Broadband use eclipses narrowband in San Diego; Boston and New York are close.
San Diego is the first city in the U.S. to have more Internet users on broadband connections than on narrowband. That’s according to a new comScore Networks analysis of broadband penetration at both the national and local market levels based on consumer behavior in the fourth quarter of 2003. Boston and New York ranked second and third.
At the national level, 36 percent of online users accessed the Web through a high-speed connection in the fourth quarter of 2003, up 2 points from the third quarter. Comcast dominates the broadband market, providing access to approximately 19 percent of broadband users and 7 percent of all online users. SBC, the country’s largest DSL provider, accounts for 11 percent of consumer broadband connections and 6 percent of total ISP subscriptions. Not surprisingly, AOL continues to supply Internet access (narrowband and broadband) to more Americans than any other provider, with a 28 percent share.
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Broadband Pulls Nearly Even in Major Markets
comScore’s research revealed that in many of the largest markets in the United States, consumer broadband use is nearly on par with narrowband connections. But in the fourth quarter, San Diego became the first in which broadband subscriptions outnumbered narrowband connections.
Broadband use is more common in larger markets, with approximately 40 percent of Internet users in the top 50 markets enjoying the, compared to 36 percent elsewhere.
A number of the nation’s major population centers rank among the top ten markets in terms of broadband penetration. By contrast, only three top-25 markets (St. Louis, Sacramento, and Indianapolis) were ranked among the ten markets with the lowest broadband penetration.
“In the past several months, we’ve seen the U.S. online population reach 150 million people and household broadband penetration cross the 33 percent threshold,” says Russ Fradin, executive vice president of comScore Networks. “Now we’ve recorded another milestone, with broadband accounting for more than half of a major U.S. market’s Internet connections.”
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At a national level, 63 percent of broadband subscriptions are cable connections, while DSL subscriptions account for approximately 37 percent of the high-speed market. In nine of the 10 markets with the highest broadband penetration, the majority of subscribers with a high-speed connection use cable modems. The exception to this pattern is San Francisco, where approximately 60 percent of broadband subscriptions are DSL accounts.
One in Four Internet Users Intends to Switch ISPs
A comScore proprietary survey indicates that more than one in four Internet users intends to switch ISPs in the next six months. The majority of those reporting they plan to change ISPs say they would be selecting a broadband provider. By far the most common reason cited for switching providers is a desire for a faster connection. The second most popular reason for switching ISPs is price, which is likely a key contributor to the strong performance of United Online relative to other dial-up providers in the fourth quarter.
“comScore’s survey research reveals a substantial number of people on the verge of switching their ISPs, indicating that a significant number of consumers are benefiting from intense competition among incumbent phone and cable providers, as well as newer market entrants,” says Fradin. “It’s clear that increased promotional activity and lower prices introduced by these competitors are fueling the momentum of broadband growth, particularly in larger markets.”
About comScore Telecommunications Solutions
comScore’s ISP tracking service is based on the comScore Global Network -- which continuously and confidentially captures the complete Internet activity of more than 1.5 million Internet users, including large samples of users from home, work, and university locations, with both dial-up and broadband connections of all types. Unlike other online tracking systems, which compile clickstream data from a small sample of specific ISPs or user PCs, comScore’s monitoring technology operates on servers that are part of the link between the panelists and the Internet. This design uniquely enables comScore to measure the number and type of ISP subscriptions, across a representative sample of Internet users.
About comScore Networks
comScore Networks provides insight into consumer behavior, based on a representative cross-section of more than 1.5 million global Internet users who have given comScore explicit permission to confidentially capture their Web-wide browsing, buying and other transaction behavior, including offline purchasing. Through its patent-pending technology, comScore measures what matters across the entire spectrum of surfing and buying behavior. This deep knowledge of customers and competitors helps clients design more powerful marketing strategies and tactics that deliver superior ROI. comScore services are used by global leaders such as Microsoft, The Newspaper Association of America, Knight Ridder Digital, Best Buy, Verizon, Nestlé, Wells Fargo & Company, GlaxoSmithKline, and Orbitz. For more information, please visit www.comscore.com.