Commentary

High Speed Internet in 60% of Online Households

High Speed Internet in 60% of Online Households

According to new consumer research from Leichtman Research Group (LRG), 69% of all US households now subscribe to an online service at home, and high-speed Internet services now account for about 60% of all online subscribers.

Overall, cable remains the most common source for residential broadband driven by its strength among higher income households. But DSL now has a greater market share than cable among middle income households. Based on a telephone survey of 1,600 randomly selected U.S. households:

  • Thirty-seven percent of all households with annual household incomes over $75,000 subscribe to cable broadband and 27% subscribe to DSL
  • Among all households earning $30,000-$75,000 per year, 21% subscribe to DSL and 18% to cable

Other key findings include:

  • The mean annual household income of cable broadband subscribers is 12% higher than their DSL counterparts
  • The mean income of broadband subscribers is 35% greater than narrowband/dial-up subscribers
  • 40% of current narrowband/dial-up subscribers are interested in getting broadband
  • 80% of all US households have at least one computer, but just 58% of those with annual household incomes under $30,000 have a computer at home

LRG forecasts that by the end of the year 2010, there will be over 105 million residential online subscribers in the US, with over 80% subscribing to broadband.

Top Broadband Internet Providers in the U.S.

Broadband Internet Provider

Subscribers at end of 1Q 2006

Net Adds in 1Q 2006

Cable

Comcast

8,957,000

437,000

Time Warner

5,168,000

346,000

Charter

2,322,400

126,000

Adelphia

1,808,004

100,554

Cablevision

1,806,623

112,289

Insight

514,800

44,400

Mediacom

504,000

26,000

Cable One

253,059

18,959

RCN

249,000

5,000

Major Privately Held

Companies

4,190,000

191,700

Total Top Cable

25,772,886

1,407,902

DSL

AT&T

7,432,000

511,000

Verizon

5,685,000

541,000

Bell South

3,145,000

263,000

Qwest

1,678,000

180,000

Embarq

777,000

84,000

Covad

556,950

(10,225)

ALLTEL

441,475

43,779

CenturyTel

285,791

37,085

Cincinnati Bell

171,000

8,500

Total Top DSL

20,172,216

1,658,139

Total Broadband

45,945,102

3,066,041

Sources: The Companies and Leichtman Research Group, Inc. Some figures are adjusted from prior quarters to account for system sales and acquisitions

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