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DSL,cable modems poised for takeoff

Increasing numbers of home office-based businesses and telecommuting workers are fueling the broadband demand. By 2002 at least 30 per cent of small-to-medium business Internet access will be high-spe...


May 1, 2000  


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Increasing numbers of home office-based businesses and telecommuting workers are fueling the broadband demand. By 2002 at least 30 per cent of small-to-medium business Internet access will be high-speed, according to a new report by Insight Research, Parsippany, NJ.

Currently, 65 percent of small-to-medium businesses have connections to the Internet, but only 11 percent of these are broadband. Yet according to the report, DSL vs. Cable Modems: The Future of High-Speed Internet Access, the modest percentage of small businesses with broadband Internet connections is to be expected, since economically viable solutions such as digital subscriber lines (DSL) and cable modems have only been available for the past two years.

In addition, these services are not yet universally available. Small office/home office (SOHO) users seek broadband so they can work as efficiently as larger organizations, while teleworkers need to connect with corporate LANs to access company intranets, extranets, and collaborative multimedia applications. With demand for high-speed connectivity intensifying, the report projects that approximately half of small businesses with Internet connections will have broadband access within the next five years.

“Right now DSL and cable modems have nearly equal penetration in small and medium business markets,” says Robert Rosenberg, president of Insight. “The pent-up demand means that these customers will choose whatever broadband technology is available first in their area, including solutions where fiber is connected directly to multi-tenant buildings and split among offices.”


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