Top Broadband States Still Among the Wealthiest

Durham, NH – Janurary 11, 2005 – Leichtman Research Group, Inc. (LRG) found that Massachusetts, Connecticut, New Jersey, California and New York led the continental US in penetration of high-speed Internet subscribers at the beginning of July 2004. These leading broadband states each also rank among the top ten in per capita income, having an aggregate per capita income 14% above the US average – compared to the bottom five broadband states (Mississippi, South Dakota, Montana, North Dakota and New Mexico) which have a cumulative per capita income 20% below average.

	Broadband Penetration*	Per Capita Income**
Top Five Broadband States***	32.3%	$36,000
Bottom Five Broadband States	11.6%	$25,200
US Overall	24.6%	$31,500

Sources: Federal Communications Commission and Leichtman Research Group, Inc.
* Residential and small business subscribers divided by total US Postal Service residential mailing addresses.
** Cumulative average of the states.
*** Top five states in the continental U.S. - does not include Hawaii.

The findings are from LRG's newly updated report, Broadband, Cable and DBS Across the US 2004, that analyzes state-by-state penetration of high-speed Internet, DBS and cable television services. The report is based on recent information culled from a variety of sources, including the Federal Communications Commission (FCC) and others.

Other key findings include:

• As of mid-2004, overall residential broadband penetration in the US was nearly 25%
• Seven states have broadband penetration above 30%, while nine states are below 15%
• Based on an LRG estimate, Hawaii has the highest overall broadband penetration among all 50 states
• In the first half of 2004, 3.4% of US households added high-speed Internet service – with Alaska, Connecticut and Colorado leading the nation in incremental broadband growth
• 94% of residential cable lines are over 200 kbps in both directions compared to 29% of DSL lines

“The rapid acceptance of high-speed Internet in the US continues to follow a classic consumer adoption curve, being led by those with higher incomes,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Nationwide, broadband now reaches over one-quarter of US households, but one should not assume that this is consistent across the country.”

About Leichtman Research Group, Inc.

Leichtman Research Group, Inc. (LRG) specializes in research and analysis on broadband, media and entertainment industries. LRG combines on-going surveys and analysis with years of hands-on industry experience to provide companies with a richer understanding of the potential impact and adoption of new products and services. For more information about LRG, please call (603) 397-5400 or visit www.LeichtmanResearch.com.

Broadband, Cable and DBS Across the United States compiles and analyzes state-by-state and nationwide statistics related to high-speed Internet, and Direct Broadcast Satellite (DBS) and cable television service. The tables and charts in this report are based on recent information culled from a variety of sources. This report is produced by LRG twice a year.

Click here to download a printable version (in PDF® format).
(Requires Adobe® PDF® Reader™).

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