Has Broadband Growth Stalled In The US?
from the reaching-saturation? dept
A new survey on broadband adoption in the US suggests that broadband adoption in the US may be leveling off, or stalling out completely as the numbers aren't all that different than they were at the end of 2007 (55% have broadband now, compared to 54% in December). Of course, there are a variety of different groups out there trying to measure broadband penetration in the US, and they all seem to turn up different numbers -- so these numbers shouldn't necessarily be taken as fact. The report suggests the economic situation may have something to do with it, though there appears to be a variety of reasons that factored into the decision of many not to sign up for broadband.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Filed Under: broadband, broadband penetration, us
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P.S. 1.5 mbps DSL is not really broadband anymore, I find it hard to believe anyone is able to view most websites without a 5+ minute wait with dialup these days - but if DSL were to go up past $20 for 1.5mbps, I would drop it also.
Also since gas prices have been going up and up, food costs and many other goods have doubled. Who can afford it anymore?
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Recipe for failure
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Around here
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Consider that ISP's, Telecoms, Cable companies come into an area and "purchase" huge sections of an area (in fact some purchase the whole city like Houston, TX where I live). They buy the rights to be the sole internet provider in the area and no other company can offer anything else.
So, for my area, if Comcast decides the fastest I can get is 8 megabits for $60 - 80 then that's the fastest I can get, even though FiOS is available 300 miles away in Dallas at 15 - 40 Megabits for half the price.. It really sucks.
So because of the greed factor of American businesses, broadband acceptance has slowed to a crawl and with these exclusivity deals that ISP and telecoms are allowed to 'Buy' forcing out the competion in large areas and then jacking up the price of their higher speed plans etc... Broadband in the US is a joke.
Additionally, in every area of the US where competition is taking place it is quite evident that broadband acceptance is flourishing. For example in areas where Verizon FiOS is offered, Comcast has implemented 16Mb plans to compete. In areas like mine where Comcast is the only gig in town we are stuck with what they want to give us. But in Europe where competition is huge, there are areas where customers have 12, 20, 30 and I read one report of a company offering 60 MB plans at the equivalent of $50 USD a month. So at the end of the day, it is the American greed factor that is hurting the broadband growth and as a consumer I absolutely hate it.
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Let's hear it for coffeehouses and the library.
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Demand
I am somewhat sick that streaming video has become the norm for spreading info. I can read a text transcript of a presentation in one third of the time it takes to speak it. Yet I am forced (or coerced) into wasting time watching presentations from TED that I could consume in minutes in text. I've arrived at the point where I hit "back" immediately every time I touch a link that leads to a video.
And don't get me started about "internet memes."
It's just like highways. The traffic will expand to fill the extra capacity and it's soon just as clogged as it was before.
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Competition
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*offer only available in selected areas, subject to review, may be canceled at anytime
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Bogus Broadband Stats
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Fact vs. fiction
The statement that growth has stalled in 2008 YTD is not emphasized in the report, and is probably a mis-reading of the line graph (the nine-month period from 3/07-12/07 is represented with the same range on the x-axis as the 4-month period from 12/07-4/08). It looks like the slope has flattened in 2008, but this is just because the graph is non-linear in the x-dimension.
Here is the actual text of the article: "The rate from March 2007 to April 2008 was 17%; this compares to the 12% growth rate from March 2006 to March 2007. It is also worth noting that the April 2008 number for broadband adoption at home is little changed from the 54% figure from the Pew Internet Project’s December 2007 survey."
The "also worth noting" clause is insignificant since the previous samples were taken annually, and we are given no information about the seasonality of the trend. I would guess that broadband growth is more prevalent in the fourth quarter when students start school and new computers, gaming systems, etc. are purchased as gifts.
Seasonality speculation aside, even if there was a slowdown in early 2008, the annual growth rate including this 'slow' period accelerated 42% (from 12% to 17%) compared to the previous year.
The main counter-trend that the article discusses is the flat-to-negative growth in low-income households.
EG
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Terms of Service
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Stalled ?
model thats being used is milking the most from Americans while providing the least. In my market we have both cable and telco broadband. The cable company offering bundles tv,broadband and phone. The telco offered phone,cellular and broadband. It should also be noted that the telco in my market blocks certain ports in order to encourage the purchase
of comercial packages. Price is comparable. Most use cable. I hear that the telco now offers tv but I don't see a mass exodus to them. The US cellular industry is equally stunted.
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