High cost hindrance to wider broadband acceptance in the US
While Asian countries like Hong Kong and South Korea have over half the population already using broadband, only 15 percent of American households subscribe to broadband service (out of a potential 70 percent of households that could potentially subscribe at this point) according to this New York Times story (registration required).
Even though the number of subscribers rose 50% over the last year, that rate of increase will continue to slow since only the richer households feel they can afford broadband (about twice the cost of regular dial-up) in the face of few killer applications so far...even many technology-savvy Silicon Valley friends of mine refuse to make the switch because of the cost difference.
So far, a crucial limit on demand has been price. Whether provided by the telephone company or the cable company, broadband costs about $40 to $50 a month — too steep, evidently, for a large contingent of Internet users who are not convinced of the value of faster Web connections. And many, presumably, are deterred by horror stories of how difficult it can sometimes be to have broadband service installed.
...And so, only about one-third of households are expected to have broadband by the end of 2006, with the great majority of those subscribing to the service through cable modems and digital subscriber lines.
...Out of the estimated 16 million household broadband subscribers in this country, 10.6 million use cable modems and 5.1 million use D.S.L., according to the Yankee Group research firm. The others use one of various alternatives that include satellite service and so-called fixed-wireless service.
....More than 28 percent of households with income above $100,000 have broadband access, compared with only 4 percent of households with incomes below $35,000, according to a study by the Leichtman Research Group. The figures suggest that the price of broadband service must decline before it can become more widely available.