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U.S. Broadband Penetration To Hit 50%

El Segundo, Calif. — 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.

The 50 percent penetration rate means that vast majority of households served by the Internet have a broadband connection. Overall, 64 percent of homes had access to the Internet, 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 as a healthy upgrade market will develop with the installed base then looking to add value-added services such as IPTV to their home systems.

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.