Broadband to reach 77% of US households by 2012, says Gartner

July 31 2008 - The US is predicted to close its digital divide "significantly" within the next four years, according to a new report from Gartner, with 77% of households in the country expected to have broadband by 2012, compared to just over half at present.

Worldwide, 17 countries are expected to have broadband penetration rates of 60% or more by 2012, up from five countries in 2007. South Korea, which currently has the highest penetration rate globally at 93%, will retain its lead and increase broadband penetration to 97% by the end of 2012. The US is expected to tie with Japan for fifth-highest broadband penetration at the end of the period with 77%, behind South Korea, the Netherlands (82%), Hong Kong (81%) and Canada (79%).

Worldwide consumer broadband connections are projected to grow from 323mn in 2007 to 499mn in 2012, with global penetration reaching 25% of the world's households by 2012, compared to 18% at the end of last year. The markets of the US, Japan, Czech Republic, New Zealand and Australia are expected to see broadband penetration increase by over 20% during the period, dependent on specific market conditions, availability of Internet-enabled devices and the continue impact of broadband on consumer lifestyles.

As broadband becomes more ubiquitous, ISPs are expected to concentrate less on building out their networks to reach new customers and more on expanding what customers can do with their broadband connection, said Amanda Sabia, Principal Research Analyst at Gartner. In particular, Ms. Sabia believes that ISPs will focus on delivering entertainment applications such as IPTV and games.