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Broadband Usage Poised
to Eclipse Narrowband in Largest U.S. Markets
comScore Networks Releases Fourth Quarter ISP Market
Share Report
RESTON, Va., March 10,
2004 – comScore Networks today released an analysis of
broadband penetration at both the national and local market
levels based on consumer behavior in the fourth quarter of 2003.
comScore’s research revealed that San Diego has become the
first metropolitan market in which a majority of Internet users
connected to the Web through a broadband connection rather than a
narrowband service. Further, the analysis found that among the
largest 50 markets, San Diego, Boston and New York led the nation
in the usage of broadband connections.
At the national level, 36
percent of online users accessed the Web through a high-speed
connection in the fourth quarter of 2003, up 2 points from 34
percent in the third quarter. Comcast holds the dominant position
in the broadband market, providing access to approximately 19
percent of broadband users and 7 percent of all online users.
SBC, the country’s largest DSL provider, accounts for 11
percent of consumer broadband connections and 6 percent of total
ISP subscriptions. Not surprisingly, AOL continues to supply
Internet access (narrowband and broadband) to more Americans than
any other provider, with a 28 percent share.
|
Internet Service Provider (ISP) Market
Share
U.S. Consumer ISP Subscriptions
Q4 2003
|
|
Total U.S. 100%
|
Market
Share
|
|
1 - AOL (America
Online)
|
28 %
|
|
2 - Comcast
|
7 %
|
|
3 - United Online
|
6 %
|
|
4 - Microsoft Corp.
|
6 %
|
|
5 - SBC
|
6 %
|
|
6 - EarthLink
|
5 %
|
|
7 - Road Runner
|
4 %
|
|
8 - Bell South
|
3 %
|
|
9 - Verizon
|
3 %
|
|
10 - Cox
Communications
|
2 %
|
|
11 - All the Other
|
30 %
|
|
Source: comScore Networks
|
Note: Shares based on subscriber accounts through
which direct
Internet access is provided and which are actively used in
analysis
period. (i.e., does not include "Bring Your Own Access"
subscriptions)
Broadband Poised to Eclipse Narrowband in Major
Markets
comScore research revealed that
in many of the largest markets in the United States, consumer
broadband usage is nearly on par with narrowband connections. In
fact, in the fourth quarter, San Diego became the first major
market in which broadband subscriptions outnumbered narrowband
connections. Broadband usage is notably more common in larger
markets, with approximately 40 percent of Internet users in the
top 50 markets enjoying the benefits of a broadband connection,
compared to a national penetration level of 36
percent.
A number of the nation’s
major population centers, including Boston, New York, San
Francisco and Los Angeles, rank among the top ten markets in
terms of broadband penetration. By contrast, only three top-25
markets (St. Louis, Sacramento, Indianapolis) were ranked among
the ten markets with the lowest broadband penetration.
“In the past several
months, we’ve seen the U.S. online population reach 150
million people and household broadband penetration cross the
33-percent threshold,” said Russ Fradin, executive vice
president of comScore Networks. “Now we’ve recorded
another milestone, with broadband accounting for more than half
of a major U.S. market’s Internet connections.”
|
Connection
Type by Market
Top 50 Local Markets
Q4 2003
|
|
|
TOP 10
Broadband Markets
|
|
Area
|
Broadband
|
Narrowband
|
|
San Diego
|
52 %
|
48 %
|
|
Boston
|
50 %
|
50 %
|
|
New York
|
49 %
|
51 %
|
|
Providence, RI
|
47 %
|
53 %
|
|
Kansas City
|
46 %
|
54 %
|
|
Detroit
|
45 %
|
55 %
|
|
Tampa-St. Peters.
|
45 %
|
55 %
|
|
Orlando
|
44 %
|
56 %
|
|
San
Francisco-Oak.-SJ
|
44 %
|
56 %
|
|
Los Angeles
|
44 %
|
56 %
|
|
|
|
|
Source: comScore Networks
|
|
|
|
|
TOP 10
Narrowband Markets
|
|
Area
|
Narrowband
|
Broadband
|
|
Albuquerque-Santa Fe
|
76%
|
24%
|
|
Grand Rapids
|
70%
|
30%
|
|
Harrisburg, PA
|
70%
|
30%
|
|
Indianapolis
|
70%
|
30%
|
|
Sacramento-Stockton
|
69%
|
31%
|
|
Birmingham
|
68%
|
32%
|
|
Nashville
|
68%
|
32%
|
|
Louisville
|
67%
|
33%
|
|
Memphis
|
66%
|
34%
|
|
St. Louis
|
66%
|
34%
|
|
|
Source: comScore Networks
|
At a national level, 63 percent of broadband subscriptions
are cable connections, while DSL subscriptions account for
approximately 37 percent of the high-speed market. In nine of the
ten markets with the highest broadband penetration, the majority
of subscribers with a high-speed connection use cable modems. The
exception to this pattern is San Francisco, where approximately
60 percent of broadband subscriptions are DSL accounts.
One in Four Internet Users Intends to Switch
ISPs
A comScore proprietary survey
indicated that more than one in four Internet users intend to
switch ISPs in the next six months. The majority of those
reporting they planned to change ISPs said they would be
selecting a broadband provider. By far the most common reason
cited for switching providers was a desire for a faster
connection. The second most popular reason for switching ISPs was
price, which was likely a key contributor to the strong
performance of United Online relative to other dial-up providers
in the fourth quarter.
“comScore’s survey
research reveals a substantial number of people on the verge of
switching their ISP, indicating that a significant number of
consumers are benefiting from intense competition among incumbent
phone and cable providers, as well as newer market
entrants,” continued Mr. Fradin. “It’s clear
that increased promotional activity and lower prices introduced
by these competitors are fueling the momentum of broadband
growth, particularly in larger markets.”
About comScore Telecommunications
Solutions
comScore’s ISP tracking
service is based on the comScore Global Network – which
continuously and confidentially captures the complete Internet
activity of more than 1.5 million Internet users, including large
samples of users from home, work, and university locations, with
both dial-up and broadband connections of all types. Unlike other
online tracking systems, which compile clickstream data from a
small sample of specific ISPs or user PCs, comScore’s
monitoring technology operates on servers that are part of the
link between the panelists and the Internet. This design uniquely
enables comScore to measure the number and type of ISP
subscriptions, across a representative sample of Internet
users.
For more information
about comScore Telecommunications Solutions, please e-mail:
telecomsolutions@comscore.com.
Contact: Graham Mudd
comScore Networks, Inc.
(312) 775-6539
press@comscore.com
About comScore Networks
comScore Networks provides unparalleled insight into consumer
behavior. This capability is based on a representative
cross-section of more than 1.5 million global Internet users who
have given comScore explicit permission to confidentially capture
their Web-wide browsing, buying and other transaction behavior,
including offline purchasing. Through its patent-pending
technology, comScore measures what matters across the entire
spectrum of surfing and buying behavior. This deep knowledge of
customers and competitors helps clients design more powerful
marketing strategies and tactics that deliver superior ROI.
comScore services are used by global leaders such as Microsoft,
The Newspaper Association of America, Knight Ridder Digital, Best
Buy, Verizon, Nestlé, Wells Fargo & Company,
GlaxoSmithKline, and Orbitz. For more information, please
visit www.comscore.com
