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story category Firm: 80% Broadband Penetration In Five Years
Thanks largely to fiber and Mobile WiMax...
01:09PM Thursday Jun 04 2009 by Karl Bode
tags: business · stats
Strategy Analytics confirms what we've already seen: broadband adoption continues to grow despite a troubled economy, as more people turn to broadband as a necessary utility instead of a luxury entertainment service. While broadband's growth rate is down from the double-digit growth of the last few years (as carriers milked dying dial-up companies of their subscribers), broadband should still grow as a 7% rate in 2009, a rate that's "pretty robust in today’s climate," according to the firm.

According to the group's latest study, recession-resistant growth means that broadband adoption in the United States should reach 80% during the next five years. Given nobody has bothered to actually go into the field and confirm current broadband penetration levels, and base data that does exist has proven dubious at best, we asked Strategy Analytics analyst Ben Piper how exactly the group came to that number.

"Forecasting is both an art and a science, so there is never 100% certainty," admits Piper. "That said, we feel confident about our methodology and forecast," he says. "The 80%+ household penetration number is predicated on a somewhat conservative 7.7% five year CAGR," (compound annual growth rate) he says, noting that he expects a lion's share of growth to come courtesy of fiber to the home and WiMax/FWA deployments.

That's curious, given that Verizon's the only major company deploying fiber -- and their deployment will dramatically slow once the company completes their $23 billion investment plan in 2010. As for Mobile WiMax, it seems that much of that technology's future remains squarely hitched to the success of Clearwire -- a company that's slowly deploying service to metro markets already covered with terrestrial broadband.

Related:
  1. WildBlue Passes 400,000 Customers
  2. Study: U.S. Fifteenth In Broadband Quality
  3. 5.3 Million North America Fiber Customers
  4. WiMax Is (And Will Remain) A Niche Player
  5. The "Death Of P2P" Is Relative, Possibly Wrong
  6. Sandvine: P2P Now Just 20% Of Internet Use
  7. JD Power's Latest ISP Ratings
  8. U-Verse Invasion Of BellSouth Territory Continues
Forums » Firm: 80% Broadband Penetration In Five Years
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ninjatutle
Premium

join:2006-01-02
San Ramon, CA

WIMAX!

Thats a good one!

mod_wastrel

join:2008-03-28
·magicjack.com

Re: WIMAX!

I dunno... 802.16 (WiMAX) might fit the bill till 802.22 (WhiteSpace) takes over--presuming it ever gets off the ground. If nothing else, one or both may replace dial-up access entirely (for those still on dial-up, especially if it's "free" ...here's hopin'), so it doesn't have to be anywhere near as fast as wired (just orders of magnitude faster than dial-up). Mostly, we just need more options than our local telco and our local cableco--aka the devil you know and the devil you don't know.

anonuser101

@rr.com
lmao!!!
sonicmerlin

join:2009-05-24
Cleveland, OH

Right...

Great, we'll have 80% "broadband" penetration in 5 years. 2 mbit connections for everyone! Huzzah!

Customer: Uh...I was wondering...do you think maybe I could make use of that newfangled (insert name) service any time so-

ISP: NO! You may not! Now pay us more money!!!!

Mike Wolf

join:2009-05-24
Beachwood, NJ

Re: Right...

YAY!! *puts out my hand*
iansltx

join:2007-02-19
Golden, CO
Hey, I'd like a 2 Mbit connection out here that is 2 Mbit all the time and doesn't cost $100 per month with a 25GB cap.
me1212

join:2008-11-20
Pleasant Hill, MO
2m wireless>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>dial-up or WB/hughes

mod_wastrel

join:2008-03-28
·magicjack.com

2mbps as a minimum? Absolutely. It beats 56k every time. Granted, I'm sittin' on 30/5, but a lot of people can't get anything or can't get it at a price they like. And, frankly, I seldom encounter something (including streaming video) that requires more than 2mbps. So, yeah, Huzzah! for 2mbps [available] for everyone!
sonicmerlin

join:2009-05-24
Cleveland, OH

Re: Right...

If you're sitting on 30/5 how could you know if something required more than 2 mbps or not?

mod_wastrel

join:2008-03-28
·magicjack.com

Re: Right...

Because the net meter (DU Meter) that I have sitting at the bottom of my screen constantly displays how much bandwidth I'm using. It seldom exceeds 2mbps except for file downloads (and some web pages). I keep it there to check how much bandwidth I'm using for specific tasks (downloads, streaming video, VoIP, etc.). Video streams typically approach 2mbps (peak) before filling the buffer.

And having a 30/5 connection makes it very easy to determine how much of it I don't need for some task.
robl27
Premium
join:2008-07-16
Mary Esther, FL
·Cox HSI
·Vonage

metered billing..

with the onslaught of metered billing there will probably be 0 broadband (as no one can't afford it) in 5 years. instead of stepping up to the plate, we will be going back to the AOL days of "330 minutes for free" deal

I have a hard time paying $60 a month, don't need it to be $600 dollars a month!!

-Rob
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me1212

join:2008-11-20
Pleasant Hill, MO

Re: metered billing..

Which is why we need new ISPs and co-op ISPs.
robl27
Premium
join:2008-07-16
Mary Esther, FL

Re: metered billing..

right on. when people get their $1,000 ISP bill then hell will break loose.
me1212

join:2008-11-20
Pleasant Hill, MO

Re: metered billing..

Yeah, if I have to pay $1000 I may as well get a dedicated Tx connection with no cap.

tubbynet
reminds me of the danse russe
Premium
join:2008-01-16
Chandler, AZ
·Cox HSI
·Callcentric
·Sprint Mobile Broa..
·FrontierNet Intern..

said by robl27 See Profile :

I have a hard time paying $60 a month, don't need it to be $600 dollars a month!!
even with twc's *obscene* metered bandwidth trials, you are still looking at the $54.95 for the top tier (with 40gig included) and then $1/gig overage. assuming that the taxes/unfees on your cable modem come to an amount of unusually high tax rate in my metro area (~8.9%), you are looking at a legitimate "bill" of $550.96. if you subtract the base cost of $54.95 for your plan, and then add the used 40gig to the tally, you would be consuming an added 496gig, bringing your monthly consumption to 536 gigabytes per month which is highly unlikely for all but the highest consumers (and these are most likely the people that comcast, et al are trying to target with their 250gig caps).

now, enough of the knee-jerk reactionary fud. i know it makes for a good story to get the masses angry, but lets look at the math, shall we?

q.
--
"...if I in my north room dance naked, grotesquely before my mirror waving my shirt round my head and singing softly to myself..."
majella77

join:2001-10-03
Chicago, IL

Vacated analog tv band

I've not been following the discussion about how the soon to vacated analog tv band will be used, but why can't some of this be used to provide some boost to wi-max or another kind of wireless internet solution?

My thinking is that we should be moving toward a completely wireless future for all our devices. I don't see even fiber as anything more than a short-term answer to our broadband problem.
me1212

join:2008-11-20
Pleasant Hill, MO

Re: Vacated analog tv band

I thought the analog stuff was going to be used for emergency rescue(firemen cops ect.) people.

aefstoggaflm
Open Source Fan
Premium
join:2002-03-04
Bethlehem, PA
·Verizon Online DSL

Someone else predicted that too, but they were wrong...

Points to »Widespread FTTP Deployment - How soon?

and quotes myself

quote:
In the book/magazine of: How The Internet Works, Part 1, Smart Computing Reference Series, Vol 5, Issue 1, Spring 2001.


quote:
Well here we are in 2009 (8 years latter) and we do not see widespread FTTP Deployment.

^^
--
Please use the "yellow (IM) envelope" to contact me and please leave the URL intact.
Forums » Firm: 80% Broadband Penetration In Five Years


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