Broadband
US demand for high-speed internet access is showing only modest growth

US broadband take-up slows to a crawl

Worrying news for UK suppliers

Iain Thomson

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.

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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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