Report: U.S. Broadband Penetration at 53%, But Adoption Rate Slowing

Washington, DC -- U.S. broadband penetration continues to grow but at an
increasingly slower pace, according to a new report from the Pew Internet &
American Life Project. Broadband penetration increased just 3% in the first six
months of this year -- from 50%-53% of home Internet users -- compared with
an increase of 20% during the six-months ending in May 2004. The report cites
less "pent up demand" for broadband among Internet users, with a majority of
heavy Internet users already subscribing to a high-speed connection. About 60%
of dial-up customers say they don't want broadband, while new Internet users
accounted for just 4% of the online population in May 2005. About a third of
the U.S. adult population also reports not using the Internet at all. To entice
newer users, who are also more likely to be lower income households than
current broadband subscribers, many DSL and high-speed cable Internet
providers are engaged in competitive price-cutting. "The migration to
broadband is happening more slowly for dial-up users in 2005 than 2002," said
John Horrigan, Pew's director of research.
http://www.pewinternet.org/PPF/r/110/press_release.asp 
http://www.pewinternet.org/PPF/r/164/report_display.asp