Broadband Studies Conflict

Forty two percent of American homes have broadband access to the Internet, a 16% increase from the beginning of the year, according to a report from Nielsen//NetRatings that somewhat contradicts an earlier report from The Pew Internet & American Life Project.

Nielsen//NetRatings reported that as of August, 120.8 million Americans had broadband access compared to 103.8 million in January.

The figures bode well for online marketers and advertisers as people with broadband access spend more time and money online and can view rich content more easily.

“Although broadband penetration among Internet users has long been on the rise, it was always amid speculation that the high cost of broadband would limit its widespread adoption,” said Charles Buchwalter, vice president of client analytics, Nielsen//NetRatings, in a statement. “However, over the last year, carriers have responded to the growing demand for lower cost broadband and all indications are that this trend will continue.”

Nielsen//NetRatings reported that the percentage of Internet users who log on at least monthly that accessed the Internet via broadband at home rose to 61.3% compared to 51.4% of active Internet users in August 2004.

Moreover, those using a dial-up connection dropped 10% in the last year to 54.3 million from 60.6 million.

“This continuing increase in broadband use is an essential step in a maturing Internet industry,” said Buchwalter. “Compared with their narrowband counterparts, broadband users spend more time and money online because their surfing experience is faster, more persistent, and ultimately, more satisfying. This is good news for consumers, publishers and advertisers alike.”

However, while Nielsen//NetRatings seems bullish on broadband’s continued growth, a study from the Pew Internet & American Life Project released late last month wasn’t nearly as positive.

The Pew Internet report said that American broadband adoption is still growing, but slowing. That report said that as of last May, 53% of home Internet users had broadband access, up from 50% in December 2004. The growth represents a “small and not statistically significant increase” and compares unfavorably to broadband adoption during a comparable period a year earlier, the Pew Internet report said. In May 2004, 42% of home Internet users had high-speed connections, up 20% from November 2003.

As the growth rate of the Internet population overall slows, the pool of potential broadband adopters will slow, as well, the Pew Internet report said.

From 2002 to 2005, “the low-hanging fruit of dial-up users was harvested by broadband service providers