14 thoughts on “Broadband Growth Falls Sharply in the U.S.”

  1. What’s the big deal. Downturn has been all pervasive. Broadband numbers have taken a beating. So have many other growth indicators. These are all inter-related. Trigger has to come from somewhere and everything will fall in place. And even broadband new additions will show the growth.

    1. Yes. Rent comes beofre broadband service. I wonder if the countires that US businesses outsource jobs to are seeing s similar reduction in broadband sales.

    2. I explained this in my post: it is not just the slowdown. I think the market penetration is a much bigger problem right now. The number of people with computers and the number of people with internet access (high speed) is pretty much in sync now. So that is a big big problem.

      1. Well..you may be right in metro areas….
        but if they plan to grow in numbers, they will need to expand in rural areas. Rural areas are where the potential is. Wireless carriers are rapidly adding/upgrading those areas to take advantage of the growth/revenue. I know….I’m rural and my sprint 3g has gotten faster in the last 2 weeks. I’m hitting consistent 2megs down now

  2. @Om,

    What impact (if any) do you think the burgeoning mobile broadband push is having on consumers? For instance, do you think that many may be refraining from new fixed broadband plans and considering a mobile broadband bundle for use at home and on the go?

    1. I think the mobile broadband is pretty interesting right now — it is taking the really low end users, people who are doing basic Internet tasks such as email, surfing, Facebook etc and giving them an option.

      However, the way I see it, today’s mobile broadband packages fail to thrill because of the bandwidth constraints and the data transfer limits. However going forward it should become part of people’s broadband package. I think we are seeing signs that carriers are experimenting along those lines/

  3. It seems that since the macro economic picture remains dire, politicians are increasingly enamored with second order derivatives. Yes, the economy is still shrinking but it’s shrinking more slowly than in the past. Yes, people are still losing jobs but they’re losing them at a slower rate than they did last quarter. Yes, the patient is still bleeding but…, well, point made.

    These are, of course, efforts to seek out positive data points (green shoots) among a sea of negative indicators.

    In some ways the inverse is happening with regard to broadband growth. This market sector is actually growing yet since it’s not growing as fast as it once did we take that as a negative (Government Motors should be so lucky).

    I would argue that broadband growth is being tempered the fact that, as Om points out, broadband penetration already exceeds two-thirds. Further growth will inevitably decline as penetration approaches the level at which PCs have penetrated US households. In fact, it can be mathematically proven that broadband growth will, at some point, bottom out at just a little less than population growth.

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