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Research and Markets: Broadband Services Markettrack

DUBLIN, Ireland--(BUSINESS WIRE)--July 30, 2004--Research and Markets (http://www.researchandmarkets.com) has announced the addition of Broadband Services Markettrack to their offering.
Current Analysis Broadband MarketTrack is a quarterly study on the U.S. broadband industry, including statistics and analysis surrounding subscriber growth trends, pricing and promotions, product launches, and regulatory events. It also includes profiling and analysis of key Service Provider strengths and weaknesses in the North American market. This study covers Q2 2003.Market Overview After years of hype, the broadband industry is today finally approaching a critical mass of penetration into U.S. households. At the end of Q2 2003, there were 22.1 million broadband subscribers in the U.S., 20.2 million of which are consumer households, for a penetration rate of 19%. However, some 85% of the nation's 105 million households have access to some form of broadband service (that number rises to close to 100% when factoring in satellite broadband service), yet only 19% actually subscribe to broadband. It is clear that the industry has reached a point where slower than expected adoption rates have become a problem of demand rather than one of supply. High monthly fees for broadband services - which are only now starting to come down - and the lack of compelling online content requiring a high-speed connection are the biggest factors behind the lack of strong demand for broadband among the nation's consumers.Market Size The nationwide broadband market at the end of Q2 2003 stood at 22.1 million subscribers, an 8% increase from the end of the first quarter. Cable providers continue to dominate the industry, controlling 61% of all broadband subscribers, although that position is down from a high of 70% three years ago. Of the five major DSL providers (the four Rbocs and Covad), SBC has established itself as the DSL market leader, having added more new subscribers in Q2 than the other four combined.Consumer Pricing Trends Overall consumer broadband Internet service rates have fallen steadily from their highs in 2001, with DSL now actually less expensive than cable after years of being much more pricey. Cable broadband service prices dropped 0.9% in the second quarter, from an average of $43.26 per month at the end of Q1 to an average of $42.87 per month at the end of Q2. Standard Adsl monthly prices decreased 2.5% over the same time period, from an average of $43.34 at the end of Q1 to an average of $42.24 at the end of Q2. These average prices take into account broadband promotional incentives that take the form of free or discounted months of service (i.e., the first three months for $19.95 a month) and free modem rental.Broadband Promotions On a positive note for consumers, broadband providers have dramatically increased the number of promotional incentives available for new subscribers over the past couple of years. Of the nation's consumer broadband providers 76% now offer new customers some form of installation promotion, be it a rebate for installation charges, free installation, or some type of self-installation kit, while 76% also offer free or discounted months of service.

This report contains detailed analysis and discussion under the following headings:

Table of Contents

1. Executive Summary
2. Broadband Subscriber Growth & Provider Market share
3. Broadband Pricing Trends
4. Broadband Promotional Trends
5. Broadband Product Trends
6. Industry Consolidation
7. The Regulatory Environment
8. Service Provider Profiles & Analyses

For more information visit http://www.researchandmarkets.com/reports/c3358

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Research and Markets
Laura Wood
Senior Manager
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Fax : +353 1 4100 980

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