U.S. Lags In Broadband Adoption Despite Demand For VoIP, IP Video: Report

Survey finds 50% of U.S. households will subscribe to broadband access by 2006, with shift to much higher broadband rates.

December 16, 2004

1 Min Read
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New IP services such as VoIP and IP video are driving the push to higher broadband adoption, and 50% of U.S. households will subscribe to broadband access by 2006, according to a report from Technology Futures, Inc. (TFI). Despite this, the U.S. lags a full generation behind countries such as Japan and Korea in broadband acceptance and use, it adds.

By 2006, the report says, there will be a shift toward much higher much higher broadband data rates, in the range of 24 Mbs to 100 Mbs. By 2010, it adds, U.S. broadband penetration of 75% is likely, and 10% to 20% of U.S. households will subscribe to very high-speed-broadband services. This shift to broadband will make most of the local exchange carriers current investment in copper cable obsolete, the report concludes.

The report claims that leading broadband countries, including Japan and Korea, are a full generation ahead of North America in broadband adoption and use. Japan and Korea are already rolling out the new generation of broadband services operating at 20 Mbs and above, and have plans to complete the transition by 2010, it says.

Driving broadband adoption in the U.S. are new services such as VoIP and IP video, as well as the growing use of large email attachments such as family photographs, and Web sites being increasingly designed for broadband.

"Our forecasts for higher bandwidths reflect the general tendency for bandwidth demand to increase along with computing power and memory," said TFI President Lawrence K. Vanston in a statement. "They also reflect the demand for specific services such as IP video that require more bandwidth."

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