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July 17, 2004

Forrester Research reports that broadband Internet access is the main catalyst behind a new wave of technology adoption and online activity.

According to the "Benchmark 2004 Data Overview: Consumer Technographics North America." Report just released by Forrester Research, North America's 23.1 million broadband households are more likely than dial-up households to use the Net for researching products, shopping, banking, booking travel and getting health care information. They are also more likely to adopt new technologies like home networks and digital video recorders (DVRs).

According to the report, which is based on surveys mailed to 60,010 North American households, more than 19% of all respondents currently have broadband. In all, 23 million North American households have migrated to high-speed access, and that is up 4.3 million from last year.

Percentage-wise, Canada leads the US in adoption. While only 18.3% of US households have high-speed access, 30.4% of Canadian households are signed up.

In the competition to see which access technology will rule broadband, DSL is gaining. At the end of 2001, only 31.5% of broadband subscribers chose DSL, but by the end of 2003, DSL claimed 37.2% of broadband households. But the telecom companies still have a long way to go— cable companies claim 60.6% of broadband households. Satellite and fixed wireless remain insignificant, with only 2.6% of the broadband market.

The raw numbers are one thing, but Forrester looks beyond them to see the potential they represent.

Households with broadband earn 27% more, spend 52% more time online and are much more optimistic about technology.

They are more likely to shop online, and broadband shoppers spend more than dial-up shoppers. Forrester's report is not just good news for broadband, it's good news for everyone doing business online.

Source: eMarketer.com