Broadband use growing, survey finds

cablewithaview

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When Americans go online at home, three out of five now take the fast lane, according to a survey to be released Thursday by Nielsen/NetRatings.

In August, more than 61 percent of American visits to the Internet were connected by broadband, which includes cable modems, digital subscriber lines and some satellite and fiber connections, Nielsen found. That's up from about 51 percent a year earlier.

Broadband adoption has become an important measure in recent years. Many new technologies, such as Internet telephone service, require broadband speeds to operate. Local phone companies SBC Communications Inc. and Verizon Communicatons Inc. are spending billions to upgrade their networks with fiber to deliver video and broadband to homes.

"Continuing increase in broadband use is an essential step in a maturing industry," said Charles Buchwalter, Nielsen vice president of client analytics. "Compared with their narrowband counterparts, broadband users spend more time and money online."

Nielsen's survey found that 42 percent of all Americans now have access to broadband at home, up from 36 percent in January. It credited a price war for DSL service for aiding the jump.

"Over the last year, carriers have responded to the growing demand for lower-cost broadband," Buchwalter said. "All indications are that this trend will continue."

Concerned that cable modems are more popular than DSL, SBC this year introduced a basic DSL service for $15 a month. Verizon followed suit during the summer.

Phone companies hope that once customers try the $15 service, they will want faster DSL at higher prices. Cable companies have been raising the speeds offered by cable modem service while keeping monthly charges in the $40 to $50 range.

Traditional dial-up Internet access is in decline as broadband popularity grows. In August, Nielsen counted 86 million broadband Internet connections, which was up 34 percent over August 2004. It counted 54 million dial-up visits, down 10 percent from a year earlier.

Nielsen's data show that about 30 percent of Americans don't have a home Internet connection of any kind, a rate that has remained flat for the year.

Wireless phone companies are also upgrading their technology to deliver data at speeds that are comparable to DSL.

Most analysts expect America's embrace of broadband to continue, but at what rate is uncertain. A report released last week by the Pew Internet & American Life Project suggests that high-speed Internet adoption is slowing.

The Pew project's data indicate that a large group among the people now relying upon dial-up connections doesn't use the Internet much and may be disinclined to make the leap to broadband.

"The migration to broadband is happening more slowly for dial-up users in 2005 than in 2002," said John B. Horrigan, Pew Project research director. "Today's dial-up users are older, less educated and with lower income than their counterparts in 2002. These are all factors associated with tepid Internet use."
 

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