Gartner Dataquest Survey Shows 61 Percent of U.S. Households Actively Using the
Internet
Of Households Online, One in Four Access the Web Via High-Speed Connection
SAN JOSE, Calif., August 29, 2001 —Despite Internet service provider (ISP) and competitive
local exchange carrier (CLEC) failures, U.S. consumer demand for Internet access
continues to grow, according to survey results by Dataquest Inc., a unit of Gartner,
Inc. (NYSE: IT and ITB).
A Gartner Dataquest survey from June 2001 found that 65 million U.S. households
are actively using the Internet. There has been an increase of 8.4 million users
since Gartner Dataquest's previous survey in November 2000. Sixty-one percent of
U.S. households are actively online, and when they get online, they usually get
hooked and continue to subscribe to the Internet. Ninety percent of online households
said they were likely to continue their Internet subscription - indicating that
the Internet is becoming a staple in the household.
"While U.S. businesses and consumers have been cutting back and restructuring their
debt to weather the economic slowdown, the U.S. consumer has not yet reduced their
seemingly insatiable appetite for Internet access," said Amanda Sabia, industry
analyst for Gartner Dataquest's worldwide Telecommunications and Networking group.
"In fact, there is no indication that this demand will abate over the next 12 months.
An even higher growth rate for broadband connectivity would be achievable if the
regional Bell operating companies (RBOCs) were deploying DSL more aggressively."
High-speed Internet access achieved a penetration rate of just less than 25 percent
of online households. Cable modem subscribers comprised more than 50 percent of
all online high-speed households. Nearly 20 percent of dial-up households said they
expect to subscribe to some form of high-speed connectivity by mid-2002.
"Cable providers are making a more concerted effort to sell cable modems, while
the RBOCs, the main purveyors of DSL services, have not taken up the cable TV challenge
in the residential market, focusing instead on the business segment," said Peggy
Schoener, senior analyst for Gartner Dataquest's worldwide Telecommunications and
Networking group. "Cable modem providers have also provided a better customer installation
experience than DSL. The price of DSL has also been raised and the incumbent local
exchange carriers (ILECs), specifically the RBOCs, have cut back their plans for
more aggressive rollouts." Additional information is available in the Gartner Dataquest
Focus Report "What Economic Slowdown? U.S. Consumer Demand for Internet Access Breaks
Records." This report examines how U.S. households are accessing the Internet today
and in the future.
This research is published by Gartner Dataquest's worldwide Telecommunications and
Networking group. This group provides analysis for the full spectrum of telecom
and networking issues. To keep up to date on the latest telecommunications issues,
please visit Gartner's Telecommunications Focus Area at http://www.gartner.com/1_researchanalysis/focus/telecom_fa.html.
To subscribe to Gartner Dataquest programs, please call 800-419-DATA, or 408-468-8009.
Reports can be purchase on the Internet at www.gartner.com.
Gartner Dataquest is the recognized leader in providing the high-technology and
financial communities with market intelligence for the semiconductor, computer systems
and peripherals, communications, document management, software and services sectors
of the global information technology industry. Gartner, Inc. is a research and advisory
firm that helps more than 10,000 clients understand technology and drive business
growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner
Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered
in Stamford, Connecticut and consists of 4,600 associates, including 1,400 research
analysts and consultants, in more than 80 locations worldwide. The company achieved
fiscal 2000 revenue of $855 million. For more information, visit www.gartner.com.