Even with price erosion, U.S. Internet access market continues to grow.(MARKET INTELLIGENCE)

The total U.S. Internet access services market will have strong single-digit growth for the next five years, according to In-Stat/MDR.

The high-tech market research firm estimates that the market was $35.1 billion in 2003, and of that total, consumer access services generated nearly two-thirds of the revenue.

Broadband access services revenues for both the consumer and business market remain the largest drivers of Internet access service revenues.

A common theme found across both the consumer and business markets is the continuing decline in dial-up services.

Both markets are continuing to migrate away from this lower-bandwidth service towards broadband.

In-Stat/MDR has also found that:

--Despite the growth in the number of dedicated Internet access (DIA) connections and bandwidth used, DIA services revenues are declining. DIA services continue to face downward pricing pressure from the growth in broadband and the oversupply of DIA service providers.

--Consumer access services generated approximately two-thirds of all Internet access service revenues in the U.S. for 2003.

--Broadband generated 50 percent of revenues in 2003, and will account for over 71 percent by the end of 2008.