89% of Americans with income over $75,000 subscribe to broadband

89% of all households with annual incomes over $75,000 subscribe to a broadband service – compared to 70% of households with incomes of $30,000-$75,000, and 37% of households with incomes under $30,000. 38% of households with annual incomes under $30,000 do not have a computer at home, and only half of households in this income group subscribe to any type of Internet service at home. 67% of broadband subscribers are very satisfied with their service – while just 4% are not satisfied. 29% of broadband subscribers are very interested in receiving faster Internet access at home – while 37% are not interested. Overall, 3% of Internet subscribers say that broadband is not available in their area, Leichtman Research says.

Internet connections mostly fail on users 50-64-years-old

All demographic groups are about equally likely to have certain devices fail them, though seniors who own cell phones are significantly less likely than younger cell phone owners to have problems with their cell phones. Just 18% of cell phone owners 65 years old and older reported that their cell phones had failed in the past year, while 26% of 50-64 year olds, 33% of 30-49 year olds and 30% of 18-29 year olds reported cell phone problems. Seniors are not as exclusively reliant on their cell phones as younger owners, and so they may have less wear and tear on their phones than do younger users who are more likely to experience cell phone failure. Significantly more seniors than 18-49 year olds who own cell phones also have landline phones at home. Fully 79% of senior cell phone owners also have regular phones, while just 30% of 18-29 year olds and 52% of 30-49 year olds have both types of phones.

  % 18-29
year old
% 30-49
year old
% 50-64
year old
% 65+
year old
Home internet users to have HOME INTERNET
CONNECTION fail
43% 45% 46% 37%
Computer owners to have COMPUTERS fail 39 40 38 35
Cell phone owners to have CELL PHONES fail 30 33 26 18
Source: Pew Internet Project

How Americans fix their broadband connection issues

When a home internet connection fails, broadband may be trickier to fix than dial-up without help from customer support. Based on those who reported a failed home internet connection, broadband users were much more likely to seek user support for help (49% v. 27%). The problems, however, were equally likely to be fixed, with just 6% of dial-up users and 7% of broadband users unable to fix the problem.

  % Broadband % Dial up % Total
Contact user support for help 49% 27% 45%
Fix the problem yourself 24 39 27
Fix the problem with help from
family/friends
15 17 15
Find help online 2 6 2
Were NOT able to fix problem 7 6 7
Source: Pew Internet Project

35 mln cellular modems shipped in 2008

Shipment data for the cellular modems used to connect laptops and netbooks to the Internet indicate that more than 35 mln of the devices hit the market in 2008. Of that total, the majority were the external USB modems that mobile operators have been pushing for some time. Continued growth has been bolstered as mobile operators have bundled USB modems with netbooks in attractively subsidized price plans. A further 3.5 mln were embedded modems, built into the computers, ABI Research found.

635 mln broadband users in 40 countries by 2013

As the total number of broadband lines in the world passes 400 mln, Point Topic forecasts that the total in the 40 biggest broadband countries in the world will grow from 393 mln by the end of 2008 to 635 mln by 2013. Broadband in the rest of the world will grow from 16 mln to 48 mln lines in the same period, so the world will add 273 mln lines to reach 683 mln in total. This represents a 10.8% per year compound growth rate, well down from 27.7% per year in the 2004 to 2008 period, but still substantial. One major reason for the slowdown in growth is that most of the richer countries are approaching saturation with broadband; new customers are becoming harder to find and sign up. At the same time poorer countries such as China and India have gone through the initial phase of rapid growth and are now growing steadily rather than exponentially.

Looking five years ahead, China is forecast to be well in front as the biggest broadband country, with 153 mln broadband lines against 117 mln in the USA. In fact China is expected to be already ahead of the USA by the end of 2008. India and Brazil are also expected to enter the Top 10, but Russia is forecast to be just outside at number 11. The story with broadband take-up – the%age of broadband lines per 100 population – will be rather different. Here Sweden, Germany and the USA are expected to be the biggest gainers as they start closing the gap with similar countries. Germany, which has been rather lagging in broadband until recently, is expected to gain most of all, increasing take-up from 26.4% to 42.4%. Denmark is expected to remain the most broadband-intensive major country, going from 37.0% to 46.3% take-up.

Korea’s fiber penetration reaches 12.2%

Korea had 12.2 fiber-optic connections per 100 inhabitants in June 2008, compared with 10.5 cable broadband connections, and 8.4 DSL connections. The fiber penetration rate jumped from 10.4% in the previous OECD survey in December 2007. Japan has a fiber penetration of 10.2%, followed by DSL with 9.6% and cable with 3.1%. The only country to come close to Korea and Japan is Sweden with six fibre-optic broadband connections per 100 inhabitants.

China overtakes US in broadband

Both the USA and China had about 78 mln broadband lines at the end of August, but China grew twice as fast. In the USA, new broadband lines added fell from 3.4 mln in the last quarter of 2007 to barely 1.1 mln in Q2 2008. In China they rose from 3.5 mln to 5.0 mln in the same period. By the end of June 2008 Point Topic’s data shows the USA had nearly 76.9 mln broadband lines but China was less than 900,000 behind on 76.0 mln. The gap was less than the number China added in July alone, 1.14 mln according to Chinese official figures.

China overtakes United States in broadband

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.

US cable companies added 1.19 mln new broadband subscribers in Q1 2008

Largest cable companies in the US added 1.19 mln broadband subscribers in Q1 2008, according to Leichtman Research Group. Phone companies added 1.01 mln DSL customers in Q1 2008. Since Q3 2004, phone companies had been adding subscribers faster than cable, closing in on cable’s lead in total subscribers. But that lead is now widening, with cable companies having a total of 34.7 mln subscribers compared with 29.5 mln at the phone companies.