28% of rural Americans without broadband say broadband is not available where they live

28% of rural adult Americans without home high-speed say broadband isn’t available where they live, in contrast to 22% of non-rural Americans without broadband who say this. Moreover, 24% of dial-up users in rural areas say having the service available where they live would prompt a switch to broadband; this compares to the 14% figure for all respondents, according to the Pew Internet Project.

US broadband adoption in 2005, 2006, 2007, and 2008

Americans with broadband at home 2005 2006 2007 2008
Yearly adoption
All adults 33% 42% 47% 55%
Gender
Male 31 45 50 58
Female 27 38 44 53
Age
18-29 38 55 63 70
30-49 36 50 59 69
50-64 27 38 40 50
65+ 8 13 15 19
Race /ethnicity
White (not Hispanic) 31 42 48 57
Black (not Hispanic) 14 31 40 43
Hispanic (English speaking) 28 41 47 56
Educational attainment
Less than high school 10 17 21 28
High school grad 20 31 34 40
Some college 35 47 58 66
College + 47 62 70 79
Household income
Under $20K 13 18 28 25
$20K-$30K 19 27 34 42
$30K-$40K 26 40 40 49
$40K-$50K 28 47 52 60
$50K-$75K 35 48 58 67
$75K-$100K 51 67 70 82
Over $100K 62 68 82 85
Community type
Urban 31 44 52 57
Suburban 33 46 49 60
Rural 18 25 31 38
Source: Pew Internet Project

US broadband users pay $34.50 a month on average

Home broadband users reported that their monthly payment for internet service was $34.50 – 4% less than the figure of $36 per month reported in December 2005.2 This decline in monthly broadband bills is half the rate (8%) reported over the February 2004 to December 2005 timeframe. As in 2005, there is a gap in what people pay for cable modem service compared to DSL, although it is narrower today than a few years ago. In December 2005, cable modem users reported monthly bills of $41 for service, while DSL users said they paid $32 per month for service. In May 2008, DSL users reported monthly internet access bills of $31.5 and cable modem users said they paid $37.5 for service, or an average difference of $6, according to the Pew Internet Project.

75% of home high-speed users said faster access or greater speed as advantage of broadband connection. Other uses cited as the feature valued most included the “always on”‘ connection (cited by 6% of broadband users), convenience (5%),broadband connectioneducational materials (2%). This is not to say that broadband users don’t value specific applications listed above (and others such as gaming and entertainment) that a high-speed connection enables. When pressed as to what might lure them into the ranks of home high-speed users, a plurality of dial-up respondents cited price. 35% of dial-up users said that they would switch to broadband if the price became more affordable and, as noted above, there remains a sizable gap in what dial-up users pay monthly for online access and what broadband users pay.

Internet traffic up 53% in the last 12 months

According to TeleGeography, international Internet traffic grew 53% between mid-2007 and mid-2008, down from 61% the preceding year. Traffic growth between the US and Latin America was especially fast, surging 112%. Traffic on internet backbones between major cities in the relatively more mature US market rose a modest 47%. For the 2?? consecutive year, total international Internet capacity grew faster than total Internet traffic, leading to lower utilisation levels on many internet backbones. Between 2007 and 2008 average traffic utilisation levels decreased from 31% to 29%, while peak utilisation fell from 44% to 43%.

39% of US households will rent videos online by 2012

By 2012, Research & Markets forecasts that 90% of US households will have access to broadband, with 94% of these individuals watching online video—this is up from an estimated 77.8% of broadband users in 2008 watching online video. Worldwide online video revenue is expected to eclipse $4.5 bln by 2012. By 2012, 39% of adults in the US are expected to have purchased or rented online video. 42.8% of US respondents to this survey still favor physical discs with packaging when purchasing movies. By 2012, the company anticipates the online video market to eclipse $4.5 bln, growing from $1.2 bln (CAGR of 39%) in 2007.

323 mln broadband users in 2007, 499 mln by 2012

Worldwide consumer broadband connections will grow from 323 mln connections in 2007 to 499 mln in 2012, according to Gartner. Worldwide consumer broadband connections penetrated 18% of households in 2007, and by 2012, households with a broadband connection will reach 25%. Five countries exceeded 60% broadband penetration into the home in 2007; and, this is expected to grow to 17 countries by 2012. The five countries with broadband penetration into the home above 60% are Canada, Netherlands, Switzerland, South Korea and Hong Kong.