September 2005 Bandwidth Report by Web Site Optimization - US Broadband Breaks 60% among Active Internet Users, but growth slows - UK Broadband Penetration Nears 75% at Home

September 30, 2005 - Broadband penetration in the US broke 60% for the first time in August. In August 2005, U.S. broadband penetration jumped 1.4 percentage points to 61.32% among active Internet users. According to a recent study however, broadband growth in the US is slowing down. Meanwhile, 74.5% of wired Britons enjoy a broadband connection at home. The charts below, derived from Nielsen//NetRatings and Pew Internet data, show trends in connection speeds to the Internet for users in the United States.*

Home Connectivity in the US:

Home users in the US set a milestone in August, passing the 60% broadband penetration mark for the first time. Narrowband users (56Kbps or less) now comprise 38.68% of active Internet users, down 1.4 percentage points from 40.08% in July 2005 (see Figure 1).
(For the full “September 2005 Bandwidth Report” visit Web Site Optimization
http://www.websiteoptimization.com/bw/0509/

Broadband Growth Trends in the US

In August 2005, broadband penetration in US homes rose 1.4 percentage points to 61.32%, up from 59.92% in July. This is the first time broadband penetration has exceeded 60% in the US among active Internet users. This increase of 1.4 percentage points is above the average increase in broadband of 1.14 points per month over the last five months. At the current growth rate of over 1.1 percentage points per month, broadband penetration among active Internet users US homes should break 70% by January of 2006 (see Figure 2). This assumes that the broadband adoption rate will not decrease, as the report below concludes.
http://www.websiteoptimization.com/bw/0509/

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 August of 2005, of those connected to the Internet, 85.46% of US users at work enjoy a high-speed connection, up 3.82 percentage points from the 81.64% share in July. At work, 14.54% connect at 56Kbps or less (see Figure 3). http://www.websiteoptimization.com/bw/0509/

Broadband Adoption Slows in the US

According to a recent report by Pew Internet & American Life Project broadband adoption in the United States is slowing down. John Horrigan, Pew's Director of Research, compared national surveys of Internet users in 2002 to 2005. Horrigan found that the intensity of Internet use (a product of connection speed and years of online experience) drives the number of online activities people perform, which in turn drives the adoption of broadband (processing more bits). The two factors (speed and experience) vary in their influence of use over time. In 2002 both having broadband at home and Internet experience were significant factors in Internet usage. However, in 2005 only having broadband at home had a significant influence on intensity of Internet usage (see Figures 4 & 5). This implies that there is little pent-up demand for broadband at home. We talked to John Horrigan about his findings.

"We don't see a large influx of new Internet users in the U.S. anytime soon. 6% of the Internet's population are new users, and only 23% of them are on broadband, about half the overall rate. Current dialup users are less engaged in the Internet than past dialup users."

Dialup users today are older, less affluent, and less educated than their 2002 counterparts. With switching costs still high, today's dialup users are less likely to switch to broadband than they were in 2002. The report concludes that slowing broadband growth may add pressure on policymakers to take a bold approach (municipal wireless broadband networks for example) to catch up to leading broadband countries like Korea or Canada.
Drivers of Intensity of Internet Use - 2002

About The Bandwidth Report

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 September 2005 Bandwidth Report is available at:
http://www.websiteoptimization.com/bw/0509/

About Web Site Optimization

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