April 30, 2001, 12:00 AM

Home-based broadband is ready to explode, says eMarketer

A new eMarketer report on broadband says there will be 90 million broadband households worldwide by 2004, up from 20 million today.

Kurt Peters

Executive Editor

By 2004, 90 million households worldwide will have high-speed connections to the Internet, a 350% increase from 20 million households in 2000, says New York-based eMmarketer ’s new Broadband Report. The United States, Canada, Denmark, Germany, South Korea, Sweden and the Netherlands lead the world in broadband readiness and potential. For the United States, eMarketer predicts that there will be 58 million active broadband users by 2004, a 517% increase from the 9.4 million in 2000.

Wider home use of broadband delivery of information will allow retailers and other web sites to deliver greater information and more intensive graphics to consumers, tus engaging them more deeply in a site’s content.

Dial-up access in the United States will peak in 2002 and will decrease as more households move to broadband. DSL subscribers in the United States will reach 13 million households by 2004, up from 1.5 million. Broadband revenues will reach $8 billion in 2004, up from $2.2 billion in 2000, while dial-up revenue will decrease to $4.6 billion in 2004 from $8 billion in 2000.

"The international broadband market is one of contrasts," said Ben Macklin, eMarketer senior analyst. "Countries such as South Korea and Canada have a broadband penetration rate approaching 50% while most other countries are less than 10%. While the `early-adopters` of technology have been the first to upgrade their dial-up connection to high-speed, the majority of mainstream Internet users are still not convinced of the value in upgrading to broadband."

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