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Broadband Segmentation in the U.S. Market

Leichtman Research Group (LRG) finds that 69 percent of all U.S. households now subscribe to an online service at home, and high-speed Internet services now account for about 60 percent of all online subscribers.

Overall, cable remains the most common source for residential broadband � driven by its strength among 'higher income' households, but DSL now has a greater market share than cable among 'middle-income' households. This is no doubt the result of DSL being positioned by service providers as the low-price market leader.

Thirty-seven percent of all households with annual household incomes over $75,000 subscribe to cable broadband and 27 percent subscribe to DSL. Among all households earning $30,000-$75,000 per year, 21 percent subscribe to DSL and 18 percent to cable.

These findings are based on a telephone survey of 1,600 randomly selected households from throughout the United States and are part of a new LRG study, Broadband Access and Services in the Home 2006. This is LRG�s fourth annual study of this topic.

Other key findings include:

- The mean annual household income of cable broadband subscribers is 12 percent higher than their DSL counterparts.
- The mean income of broadband subscribers is 35 percent greater than dial-up subscribers.
- 40 percent of current dial-up subscribers are interested in getting broadband.
- 80 percent of all U.S. households have at least one computer, but just 58 percent of those with annual household incomes under $30,000 have a computer at home.

�The percent of US households that subscribe to an online service is higher than ever, and broadbands� share of the online market continues to grow,� said Bruce Leichtman. �LRG forecasts that by the end of the year 2010, there will be over 105 million residential online subscribers in the U.S. � with over 80 percent subscribing to broadband.�

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