Parks Associates Announces Residential Broadband & Home Networking Markets Proceeding on Course

Business Wire, August 6, 2001

Business Editors/High-Tech Writers

DALLAS--(BUSINESS WIRE)--August 6, 2001

Parks Associates' Latest Consumer Research Reinforces Firm's Early

Forecasts for Residential Broadband and Home Networking Growth

One-third of U.S. households currently subscribing to dial-up Internet service are interested in upgrading to broadband service in the next 12 months, according to Parks Associates' latest consumer study, Bundled Services & Residential Gateways.

Additionally, 28% of broadband subscribers intend to purchase home networking solutions in the same period, indicating that subscriber growth for these advanced technologies will be modest but steady in the coming months.

This research supports previous forecasts offered by Parks Associates, which predicted that 10.7 million U.S. households will subscribe to broadband service and 5.7 million households will have some form of home network deployed by year-end 2001. Using their latest consumer data, Parks Associates estimates that as of the end of June 2001 there were 8.6 million U.S. households subscribing to broadband service, very close to the 8.3 million households originally forecast. Similarly, as of the end of June 2001 there were 5.5 million home networks deployed in U.S. households, slightly higher than the 4.9 million previously forecast by Parks Associates.

The latest primary consumer data confirms that despite general economic uncertainty and the downturn in technology-related ventures, consumers are very interested in purchasing new technologies such as broadband and home networking but at a price that says "value."

"The early adopting consumer is ready to purchase networks and adopt broadband but must wait on excellent product with rational pricing," said Tricia Parks, president of Parks Associates. "It's more important than ever to have a complete understanding of what consumers want and how much they will pay."

"Our forecasts have always been grounded in an intimate understanding of the consumer," says Michael Greeson, senior analyst with Parks Associates. "That is in many ways what separates our research from our competitors."

Parks Associates' latest research effort, Bundled Services & Residential Gateways, surveyed 2,500 U.S. households. The soon-to-be-released report contains consumer data as well as interpretation and analysis of the attitudes and trends impacting consumer electronics; Internet service; home networking technology; home security and control services; digital video and audio services; and a number of other legacy and next-generation applications made possible by the delivery of broadband technology to the home.

To complement this consumer data, Bundled Services & Residential Gateways will also survey the companies involved in the design and manufacture of consumer-premise equipment, such as residential gateways (RGs), and the broadband service providers beginning to deploy RGs. These surveys will offer a unique industry perspective on which services and features are most important to consumers, as well as a rare glimpse into what the future market for RGs may look like.

For additional information about Parks Associates' Broadband Access @ Home 2001, please contact Steve Harvey or Dan White at 972/490-1113 or at sales@parksassociates.com.

About Parks Associates: Parks Associates is a Dallas, Texas-based market research firm specializing in emerging technologies and services for the home and small business. Founded in 1986, Parks Associates provides primary and secondary research on home systems, in-home networks, home security, consumer electronics, telecommunications, Internet service, energy utility, and subscription TV industries. Parks Associates' clients include both Fortune 500 companies and small start-ups. Services include syndicated reports, multiclient studies, custom consulting, workshops, and conferences.