U.S. Residential Broadband Penetration to Exceed 50% in 2007

High-speed Internet growth in U.S. homes exceeded 20% in 2006, a bellwether for future growth in other digital lifestyles services

For Immediate Release

Contact: Jenny Barrett, Chelsey Tyson
Parks Associates
972 -490 -1113
Email: jenny@parksassociates.com; chelsey@parksassociates.com

U.S. Residential Broadband Penetration to Exceed 50% in 2007

High -speed Internet growth in U.S. homes exceeded 20% in 2006, a bellwether for future growth in other digital lifestyles services

Dallas, Texas February 15, 2007 - Residential subscriptions to broadband Internet services surged 20% in 2006 to exceed 50 million U.S. households, according to Digital Lifestyles: 2007 Outlook, a new study from Parks Associates. The report estimates U.S. residential broadband subscriptions will surpass 60 million households by year -end 2007, accounting for 55% of all U.S. households.

"The foundations of digital lifestyle applications and products are built on access services, including broadband Internet and television," said Kurt Scherf, vice president and principal analyst with Parks Associates. "With the penetration of high -speed Internet exceeding 50% in 2007, we're also witnessing shifts in the way companies are positioning their communications, entertainment, and information services as home technology solutions."

Digital Lifestyles: 2007 Outlook reveals providers are delivering both broadband and television services with greater emphasis on the value -added services they enable, rather than just the services themselves. The report also finds that, in recent years, service providers have been partnering more closely with equipment vendors to strengthen the linkages between digital lifestyle services and the end -user products that enable them, including set -top boxes, home computers, home networks, gaming consoles, and other fixed and portable consumer electronics devices.

"With the demarcation points in access services migrating closer to the customers, service providers can provide much more in the way of personalized and enhanced communications, entertainment, and information services," Scherf said. "A key trend is the tightening of the value chains that enable end -to -end and seamless services. These stronger linkages will lead to greater choice and convenience in the ways customers interact with digital lifestyle amenities."

Digital Lifestyles: 2007 Outlook provides analysis and forecasts for a variety of digital lifestyle product categories, including broadband Internet, television services, digital content services (music, gaming, and video), and products (home networks and consumer electronics). For more information about Digital Lifestyles: 2007 Outlook, contact Parks Associates at 972 -490 -1113 or sales@parksassociates.com or visit http://www.parksassociates.com.

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, executive conferences, and custom -tailored client solutions. Parks Associates is also a reliable resource for industry, local, national and international press, providing data, analysis, and insight on all aspects of the "digital living" markets.

Parks Associates hosts several fall events and co -hosts CONNECTIONS™ and CONNECTIONS™ Europe (in partnership with the Consumer Electronics Association) each year. In addition, Parks Associates produces the publication Industry Insights two times per year in conjunction with the CONNECTIONS™ Conference series.

http://www.parksassociates.com | http://www.connectionsconference.com | http://www.connectionseurope.com | http://www.connectionsindustryinsights.com

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