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Friday January 30, 2004

Report: Broadband Taking Back Seat to Dial-Up

While broadband Internet connections to homes are expected to grow, dial-up access will dominate household hookups through 2005, according to a report released Wednesday by Cahners In-Stat Group.

The report, "Hooked on Dialup: Consumer ISP Trends and Market Share," reveals that nearly one-third of U.S. households state no need or desire for any Internet service at all.

Broadband is expected to grow, but households Dec

lining Web connections altogether will remain, according to the study.

Dial-Up Dependency

Cahners Internet service provider (ISP) analyst Daryl Schoolar told NewsFactor Network that ISPs cannot afford to turn their backs on dial-up customers, who will continue to be a substantial share of the market.

"Many ISPs are putting all of their efforts into broadband," Schoolar said. "You don't see them talking about dial-up."

Cahners predicts the "rocket-like" speed that propelled ISPs into more than half of all U.S. homes over the last Dec

ade will slow as the market becomes saturated and those not interested in Web connections remain.

"By the year 2005, there will still be just as many households without Internet access as those using cable modems or DSL," Schoolar said.

Source: Courtesy of NewsFactor Network, author Jay Lyman

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