• by April 19, 2004

The pace of broadband adoption is quickening, according to the results of a survey by the Pew Internet and American Life foundation.

The Pew survey found that 55 percent of Internet users are using high-speed connections at home and are willing to pay $10 to $30 more per month for the privilege of speedy, always-on access. Many analysts say the sweet spot for broadband service in the home is around $30 per month. There are currently offers in the market for $29.99 a month service but most last for only six months as a promotion, before climbing to $49.99.

Interestingly, the Pew survey saw solid growth for digital subscriber line (DSL) service with DSL accounting for 42 percent of the broadband market, up from 28 percent last year. DSL is typically marketed via telcos.

Nielsen//NetRatings today offers a few interesting tidbits of its own with respect to broadband Internet growth and affluent Americans, which it pegs as the fastest growing income group online. Nielsen finds that consumers with total household incomes of $150K and above grew 31 percent since March 2003 to nearly 7.9 million people. Broadband users made up 69 percent of the total audience for those with incomes of $150K and above, compared to 31 percent accessing the Internet via dial-up.

Nielsen found that people with household incomes of $75K-$100K rose to 26.4 million in March, versus 20.7 million a year ago. Internet users with incomes ranging from $100K-$150K rose 24 percent since March 2003.

Not surprisingly, middle and lower income individuals gravitated to the broadband 'Net at lower rates. Nearly two-thirds of people with household incomes between $25K-$50K access the Web via dial-up, with just 36 percent logging on via broadband connections. Twenty-five percent of people with household incomes between $0-$25K access the Web via cable, DSL, or other high-speed method.

"Cost plays a tremendous part in Internet access patterns," said Ken Cassar, director of strategic analysis, Nielsen//NetRatings in a press release. "While broadband has become much less expensive over the past few years, it's still a significant cost as compared to narrowband."