Broadband users outpurchased narrowband users by over 2 to 1 over the holidays, according to a recent survey by Nielsen/NetRatings. While women now outpace men in European Internet uptake, the digital divide remains for age, education, and income, according to a new survey by the European Commission. In January, broadband penetration among active Internet users in the U.S. grew by 0.78 percentage points to 55.47%. 44.53% of US home users dial into the Internet with "narrowband" connections of 56Kbps or less. The charts below, derived from Nielsen//NetRatings data, show trends in connection speeds to the Internet for United States users.*
In January 2005, most active Internet users connect from home with broadband connections. Among narrowband users, 36.91% use 56Kbps modems, 5.12% use 28/33.3Kbps, and 2.5% use 14.4Kbps modems. In total, 44.53% of home users in the US connect to the Internet at 56Kbps or less (see Figure 1).
Figure 1: Web Connection Speed Trends - Home Users (US)
Broadband penetration in the US grew by 0.78 points to 55.47% in January, up from 54.69% in December. This increase is below the average increase in broadband of 1 point per month over the previous twelve months. Broadband share in the US should exceed 70% by December of 2005 (see Figure 2).
Figure 2: Broadband Connection Speed Trend - Home Users (US)
Extrapolated from Nielsen//NetRatings data
Most workers in the US enjoy high-speed connections to the Internet. Most use a high-speed line such as a T1 connection, and share bandwidth between computers connected to an Ethernet network. The speed of each connection decreases as more employees hook up to the LAN. As of January of 2005, of those connected to the Internet, 80.19% of US users at work enjoy a high-speed connection, down 1.2 percentage points from 81.39% in December. At work, 19.81% connect at 56Kbps or less (see Figure 3).
Figure 3: Web Connection Speed Trends - Work Users (US)
More than two-thirds of all online purchases are made by broadband users, according to Nielsen//NetRatings. 69 percent of retail purchases online were conducted on broadband connections, versus 31 percent of purchases transacted by narrowband connections. Broadband users also spent 34 percent more per purchase ($158.21 versus $117.89) than narrowband users, with a higher conversion rate (26% versus 21%).
*Note that Nielsen//NetRatings reports the percentage of active Internet users that use broadband from home, not broadband households. NetRatings uses a panel of 40,000 to 50,000 people with software meters installed on their computers. These meters detect connection speeds. Each month they do an enumeration study to call a number of people to calibrate the panel by adjusting weightings to match the population at large.
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By website optimization on 14 Feb 2005 PM