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.

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