internet. Most use a high-speed line such as a T1 connection,
and share bandwidth between computers connected to an Ethernet network.
The speed of each connection decreases as more employees hook up to the
LAN. As of May of 2004, of those connected to the Internet, 79.8% of US
users at work enjoy a high-speed connection, up from 79% in April. 20.2%
connect from work at 56Kbps or less (see Figure 3 at http://www.websiteoptimization.com/bw/0406/
).
Broadband Households versus Broadband
Users
Broadband penetration can be measured
in a number of ways. Two of the most popular are the percentage of broadband
users among "active" Internet users, and the percentage of wired households
that have broadband. One wired household can have a number of broadband
users, so the broadband user measure is invariably higher than broadband
households. To compare these two measures we asked Bruce Leichtman of Leichtman
Research Group, Inc. to provide some figures for broadband penetration
in US households
(see Figure 4at http://www.websiteoptimization.com/bw/0406/
).
Broadband Households versus Broadband
Users - 2002-2004 - US Homes
The data shows that while broadband
households and broadband users show similar growth trends, broadband households
will break 50% about a year after broadband users. We asked Leichtman how
he arrived at his data.
"Leichtman Research Group, Inc. (LRG)
bases its findings off of nationwide consumer research studies conducted
via telephone (to represent a representative cross-section of all US households).
This data is also analyzed in conjunction with our database of provider-side
research, as well as other sources - including the FCC.
LRG found that at the end of 2002
about 27% of US households that subscribed to an online service subscribed
to a broadband service. At the end of 2003 the share of online subscribers
getting broadband grew to 34%, and we forecast that by the end of 2004
this figure will rise to about 44%.
Note that these figures are based
on households subscribing to an online service at home, and do not double
count for those broadband households that also subscribe to a dial-up ISP
(about 10%).
These figures are confirmed by figures
from broadband providers along with the FCC. At the end of 2003 the FCC
showed that there were about 26 million residential and small business
broadband subscribers in the US (while the top 20 cable and DSL providers
reported 24.6 million subscribers). If we conservatively estimate that
10% of these are small business it would total 23.4 million households
subscribing to broadband at the end of 2003 - if this group represented
42% of all online subscribers that would imply that just 55.7 million households
in the US were online - or just 52% of all households. Our data shows that
62% of all US households were online at the end of 2003."
Further Reading
A Record 2.3 Million Add Broadband
in First Quarter of 2004
http://www.leichtmanresearch.com/press/051104release.html
Quarterly broadband uptake from
Leichtman Research Group shows that Comcast is leading Time Warner in broadband,
and cable is leading DSL by 62% to 38%.
FCC: Local Telephone Competition
and Broadband Deployment
http://www.fcc.gov/wcb/iatd/comp.html
Broadband penetration data by state
from the FCC.
Leichtman Research Group
http://www.leichtmanresearch.com/
Supplied the US broadband penetration
data for wired households in Figure 4 for the Bandwidth Report.
Nielsen//NetRatings
http://www.netratings.com/
Provides the US broadband data (percentage
of active Internet users) for the Bandwidth Report.
* Note that Nielsen//NetRatings reports
the percentage of active Internet users that use broadband from home, not
broadband households. NetRatings uses a panel of 40,000 to 50,000 people
with software meters installed on their computers. These meters detect
connection speeds. Each month they do an enumeration study to call a number
of people to calibrate the panel by adjusting weightings to match the population
at large.
About The Bandwidth Report:
The Bandwidth Report is a monthly
roundup of connectivity trends in the US and elsewhere. Each month's bandwidth
report offers the latest statistics in Internet connectivity and broadband
trends, including:
* Home Connectivity in the
US
* Broadband Growth in the
US
* Work Connectivity
* Broadband Trends in the
US, Canada, and other countries
The May 2004 Bandwidth Report is
available at:
http://www.websiteoptimization.com/bw/0406/
About WebSiteOptimization.com:
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