At-Home Worker Continues to Drive Broadband Adoption According to In-Stat/MDR
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* Households with a laptop and home network watch three fewer hours of TV per week and read the paper an hour less per week than offline households do. In the past three months, 43 percent of US online households banked online, 41 percent checked their account balances online, and 24 percent transferred balances online. In 2004, 39.5 million US households shopped online 3.5 million more than in 2003. Broadband, laptop, and home networking adoption will help drive online research and purchasing to more than 55 million households by 2010.
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SCOTTSDALE, Ariz.--(BUSINESS WIRE)--July 19, 2004--Nearly a third of the U.S. work force, or 44 million individuals, is expected to regularly work at home on at least a part-time basis in 2004, reports In-Stat/MDR (http://www.instat.com). Wanting the convenience of being able to work at home, these telecommuters are adopting broadband as a necessary tool and have proven to be a driving force behind residential broadband adoption. Companies, too, are supporting this movement, with some firms going so far as to subsidizing the equipment and service expense to allow their employees to work from home.
Geographic, social and economic factors are also important in the provision and adoption of broadband but these factors have not proved to be the common denominator for continued broadband growth. Canada, for example, is a geographically large country with approximately 79% of its population living in urban centers, yet it ranks 4th in the world in broadband penetration of households.
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"Telecommuters are an important and growing broadband audience, and with their unique needs represent an enormous opportunity," said Kneko Burney, chief market strategist for In-Stat/MDR's Business Infrastructure & Services group. In addition, Burney noted that "soft" factors, such as the desire to stay closer to family, avoid the stress of the office and cut back on commuting time, coupled with the need to extend the work day (due in part to downsizing), have translated to increased interest in telecommuting among employees -- as well as businesses.
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The supply of broadband in the UK continues to flourish, notably in Wales, according to a new report from BT.
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In-Stat/MDR expects that the greatest growth in residential business broadband will occur in 2004. However, growth is expected to slow dramatically thereafter for both DSL and cable modems as the growth of full-time telecommuters stagnates and that of part-time daytime telecommuters slows down. "As growth declines, providers will be able to continue revenue growth through the promotion of fuller service bundles particularly targeted to this market," said Amy Cravens, a senior analyst for In-Stat/MDR.
The broadband video market is expected to continue its exponential growth, according to new research
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In-Stat/MDR has also found that:
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-- By 2008, the U.S. business market is expected to support nearly 51 million telecommuters, nearly 14 million of which are expected to work from home full time.
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-- Telecommuters need and subscribe to different services compared to other residential Internet users.
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-- Cable clearly outpaces DSL in terms of number of subscribers in the U.S. business at-home work force; however, there is a significant opportunity to offer DSL as a part of a bundled solution for telecommuters.
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The report, "Business Broadband@Home: High-speed Internet and the At-home Worker in the US" (#IN0401291IA), examines the factors contributing to this phenomenon, as well as the influence the telecommuter market has had on residential broadband services. Forecasts include U.S. teleworker Internet subscribers, U.S. teleworker total broadband subscribers, U.S. teleworker DSL subscribers and U.S. teleworker cable subscribers. For more information on this report, please visit: http://www.instat.com/catalog/pcatalogue.asp?id=95 or contact Erin McKeighan; emckeighan@reedbusiness.com or 480-609-4551. The report price is $2,995.
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About In-Stat/MDR
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In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.
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In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With more than 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.
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Contacts
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In-Stat/MDR, Scottsdale
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Kneko Burney, 480-609-4544
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kburney@reedbusiness.com
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Kirsten Skedd, 480-609-4534
kskedd@reedbusiness.com
