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Consumer Broadband Evolution, Not Revolution

In a recent pair of reports, In-Stat/MDR reveals that pent-up demand for broadband is alive and well. The Scottsdale, Ariz.-based high tech research firm forecasts that nearly one out of every four online households will subscribe to a broadband services by the end of this year.

Specifically, digital subscriber line (DSL) broadband services will grow by 3 million installed lines to a total of 7.6 million subscribers in the U.S. by the end of 2002, with approximately 80 percent of those lines serving consumer households.

For service providers looking to generate more revenues from their consumer customer base, it is important for them to increase broadband penetration. However, service availability is no longer the greater inhibitor to broadband growth.

In a recent survey of consumers, In-Stat/MDR found that service price and lack of compelling applications are the main reasons cited by dial-up users as to why they don't plan to get broadband service. Yet, interactive gaming with it's captivating and intensive, high-speed Internet-friendly video games, promises to continue to drive demand for DSL broadband connections.

The report, The Evolving Broadband Household is based on a survey of nearly 1,000 U.S households, and examines where service provides have and haven't been successful selling broadband service.

In-Stat/MDR also found that:

At the end of 2001 just over 58 percent of all U.S. households subscribed to an Internet access service. This includes both dial-up and broadband.

Bundling of incumbent local exchange carrier (ILEC) services promises to provide a boost to DSL uptake, with projections of 10 percent or better through the end of the year, which will certainly aid in meeting the projected number of installed subscribers for 2002.

New G.SHDSL (Synchronous High Bit Rate DSL) designs, which have now been standardized by the industry, began testing during the third quarter of 2002. This new DSL standard promises to close the gap between T-1 and T-3 high-speed broadband access, bringing affordable 10 Mbps service to subscribers.

The report, Virtual Truck Rolls Drive the US Residential DSL Market, focuses on the growth of DSL in the U.S. It includes an overview of the DSL market, recent advancements in DSL technology, an update of DSL through the last quarter, market trends, and an analysis of competing technologies.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier, which operates in the science and medical, legal, education and business-to-business industry sectors, provides research and information solutions to professional end users.