Dial-up Users Hear Broadband's Call

03/15/2004

The number of people using broadband to access the Internet in the US continues to grow, with 7.4 million additional cable and DSL subscribers signing up in 2003, according the Leichtman Research Group (LRG).

Leichtman found that the twenty largest cable and DSL providers -- whose services account for 98% of the broadband market -- added about 4.5 million cable and 3.0 million DSL subscribers in the past year. This brings the total number of US high-speed Internet subscribers at the end of 2003 to 24.6 million.

The large number of additions was no doubt partially based on the defection of users from narrowband to broadband. eMarketer projects that the number of dial-up households in the US will decline by 9.7% between 2003 and 2003, while total broadband households will grow by 21.8%. A Parks Associates study from the summer of 2003 indicated that many narrowband subscribers are likely to switch to higher speed connections, and probably did in the second half of 2003.

Leichtman found that 30% of the narrowband subscribers they surveyed are interested in switching to broadband, and that broadband users are more satisfied with their service than narrowband users, which is probably a major reason for the defection of low-speed customers to high-speed.

Source of Article: eMarketer

Date of Article: March 15, 2004