eFiles: November 5, 2001

By eweek  |  Posted 2001-11-05

Consumers paint a pretty picture ...

Good news for enterprises with video and other broadband-specific applications on their Web sites. According to Jupiter Media Metrix Inc., in New York, 41 percent of wired U.S. households, or 35.1 million, will connect to the Internet over broadband by 2006. Thats up from just 5.2 million, or 9 percent of U.S. households, last year.

With the ability to connect at much higher speeds, broadband users are more likely than dial-up users to download music, watch video, conduct personal banking and execute stock-related activities online, Jupiter reports.

... but DSL will lag at least until 02

A growing number of end users will use DSL residential service to conduct those Web-based activities but not until next year and beyond. The market for digital subscriber line is actually expected to contract somewhat this year because of limited availability and high cost. The number of subscribers is expected to bottom out late this year and will be positioned for considerable growth through 2006 when prices drop and availability improves, according to a study by Cahners In-Stat Group, in Newton, Mass.

According to the study, the U.S. DSL residential base of broadband subscribers will reach 3.6 million by the end of this year and exceed 13.5 million by the end of 2005.

Until DSL really gains market share, cable modem access will remain the leader in the broadband access market through late 2004, Cahners reports.

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