US BB take-up hampered by cost, content

Could be worse

High monthly fees and lack of "compelling" broadband content are still being blamed for lack of strong demand for high speed Net access in the US, according to research by Current Analysis.

This assessment comes despite the fact that one in five homes in US now has broadband.

According to figures published by Current Analysis, there were 22.1 million subscribers in the US at the end of June - an 8 per cent increase from the end of the first quarter.

Although it has lost ground to DSL, cable continues to dominate the industry, accounting for almost two thirds of broadband subscribers.

On numbers alone, the US' situation might seem reasonably healthy. However, analysts claim that after years of hype, the broadband industry is only finally approaching a critical mass of penetration into US households.

"It is clear that the industry has reached a point where slower than expected adoption rates have become a problem of demand rather than one of supply," said Current Analysis.

And it goes on to explain that the main obstacles to broadband becoming mass market are high costs and lack of content.

That said, it notes that prices are falling with DSL now actually less expensive than cable after years of being much more pricey. What's more, broadband operators are increasingly offering promos - such as discounts and free kit - to entice punters to sign up. ®