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Broadband Growth Strongest in $20,000 to $40,000 Households

Broadband adoption rates between 2007 and 2008 were highest among households with annual income between $20,000 and $40,000, according to new research by the Pew Internet and American Life Project.

The only income group to experience declining broadband penetration was the less-than-$20,000 income group, which includes college students as well as other lower-income households.

The other notable divergence from growth rates in the 15 percent to 24 percent growth rates were among households with annual income above $100,000, where four percent growth was the norm. It is probably fair to say that wealthier households largely have adopted already.

Microsoft Enters Consumer Software as a Service Business

Microsoft Corp. has unveiled Microsoft Equipt, an all-in-one security and productivity software subscription service for consumers. The new offering is a move by Microsoft into the software as a service business.

Microsoft Equipt is $69.99 (U.S.) estimated retail price for a one-year renewable subscription. Each subscription will be good for three home PCs.

Microsoft Equipt will be sold in nearly 700 Circuit City stores in the U.S. starting mid-July 2008.

Microsoft Equipt includes Microsoft Office Home and Student 2007; Windows Live OneCare, the all-in-one security and PC management service; Windows Live tools, such as Windows Live Mail, Windows Live Messenger, Windows Live Photo Gallery and so they can connect and Office Live Workspace, a new service from Microsoft that makes it easy to save documents to a dedicated online Workspace and share them with friends and classmates.

What's Up with AT&T's Satellite Deal?

You are free to take your pick: AT&T has terminated its current contract with Dish Network simply to negotiate better terms; or AT&T has done so because there is a real chance it might partner with DirecTV. Either thesis has some merit.

AT&T represents about 15 percent of Dish Network’s gross subscriber adds, so losing the deal would likely lead to negative subscriber growth for Dish in 2009. From AT&T's perspective, switching providers would entail some costs, as well, so the most-logical scenario is simply that AT&T will use the new competition to extract better terms from Dish.

It wouldn't be the first time a major supplier has been played as a card against an existing supplier. At the margin, some would argue, DirecTV offers a richer menu of on-demand and HDTV programming.

But a value-price argument can be made for either satellite provider. There are the switching costs to consider, of course. But there could be more going on under the surface than is apparent.

One never should discount what Liberty Media Chairman John Malone (Liberty Media has a controlling interest in DirecTV) might be thinking, strategy-wise. At his best, he is a move or two ahead of everybody else. I don't know whether that is a factor this time around, but anytime he does decide one of his assets has a strategic opportunity, one pays attention. He does.

Nationwide Sprint Femtocell Deployment?

Broadband Reports says Sprint is launching its "Airave" femtocell service nationwide on July 15, 2008. The in-home terminal reportedly will cost $1,000, and allow any Sprint mobile handset to communication over the fixed broadband connection attached to the femtocell box.

A single user can expect to pay $15 a month. Families can expect to pay $30 a month for unlimited domestic calling using the femtocell.

FTTH Milestone Reached

More optical fiber than cable modem high-speed connections turned up globally in the first quarter of 2008, say reserchers at Point Topic. That's the first time this has happened, Point Topic says.

While there were 2.5 million cable broadband subscribers added worldwide in the first three months of 2008, fiber connections grew by over 4.2 million net users.

“It’s a significant milestone for fiber optic broadband, where it is available consumers will take fiber over other broadband technologies,” says Oliver Johnson, Point Topic CEO.

“If you look at the cost per megabit then DSL comes in at around $20 per megabit per month taking global averages," says Johnson. "Cable does better at roughly $12 but they are both completely eclipsed by fiber where costs can get as low as 50 cents per megabit per month."

While there are sizeable variations from country to country, region to region and operator to operator, a rule of thumb is that DSL can cost the consumer more than 15 times as much as fiber to get a megabit of bandwidth and cable is seven times as expensive.

Of course, it's no surprise that the cost per megabit is lower with fiber than with any other access technology. Fiber's big advantage is bandwidth. All other things (overhead, construction, cabling cost, operations, maintenance) being roughly equal, fiber just supplies more bandwidth than a copper, coaxial cable or wireless access connection.

In U.K., 6% Mobile Internet Usage

About six percent of respondents to a recent survey undertaken by Point Topic say they now use mobile Internet services.

About 62 percent say they would. As you would expect, income matters. Mobile Internet usage is highest in the highest income segments; lowest i the lowest income segments.