Northeast States Lead in High-Speed Internet Penetration

Durham, NH � October 30, 2003 � Leichtman Research Group, Inc. (LRG) found that Massachusetts, New Jersey, New York and Connecticut led the nation in residential penetration of high-speed Internet subscribers at the start 2003. These leading broadband states each also rank among the top five states in per capita income, having an average per capita income 28% above the US average, and 58% above the four states (Kentucky, Montana, South Dakota and Mississippi) that are lowest in broadband penetration.

	Residential Broadband Penetration*	Average Per Capita Income
Top four states	20.7%	$39,300
Bottom four states	4.9%	$24,900
US Overall	14.3%	$30,800

Sources: Federal Communications Commission, US Department of Commerce and Leichtman Research Group, Inc.
* Residential and small business broadband subscribers divided by total US Postal Service residential mailing addresses. Does not include broadband penetration for Hawaii

Other findings include:

• While the nationwide market share for cable versus DSL was 64%, 73% of high-speed Internet connections in the top four states were via cable
• Only California, Georgia, Kentucky and Utah had more DSL subscribers than cable Internet subscribers
• At the beginning of 2003, three states had a residential penetration of high-speed Internet above 20% and 13 states had broadband penetration below 10%
• In the US as a whole, 2.8% of households added high-speed Internet service in the second half of 2002 � with Connecticut, Oregon and New Jersey leading the nation in incremental broadband growth
• The top four states in high-speed Internet penetration each rank among the bottom ten states in DBS penetration

These findings are from an upcoming LRG report, Broadband, Cable and DBS Across the US, 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), Media Business Corp. and others.

�This data continues to display the strong relationship between the adoption of broadband Internet and household income,� said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. �With over 22 million broadband subscribers in the US today, attracting consumers from a broad economic base will play an important role in broadband�s future growth.�

About Leichtman Research Group, Inc.

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

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