Companies and Markets
Call us on +44 (0) 203 086 8600
Market Research A to Z | Company Profiles A to Z | RegisterRegister | Contact UsContact Us | Shopping Basket Shopping Basket
+44 (0) 203 086 8600 Call us on

US internet service providers market controlled by SBC Communications (AT&T)

Industry Sector

Information Technology

Published

24 January 2013

Author

Matt Bodimeade

Type of News

Market

The US internet service providers market has greatly benefited from the move toward ubiquitous internet access and the exponential growth of internet traffic.

Through the five years leading up to 2012 industry revenue has grown at an annualised rate of 2.3% to hit a market value of $47.9 billion. Furthermore, regulatory overhaul in 2012 will necessitate government-subsidised network expansion and increase the number of US broadband connections, driving revenue growth.

Access to the Internet can be divided into dial-up and broadband access. Around the start of the 21st century, most residential access was by dial-up, while access from businesses was usually by higher speed connections.

In subsequent years dial-up declined in favour of broadband access. Both types of access generally use a modem, which converts digital data to analog for transmission over a particular analog network.

Business customers have emerged as the most lucrative growth market in the Internet Service Providers (ISP) industry. The increasing adoption of cloud computing (which involves accessing data and software through the internet) is boosting demand for high-speed access services.

Additionally, ISPs are increasing their array of value-added services, acquiring cloud and infrastructure consulting firms to profit further from the business market.

The leading broadband provider in the United States is SBC Communications (AT&T) with 14.8 million subscribers as of the third quarter of 2008. SBC is followed by Comcast, Time Warner, and Verizon. And while there are many cable companies offering broadband services in the United States, three are seen as the main providers: Comcast, Time Warner, and Cox Communications.

The United States has over 67.7 million people subscribed to the top broadband providers, which accounts for 94% of the market.

In measurements made between January and June 2011, the United States ranked 26th globally in terms of the speed of its broadband Internet connections, with an average measured speed of 4.93 Mbit/s. South Korea led the list with an average of 17.62 Mbit/s, followed by Romania (15.27 Mbit/s) and Bulgaria (12.89 Mbit/s).

In recent years, consumers have increasingly viewed the internet as a necessity rather than a luxury, a perception that will only become more widespread over the coming years. As internet traffic continues to increase, ISPs will exercise more control over their networks and will likely restructure their pricing to a usage-based model, which likely elicit strong opposition from consumers.

For more information on the US internet service providers market, see the latest research: US Internet Service Providers Market

Follow us on Twitter @CandMResearch

Visitor Comments

All posts are pre-moderated and must obey the house rules.

Change Currency

GBP
USD

Change Currency

GBP
USD

Use our research skills: Get free support

Free Research Support: Let us do the work for you and find information from public and private sources of information. Contact us now and we can save you time and money.......Free Research Support

eBrandPromote: Get your brands ranked highly online

eBrandPromote: Let us promote your brand online through article writing, press release distribution, social media and search engine marketing services. Click here to download our eBrandPromote brochure.

Accessibility
Close

Contrast settings

Text size settings