Broadband Expansion

19 May 2003

New broadband numbers are in, and they give some mixed signals.

First, the good news. Last week, Leichtman Research Group put out numbers showing the first quarter was the fastest ever for broadband sign-ups, with 1.9 million added, putting the total at about 19 million. Earlier this month, phone giant Verizon Communications Inc. cut rates on its high-speed plans, which steps up price competition and could accelerate the pace of broadband sign-ups. By the end of the year, more than 20 million U.S. households, or around 20%, are expected to have a broadband connection, creating new markets for providers of broadband services.

But there are clouds darkening this sunny picture. Pew Internet & American Life Project released results of a survey early Monday that indicate many consumers that continue to use slower, dial-up connections aren’t terribly eager to move to broadband: About 57% of dial-up users polled told Pew they had no interest in upgrading to a faster home connection. Other numbers indicated that the percentage of long-term dial-up users interested in a broadband upgrade had shrunk since last year. [Wall Street Journal]

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