Broadband Subscriptions Up - TACH To Benefit

Massachusetts, New Jersey, and California Lead in Broadband Subscribers Per Household

Washington, DC, May 22, 2003—To the surprise of many, broadband subscriptions have grown at a healthy pace since December 1999. According to a study released today by AeA, broadband subscribers jumped 488 percent, from 2.8 million in December 1999 to 16.2 million in June 2002. The study is based on Federal Communications Commission (FCC) data.

Broadband in the States 2003 found that there is some indication that growth has recently slowed, increasing by 27 percent between December 2001 and June 2002. This 27 percent increase was the slowest since the FCC started collecting statistics back in 1999.

Other Key Findings

Not surprisingly, broadband is almost universally available in urban population centers, while only 50 percent of the nation’s rural areas have a broadband provider serving customers. Cable is the dominant technology at 56.6 percent of the market, followed by DSL at 31.5 percent, and other broadband technologies at 11.9 percent. Top states by broadband subscribers are California, New York, Florida, Texas, and New Jersey. Massachusetts, New Jersey, California, the District of Columbia, and Alaska led in broadband subscriptions on a per household basis. "While the jump in broadband subscriptions has been impressive, we are at a critical juncture," said William T. Archey, President of AeA. "The most recent data indicate that the growth of broadband subscribers appears to be slowing. Given the importance of broadband to the future technology infrastructure of the United States, it is imperative that broadband continues its rapid deployment," stated Mr. Archey.

Broadband in the States 2003 examines the broadband industry at the national and state level between December 1999 and June 2002 and is based on the most current U.S. government data. AeA members can purchase the report for $45; non-members for $90. To download the report visit AeANET, or call 800-284-4232 or 408-987-4200.

AeA is the nation's largest high-tech trade association. Founded in 1943, AeA utilizes an extensive international network of offices to serve its members through advocacy, training, research and business services. www.aeanet.org.

What Does Broadband Mean for the United States?

16.2 million broadband subscribers in June 2002, up from 2.8 million in December 1999 57% of broadband subscribers receive their service using cable technology (9.2 million), compared to 1.4 million in December 1999 86% of broadband subscribers are residential and small businesses (14 million)

+3.4 million broadband subscribers between December 2001 and June 2002 U.S. Broadband Percent Growth

Dec. 1999 to Jun. 2000 = 59% Jun. 2000 to Dec. 2000 = 62% Dec 2000 to Jun. 2001 = 36% Jun. 2001 to Dec. 2001 = 33% Dec. 2001 to June 2002 = 27%

Top 5 States by Broadband Subscribers, June 2002

1.California 2,598,500 2.New York 1,460,900 3.Florida 1,119,700 4.Texas 1,050,500 5.New Jersey 693,000

Top 5 States by Broadband Subscriber Growth

December 2001 - June 2002

California +557,200 New York +261,700 Texas +209,800 Florida +208,400 Ohio +143,300 Top 5 States by Broadband Subscribers per 1,000 Households, June 2002

Massachusetts 239 New Jersey 226 California 226 District of Columbia 222 Alaska 211