*Report: Internet Access May Double by 2004

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U.S households with Internet access will nearly double to 90 million by the end of 2004, according to the Strategis Group, a Washington-based market research and consulting firm, in a report released yesterday.

The number of Internet households increased from 14.9 million in 1995, to 46.5 million. Internet penetration of businesses reached 6.3 million in 1999, and will rise to 8.3 million by 2004, with a total number of 171 million Internet users, according to the Strategis Group.

The report, "Internet Services Providers: Financial Benchmarks and Market Potential" said the average monthly access revenues from residential customers fell last year to $17.94 helping to drive growth, but by 2003, they expect access-fee revenue to total $30.2 billion.

"While the projected growth of households with Internet access seems extreme, it is quite comparable to the pace of adoption for other major communications/entertainment media," said John Zahurancik, vice president-broadband research for the Strategis Group. "Television usage among households grew from about 9 percent to 87 percent in the 1950s. Radio jumped from 10 percent of households to about 70 percent from 1925 to 1935 -- in the midst of the Depression. With economic prosperity, heavy investment and the pace of Internet innovation, it is no wonder that we have seen this rate of growth."

The report is available in electronic and print format e-mail, sales@StrategisGroup.com.

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