U.S. Broadband Availability Will Hit 95% in Five Years, But Adoption Will Lag

Though broadband services will be available to almost 95 percent of U.S. households by 2014, many homes will still lack access to low-cost, high-speed options, according to a recent report commissioned by the Federal Communications Commission (FCC). Despite the projected increase in availability, the study finds that the rate of adoption and the availability of truly high-speed Internet services will be much lower. While upgrades to cable broadband networks and new wireless technologies will help provide new options, government involvement may be the only way to keep U.S. adoption rates competitive with other global markets.

The Columbia Institute of Tele-Information, which prepared the report, estimates the current broadband availability rate at 91 percent. Broadband in America: Where It Is and Where It Is Going (According the Broadband Service Providers) provides a listing of all publicly-announced broadband plans and a comparison of the progress of these plans to their original scope and timeline. These plans are sorted by company and the nature of the broadband technology. Using this data, the authors estimate the state of U.S. broadband in three-to-five years, including the availability of both wired and wireless services. The forecast does not take into consideration the effect of the federal broadband stimulus effort or any other government broadband initiative that could increase adoption and accessibility.

By 2014, 95 percent of U.S. homes will have access to at least low-speed broadband services, according to the report. Of the homes that receive broadband services, however, up to nine percent only will have access inferior options with slower speeds. These options include satellite broadband and low-speed wired and wireless services. Satellite-based services tend to be slower and depend on unimpeded line-of-sight to the position of broadband satellites. The lack of convenient, lower-cost, high-speed Internet access will continue to depress broadband adoption over the next few years.

Currently, 63 percent of U.S. homes subscribe to a wired broadband service. The report estimates that this figure will grow to 69 percent in 2014. Adoption rates have slowed over the past few years as the market has approached saturation and consumer spending has slowed. Meanwhile, subscriptions to wireless providers are on the rise. The wireless broadband adoption rate is expected to pass 50 percent in 2013, up from the current level of 31 percent.

Government support for wired infrastructure build-out or for new wireless technologies, such as Long Term Evolution (LTE) and WiMAX, could boost the availability of high-speed options across the country. The 2009 Recovery Act included funds for broadband mapping initiatives to reveal the extent of state broadband gaps in access and speed. The National Telecommunications and Information Administration has awarded Broadband Technology Opportunity Grants to 19 states and the District of Columbia.

Read Broadband in America: Where It Is and Where It Is Going (According the Broadband Service Providers) at: http://www.broadband.gov/docs/Broadband_in_America.pdf.