Monday, September 17, 2012

U.S. Fixed Network Broadband Adoption is 90%

New consumer research from Leichtman Research Group suggests that nearly 90 percent of U.S. households that use a laptop or desktop computer at home currently subscribe to a broadband Internet service.

Five years ago, 65 percent of households with a computer subscribed to a broadband service. That is a functionally reasonable indication that the fixed network broadband access business is saturated.

Some 91 percent of all households with annual incomes over $50,000 subscribe to a broadband service at home, compared to 68 percent of households with incomes of $30,000-$50,000, and 47 percent of households with incomes under $30,000.

The obvious implication for many will be that lower-income households want, but cannot afford, fixed network broadband. That is only partially true.

Keep in mind that 41 percent of households with annual incomes under $30,000 do not have use computer at home, compared to just three percent of households with incomes over $50,000. In other words, many lower income households simply do not use computers, so naturally demand for fixed network broadband is lower than it is for higher-income households. 

Annual Household IncomeUse a Computer at HomeInternet at HomeBroadband at Home
Under $30,00059%52%47%
Over $50,00097%97%91%

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