2006 was another record year for High-Speed Internet.

Leichtman Research Group, Inc. (LRG) found that the twenty largest cable and telephone providers in the US – representing about 94% of the market – achieved record net high-speed Internet additions in 2006. Combined net additions for the year totaled over 10.2 million subscribers – a total that exceeded the previous record set in 2005 by about 500,000 subscribers.

Other key findings for the quarter include:

As of the end of 2006, the top broadband providers accounted for over 53.3 million high-speed Internet subscribers

The top cable broadband providers now have a 55% share of the overall market versus telephone companies, with 29.3 million high-speed Internet subscribers compared to 24.0 million for phone companies

The top telephone providers netted 54% of the broadband additions in 2006

The top telephone providers added a record 5.5 million broadband subscribers in 2006 – about 230,000 more than in 2005

Cable operators added a record 4.70 million broadband subscribers in 2006 – about 270,000 more than in 2005

In the fourth quarter of 2006, cable and telephone providers added nearly 2.5 million broadband subscribers – with telephone companies capturing 53% of the net additions in the quarter.

“Despite an increasingly penetrated broadband market, both cable and telephone companies were able to add more broadband subscribers in 2006 than in any previous year,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “With over 53 million broadband subscribers in the US, it is increasingly important for providers to focus on gaining profitable subscribers, rather than attempting to set a new record in 2007 for net broadband additions.”

In related broadband research, LRG’s analysis of the Federal Communications Commission’s (FCC) recently released report “High Speed Services for Internet Access: Status as of June 30, 2006” found that:

The top five states in residential broadband penetration as of mid-2006 were New Jersey, Connecticut, Hawaii, Massachusetts and California

The bottom five states in residential broadband penetration were Mississippi, North Dakota, South Dakota, Arkansas and Alabama

88% of cable broadband lines had speeds of over 2.5 mbps in the fastest direction – compared to 27% of DSL lines

These findings are included LRG’s updated report, Broadband Across the US, that analyzes state-by-state penetration of high-speed Internet. The report is based on recent information culled from a variety of sources, including the FCC and others.

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