July 2005 Bandwidth Report by Web Site Optimization

FCC Fudging Broadband Figures?
US Broadband Penetration Jumps to 58.6% in June 2005

The FCC's recent broadband penetration report has critics wondering about its accuracy. Is the FCC fudging US broadband figures to avoid taking "immediate action" or artificially inflate penetration rates to help the President meet his stated goal of "universal, affordable access to broadband by 2007"? Only time will tell. Meanwhile, in June, U.S. broadband jumped 1.36 percentage points to 58.57% among active Internet users. Note that as of this month, the Bandwidth Report will track broadband and narrowband growth only using a new system of measurement. The new NetRatings NetSpeed report finds web connection speeds more accurately using additional parameters.* The charts below, derived from Nielsen//NetRatings data, show trends in connection speeds to the Internet for United States users.

Home Connectivity in the US:
Most active Internet users connect from home with broadband connections. As of June 2005, narrowband users (56Kbps or less) comprise 41.43% of active Internet users in the US, down 1.36 percentage points from 42.79% in May 2005 (see Figure 1).
http://www.websiteoptimization.com/bw/0507/

Broadband Growth in the US:
Broadband penetration in the US grew by 1.36 percentage points to 58.57% in June, up from 57.21% in May. Note that these figures are based on Nielsen//NetRatings new NetSpeed report, and are not directly comparable to our previous figures. Since we have only four data points from the new survey, we base our future broadband penetration rates on the previous month's data. Based on the growth rate we tracked until last month, broadband penetration among active Internet users in the US should break 60% by the third quarter of 2005 (see Figure 2). http://www.websiteoptimization.com/bw/0507/

Work Connectivity:
Most workers in the US enjoy high-speed connections to the Internet. Most use a high-speed line such as a T1 connection, and share bandwidth between computers connected to an Ethernet network. The speed of each connection decreases as more employees hook up to the LAN. As of June of 2005, of those connected to the Internet, 81.74% of US users at work enjoy a high-speed connection, up 0.25 percentage points from the 81.49% share in May. At work, 18.26% connect at 56Kbps or less (see Figure 3). http://www.websiteoptimization.com/bw/0507/

FCC Fudging Broadband Penetration Stats?

With the release of their recent broadband penetration report, the FCC is being criticized by a number of critics of fudging the figures. FCC chief Kevin Martin crows that the U.S. "leads the world in the total number of broadband connections with 38 million subscribers," and that we are "well on our way to accomplishing the president's goal of universal, affordable access to broadband by 2007." What he doesn't highlight is that the U.S. stands 12th or 13th in overall broadband penetration depending on who you listen to. In fact, the US is a generation behind leading countries in high-speed broadband adoption. Critics point to the facts that the FCC reclassified broadband as any connection over 200kbps and count any ZIP code as broadband enabled if just one resident is wired for broadband. Is the FCC fudging the figures to avoid taking "immediate action" or to help meet the administration's broadband goals?

Further Reading:

FCC Broadband Stats: Junk?
http://www.broadbandreports.com/shownews/65678
A number of critics are wondering whether the FCC's recent report on broadband penetration is accurate. Broadband Reports, July 26, 2005.

FCC Releases Data on High-Speed Services for Internet Access
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-259870A1.pdf
According to the FCC, high-speed connections to the Internet (defined as > 200kbps) increased by 34% in 2004, for a total of 38 million lines of service. Federal Communications Commission, July 7, 2005.

FCC Broadband Report Promotes Calls for Greater Penetration
http://www.phoneplusmag.com/hotnews/57h8103510.html
While the number of U.S. broadband Internet subscribers grew by 34 percent in 2004, some policymakers fear that increase is happening too slowly.

IDC Predicts 46% of Western European Households Will Have Broadband by 2009
http://idc.com/getdoc.jsp?containerId=pr2005_07_22_123254
"According to a new IDC study, broadband penetration in Western Europe will continue to surge in coming years. By 2009, 46% of Western European households will have broadband access, compared to 20% at the end of 2004."

Nielsen//NetRatings
http://www.netratings.com/
Provides the US broadband data (percentage of active Internet users) for the Bandwidth Report.

*Note that Nielsen//NetRatings reports the percentage of active Internet users that use broadband from home, not broadband households. NetRatings uses a panel of 40,000 to 50,000 people with software meters installed on their computers. These meters detect connection speeds. Each month they do an enumeration study to call a number of people to calibrate the panel by adjusting weightings to match the population at large.

About The Bandwidth Report
http://www.websiteoptimization.com/bw/

The Bandwidth Report is a monthly roundup of connectivity trends in the US and elsewhere. Each month's bandwidth report offers the latest statistics in Internet connectivity and broadband trends, including:

* Home Connectivity in the US
* Broadband Growth in the US
* Work Connectivity
* Broadband Trends in the US, Canada, and other countries

The July 2005 Bandwidth Report is available at:
http://www.websiteoptimization.com/bw/0507/

About Web Site Optimization
http://www.websiteoptimization.com/

Don't Make Me Wait! The new book titled "Speed Up Your Site – Web Site Optimization" by Andy King, and the companion web site are about designing "speedy" web sites with techniques that…

* Cut file size and download times in half
* Speed up site load time to satisfy customers
* Engage users with fast response times and flow stimulus
* Increase usability, boost profits, and slash bandwidth costs
* Improve search engine rankings and web page conversions

Andy King is also the founder of WebReference.com and JavaScript.com, both award-winning developer sites from internet.com. Created in 1995 and subsequently acquired by Mecklermedia (now Jupitermedia) in 1997, WebReference has grown into one of the most popular developer sites on the Internet. While he was Managing Editor of WebReference.com and JavaScript.com, Andy became the "Usability Czar" at internet.com, where he optimized the speed and usability of their sites. In addition to his consulting work, he continues to
write the monthly Bandwidth Report and the “Speed Tweak of the Week” for www.WebSiteOptimization.com.

Contact Matt Hockin at 503.246.1375 for an interview with the author or a review copy of Speed Up Your Site - Web Site Optimization http://www.interactivemarketinginc.com matt(at)interactivemarketinginc.com