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U.S. Broadband Penetration To Hit 50 Percent

4/23/2007 02:00:00 AM Eastern

Household penetration of broadband service will exceed 50 percent in the United States this year and the research firm iSuppli sees continued growth in broadband equipment revenue as ISPs make fiber optic-based services more widely available.

Overall, 64 percent of homes had access to the Internet by the end of last year, iSuppli said in its recent report "Broadband Equipment Market Running Full Steam Ahead." The number of broadband subscribers in the United States grew by 19 percent during the fourth quarter of 2006, the report said, and this growth will continue through 2007 before leveling off in 2008. However, iSuppli said manufacturers should not be concerned about decreased consumer demand as a healthy upgrade market will develop with the installed base looking to add value-added services such as IPTV to their home systems.

iSuppli expects cable operators, based on their success during 2006, to accelerate capital spending on VoIP infrastructure during 2007 as they attempt to significantly increase the number of double- and triple-play subscribers before the telcos can make a major push into Telco TV," the report stated.

These subscriber increases will help broadband factory revenue expand at a compound growth rate of 6.2 percent, hitting$15.1 billion by 2011, up from $11.1 billion in 2006, iSuppli reported. Globally, the number of broadband subscribers will hit the 622.7 million mark, up from 270.4 million last year.

Cable broadband service accounted for 22 percent of the market last year with ADSL garnering 72 percent.

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