The growth of broadband Internet access in the US slowed in the
first half of 2002, with only 27% more lines installed in that
period compared with a 33% gain in the second half of 2001,
according to the US Federal Communications Commission (FCC).
High-speed Internet connections - defined as Internet connections
that provide service to homes and businesses at speeds higher than
200Kbps (bits per second) in at least one direction - continued to
reach more parts of the country, with subscribers in 84% of the
nation's zip codes, compared with 79% six months earlier.
However, the growth rates for deployment of both ADSL (Asymmetric
Digital Subscriber Line) and coaxial cable-based connections, have
shrunk.
The slowdown was sharpest for ADSL, which grew 29% in the period to
5.1 million from 3.9 million lines. In the previous period, ADSL
lines had grown 47%. Adoption of cable broadband also slowed from
36% to only 30%. In the first half of 2002, cable broadband lines
increased to 9.2 million from 7.1 million.
The country's weak economy probably was the biggest factor
inhibiting broadband growth in the period, according to Gartner
networking analyst David Neil. The cost of broadband in the US
ranges between $40 (£25) and $50 (£31) a month.
"Everybody has just been very careful about the money they've been
spending. If you're not using it for business purposes, it's a big
chunk of change to justify," Neil said.
Another factor holding back broadband adoption is that potential
customers have heard horror stories about setup problems, he added.
Although setup seems to have improved since the early days of
broadband, negative perceptions linger.
ADSL in particular has been held back partly by the relatively slow
expansion of services to reach more customers, Neil said. Carriers
may want to offer broadband to more customers but they are now
strapped for cash.
Lack of awareness also plays a part, he added. Potential broadband
customers who once called the local carrier and were told ADSL was
not available to them yet may have turned to cable, or given up on
broadband all together.
Consumers' Internet habits, such as surfing the Web and buying
books or travel products online, will drive them toward broadband
as they get frustrated with waiting for dial-up connections.
At the same time, broadband was, increasingly, found in areas with
lower incomes and less population density, according to the FCC.
With zip codes ranked by median household income, broadband
subscribers were found in 69% of the bottom one-tenth of zip codes,
compared with just 59% in June 2001.
Of zip codes at the top of the income scale, 98% were broadband
subscribers. There were subscribers in half of the least densely
populated zip codes, compared with 37% in June 2001. Broadband was
in use in 99% of the most densely populated zip codes.