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22 Sep 2005
The demand for broadband has slowed in the US, in a trend which could hit growth forecasts for British companies.
Research by the Pew Internet & American Life Project has shown that 53 per cent of home internet users in the US now use broadband, a modest rise from 50 per cent in December 2004.
This is a slower growth rate than in a comparable period a year earlier, when broadband penetration grew by 20 per cent from November 2003 to May 2004.
"The migration to broadband is happening more slowly for dial-up users in 2005 than in 2002," said John Horrigan, director of research at Pew Internet.
"Today's dial-up users are older, less educated and with lower incomes than their counterparts in 2002, all factors associated with tepid internet use.
"With fewer new internet users coming online these days, the stock of potential broadband subscribers is not being replenished."
This has serious implications for the UK market, which has recently reached broadband take-up of 50 per cent. If the US pattern is repeated, the growth estimates of some broadband companies would have to be revised.
According to the Office for National Statistics 55 per cent of UK homes have internet access.
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Do you agree?
$10.00 for dialup?!?
Google $6.50 dialup. We use it, and it is excellent. Anything else for internet is overpaying. I say that that is the value of having a connection to the internet. Any extra speed should be cheaper and cheaper to pile on as it goes up. I wouldn't want to get 1.5 Mbps at anything over $20.00, and I don't like having a dedicated phone line. *It's probably gonna be a while 'till we get broadband.
Posted by: Ethan A. 22 Oct 2005
what about the number of Inet users
Another thing, when the say it went from 50 to 53% of internet users, does that take into account whether the number of internet users went up or down. It doesn't seem to. That 3% change could actually be larger if the number of actual internet users grew too. mark B.James - p.s. actually the saying is "champing at the bit"
Posted by: mark 25 Sep 2005
It's the price
This is a person who has had broadband service and did enjoy it. But, could not justify the extra cost over dial-up. I can get satisfactory connection for $10 a month with a dial-up connection, but broadband is at least $40 a month. While I do miss the ability to be able to download large files from time-to-time, that is only occasional and I find that I can get what I want by ordering CD's if I'm a little patient. Otherwise, there really isn't that much on the Internet that requires broadband that interest me, most of the stuff that requires the higher speed is just commercials or cost extra money. It just doesn't seem worth the extra cost.
Posted by: rw 25 Sep 2005
Broadband growth through competition
Growth will return when prices will start hitting US$ 15 per month, as it has done in countries that have true competition in broadband access.
Posted by: Steven 24 Sep 2005
Broadband is Too Expensive
Broadband internet would be nice it's too expensive. For those who only use the internet occationally, $40+ a month is just too much. I have just received an offer from Bell South for $24.95 a month (and not just a for the first three months) for DSL which may attract many who have been holding out.
Posted by: Rick Hartman 23 Sep 2005
broadband service
could it be, broadband cost is too high concidering dialup is nearly as good at a lower price?
Posted by: ralph loudin 22 Sep 2005
Has demand really slowed?
As a former broadband user who moved to a rural area, I would willingly pay premium for good, reliable broadband. The only option to me is satellite.. and that is not an option.. So my question is, has demand really dwindled.. Or have the telcos simply decided not to invest for the next round of customers?
Posted by: Russell 22 Sep 2005
Broadband Demand
Keep in mind there are millions of dialup users who are "stuck" using dialup due to a lack of ability to switch to anything other than satellite-provided broadband. Many rural users are chomping at the proverbial bit, but density is too low and growth is too expensive for companies to expand service areas to reach more remote users. Demand isn't necessarily low.....availability is.
Posted by: B. James 22 Sep 2005
There is no real competition
From my point there is no real competition. Providers are only coming down very slowly and the offers they have are not really that great. It almost seems they have an agreement to keep decent service at around $40. Hopefully new technologies will increase the competition but I am not getting my hopes up that it will get any cheaper. Low income families will certainly think about $40 for this service.
Posted by: MW 22 Sep 2005