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Sep29
Broadband Growth in U.S. Slowing Says Pew Report

A recent report from the Pew Internet & American Life Project, reveals that broadband Internet growth is going to struggle to grow quickly from now on.

Broadband penetration in the U.S. is expected to go over 50 percent this year, but many of those without access aren't seeing it as a necessity to pursue. In other words the demand isn't that great with the rest of the American population, and people without it now aren't pressuring anyone to provide it.

The report adds that even if prices are lowered and competition increases, it won't make much of a difference with existing consumers without the service.

Even if all the rural areas were to receive service, it wouldn't make much of an impact on the percentage of users in the U.S.

Pew%20and%20Closing%20the%20Broadband%20Divide.gifAnother factor is 29 percent of people with dial-up access at home have broadband access at work, possibly making their dial-up home connection enough for them. Of course the broadband work connection also may make the numbers higher as far overall users go.

A full 29 percent of Americans don't use the Internet at all, and seem in general to have no desire overall to change that.

From a marketing standpoint, many of the existing consumers without broadband have little disposable income and don't feel technology is that useful. So even if they do eventually get broadband, there wouldn't be a lot of motivation to market to them.

What this means for online marketers, is growth in the U.S. will be very slow, as far as broadband penetration goes. It'll increase, but at a very slow pace. That seems to mean that the existing online consumers will be the overall percentage we'll be marketing to in the U.S. with rich media for some time to come. It'll grow, but at a very slow pace.

Of course the good news is the United States still leads the world in overall broadband users, in spite of losing the percentage battle.


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