U.S. Broadband To Reach 86 Million Households

    May 29, 2007

Around 86 million U.S. households will have broadband Internet access by 2012 according to a new report from JupiterResearch.

U.S. Broadband To Reach 86 Million Households
U.S. Broadband To Reach 86 Million Households

The report "US Broadband Forecast, 2007 to 2012: LECs Maintain Advantage over Cable Operators in Quest for New Subscribers" says that because of high-speed service there will be close to 36 million new broadband subscribers in the next five years.

"Price reductions are responsible for driving take-rates for DSL services offered by the incumbent local exchange carriers, while higher broadband transmission rates and attractive bundles are driving consumer adoption of cable modem service," said Doug Williams, Analyst at JupiterResearch.

"As broadband becomes more attractive to consumers from an economic perspective, current dial-up users will be more likely to migrate to broadband service, and consumers who are new to the online population will never take dial-up service in the first place."

JupiterResearch estimates that the 33 million dial-up Internet households will drop by more than two-thirds by 2012 but that the market for dial-up service will not totally disappear.

"Despite moderating growth for broadband services, significant market opportunities for broadband service providers still exist," said David Schatsky, President of JupiterResearch.

"Cable operators and local exchange carriers will remain the key market participants, while alternative broadband service providers will continue to struggle to integrate into the mass market."