USA - broadband

Special Report: Broadband in America

Web-surfing speeds have leapt as consumers have moved from 28-Kbps dial-up to cable, DSL modems, and fiber. But how ubiquitous is broadband Internet access? And how fast are our connections, really?

More than 60 percent of U.S. homes now have broadband Internet connections. High-speed access has become the rule rather than the exception, and Internet use has permeated our lives. According to Leichtman Research, "The combined total number of broadband subscribers is over 56 million at the end of first quarter 2007." In the past year alone, the top broadband providers added 10 million subscribers.

But a decade of rapid growth may be coming to an end. The end of 2007 marked the third quarter in a row of declining adoption numbers, and many researchers say that the industry may have finally run out of room to grow. UBS research analyst John Hodulik is one of them. He calculates that about 76 percent of eligible homes (that is, homes that have both a PC and access to broadband service) have already signed up, so there's not much potential for further expansion.

In keeping with this summer's Olympic spirit, think of broadband access in the U.S. today as a footrace—and we've barely reached the halfway mark. Several athletes got off to a fast start, but they have been reeled in and a lead pack has been established. The race now slows and becomes more tactical as each runner tries to take the lead, knowing that that initial burst of speed is over. Yet Americans are still looking for the best connection. Will one provider make a power play, offering faster, more reliable access? Read on as we analyze the front-runners.