Recent Surge in Broadband Demand May Be Short -Lived

Less than one-third of U.S. households with dial-up Internet service are interested in upgrading in the next 12 months, indicating a significant decline in potential broadband subscribers over the past year.

For Immediate Release

Contact: Elizabeth Parks
Parks Associates
972 -490 -1113
sales@parksassociates.com


Recent Surge in Broadband Demand May Be Short -Lived
Research from Parks Associates finds that interest in
upgrading to broadband Internet service is diminishing

Dallas, Texas March 16, 2004 - Less than one -third of U.S. households with dial -up Internet service are interested in upgrading in the next 12 months, indicating a significant decline in potential broadband subscribers over the past year.

According to Parks Associates' Trends in U.S. Broadband Adoption, almost one -half of dial -up subscribers were inclined to upgrade to broadband at year -end 2002. But given the declining interest in broadband, 2004 may fall short of the 50% gain in broadband households experienced in 2003, unless service providers offer more enticing benefits such as dramatic price decreases or novel bundled service offerings.

"Continued growth in residential broadband requires an ever -increasing number of dial -up households jumping ship to higher -priced, higher -bandwidth offerings," said Michael Greeson, vice president of research and strategy for Parks Associates. "But interest in upgrading to broadband seems to have peaked in Q4 2002 at around 50%, a level of interest that translated into hefty subscriber additions during 2003. As interest in upgrading declines, broadband service providers must reinvent the broadband market message, significantly lower what they charge for service, or offer some unique combination of these two strategies."

Parks Associates' most recent broadband report, Trends in U.S. Broadband Adoption, features consumer data collected in Q4 2003, as well as a summary and analysis of residential broadband service offerings and strategies in the U.S. For more information, visit www.parksassociates.com or contact Parks Associates at sales@parksassociates.com or 972 -490 -1113.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start -ups through market reports, multiclient studies, consumer research, workshops, and custom -tailored client solutions. Parks Associates also hosts two executive seminars, both part of the Fall Focus series, and co -hosts CONNECTIONS™ (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com

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