U.S. Broadband Growth May Be Leveling Off

People are racing to install the quickest methods for accessing information over the Internet. However, the trend does not necessarily translate into unbridled growth for broadband users. At least one industry analyst is sounding cautionary bells.

In a published report, UBS AG analyst John Hodulik noted broadband growth may be leveling off. He points out that while slightly more than half of American homes are linked to broadband, more than three-quarters have a computer, so there is not much ground left for the industry to gain.

If subscriber growth is any indication, Hodulik appears to be onto something. He noted that broadband subscriber growth in the United States was 18 percent for the third quarter of 2007, a noticeable drop from 19.8 percent growth in the previous quarter and 30.1 percent growth in the third quarter a year ago. Hodulik expects broadband growth to continue to slide, from 16 percent in 2007 to 12 percent in 2008 and 10 percent in 2009.  EC




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