Skip to main content

Premature Saturation: Few Net Newcomers

A new study from Parks Associates has found few new households willing to subscribe to Internet services, which will limit 2006 growth in overall Internet penetration to one percent, rising from 63 percent to 64 percent by year's end. According to "The National Technology Scan (2005)," a survey of 1,000 U.S. homes, there are currently 39 million homes without Internet access, and among these, only eight million own a computer, an obvious prerequisite for Internet adoption. Moreover, the majority of these PC households will not subscribe to an Internet service at any cost.

The study found only two million offline homes are planning to get Internet services in 2006. Another 300,000 homes said they might subscribe if offered a cheaper service. At the same time, 14 million U.S. households do not have Internet service at home but access the Web at work or other locations, such as a library or an Internet caf�.

"We are clearly facing a problem of demand, not supply," said John Barrett, director of research at Parks Associates. "Computers and Internet service have never been cheaper, yet many households still show little enthusiasm for the technology."

Reasons given for this lack of interest vary. Among households that will not subscribe to an Internet service at any price, 31 percent said having access at work is sufficient for their Internet needs. Another 18 percent simply claimed, "I am not interested in anything on the Internet." Thirty-nine percent of households cited "other" reasons for their lack of interest. "We present them with several possible reasons, and their response is typically 'none of the above," Barrett said.

Popular posts from this blog

Chinese AI Models Cut U.S. Lab Share in Half

The trillion-dollar cloud hyperscaler build-out was underwritten by a simple bet: that enterprises would keep paying a premium for Frontier AI compute indefinitely. The latest market data suggests that AI infrastructure investment is being tested faster than anyone budgeted for, and the shift is not a forecast. It already happened. The Market Flipped in a Year Juniper Research reports that American frontier labs -- Google, OpenAI, and Anthropic among them -- previously accounted for roughly 70 percent of the work run through OpenRouter; the open marketplace where developers choose between competing models. Today that share has fallen to around 30 percent. Why? Chinese models are now running for up to 90 percent less than their U.S. counterparts on the OpenRouter platform. It's not a gradual erosion. It is a market share collapse, and it happened inside a single budget cycle. Cheap Wins Volume, Quality Still Commands a Premium The economic picture is not uniformly bearish for Wester...