• by April 19, 2001

With rocket-like speed, it has taken less than a decade for ISP services to find a place in over half of all U.S. households, according to Cahners In-Stat Group.

However, the high-tech market research firm predicts that this pace of growth will slow over the next five years as the number of households interested in these services continues to shrink.

Despite strong forecasted growth in broadband access by In-Stat, most households will still be using dial-up access in the year 2005.

"By the year 2005 there will still be just as many households without Internet access, as those using cable modems or DSL," said Daryl Schoolar, senior analyst with In-Stat's ISP Service.

As a result, consumer ISPs will still find a significant portion of their revenues coming from dial-up access. ISPs will not be able to afford to turn their backs on dial-up consumers altogether as they will continue to make up a substantial share of the market. These providers will find their future growth potential in migrating dial-up users to broadband access.

The higher access fees associated with broadband will help to continue to grow ISP revenues.

Cahners In-Stat Group research also identifies the following consumer ISP trends:

-- 30% of U.S. households state that they still have no need or desire for Internet access.

-- Email is the number one use for Internet access in the home.

-- AOL continues to be the market leader in consumer ISP services.