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May 16, 2008
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Press Coverage

Selected news stories about the Pew Internet Project and articles citing our data.

Price war spurs rise in high-speed Internet subscriptions

5/29/2006 | CoverageCoverage

Peter Svensson, The Associated Press, Star-Telegram.com

'“Middle- and working-class Americans signed up for high-speed Internet access in record numbers in the past year, apparently lured by a price war among phone companies.

Broadband adoption increased 59 percent from March last year to March 2006 among U.S. households with incomes between $30,000 and $50,000, according to a survey released today by the Pew Internet and American Life Project.

It increased 40 percent in households making less than $30,000 a year. Among blacks, it increased 121 percent, according to the study.

Middle- and lower-income households still lag higher-income households when it comes to broadband. Among the $30,000-$50,000 households, 43 percent have broadband, compared with 68 percent for those making more than $75,000.

Overall, 42 percent of adult Americans, or 84 million people, have broadband, compared with 30 percent a year ago.

Phone companies last year started slashing prices for broadband service that uses a regular phone line to establish a digital subscriber line, or DSL.

"It seems like the aggressive pricing strategies have had some effect for DSL providers in those middle-income segments," said John Horrigan, associate director for research at Pew."


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