Wednesday, July 11, 2007

Broadband land-grab slowing - report

THE broadband land-grab among internet service providers has slowed dramatically in the US, with the market’s “low-hanging fruit” already picked.

A report from the Pew Internet & American Life Project says 47 per cent of all adults in the US now have access to broadband internet in the home, compared to just 30 per cent in late 2005.

From mid 2005 to mid-2006, the broadband market grew by 40 per cent as middle-income earners and older age groups acquired home broadband connections.

But from mid-2006 to mid-2007, the growth rate was just 12 per cent. While middle-income and older age groups continued to show increases in home broadband usage rates, growth was much slower than in the past.

“The moderate growth in home high-speed adoption from 2006 to 2007 is partly a reflection of strong prior-year growth; the low-hanging fruit was picked in 2005,” said Pew Internet & American Life project associate director of research and author of the report, John Horrigan.

“Luring remaining hard-to-get adults to home broadband is likely to involve showing them the relevance of online content,” Mr Horrigan said.
The Pew Internet Project is a non-profit, non-partisan initiative of the Pew Research Center that produces reports exploring the impact of the internet on children, families, communities, the work place, schools, health care, and civic/political life.

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